Believe it or not, the internet has revolutionized the way you buy and sell a home in today’s times.
Every year, an increasing number of prospective buyers locate their dream homes online. For this reason, it is imperative to list your home with a tech-savvy company.
A wise investment indeed!
When it comes to sellers, they too are getting a piece of the action and are receiving mind-blowing offers from qualified buyers and selling their homes.
Now, instead of going the traditional way, did you know of the concept of selling your property to an iBuyer?
iBuyers are the ones who say “we buy houses for cash” sans the hassle which you would have to endure had you chosen to sell with a real estate agent.
Here’s a fun fact you may not have known: iBuyers purchase your house like it and since most iBuyers make an offer on your house in 24–48 hours, the “I” in iBuyer stands for “Instant.”
They usually close the deal in two weeks or less. At the same time, you can avoid the hassles and uncertainty of listing with a real estate agent and negotiating terms by selling to an iBuyer. The cost of a rapid, convenient transaction is that iBuyers typically pay less.
Instead of listing the home on the open market, they accept an offer from a corporation to purchase the home, which will then sell it on the open market.
Why use a middleman instead of going straight to the market? It’s all about convenience for many people.
Now, as easy as this sounds, the grass may seem greener on this side…
This brings us to the most burning question most of you may have…
Is it worth selling to an iBuyer considering they’re the most hassle-free option and cheaper as opposed to other options?
In this article, we’re going to deep dive and give you a clear picture of iBuyers.
If you stick around till the end of this article, a promising alternative awaits you.
What’s The Process of Selling a House To An iBuyer?
Reaching out to an iBuyer
The first step is to find an iBuyer who will make you an offer.
Not every corporation buys houses in every neighborhood. Companies will grow (and some will die out) into new markets as time goes on.
Send me a message if you’d want to find out if there’s an iBuyer in your region.
A real estate agent can also connect you with an iBuyer, as some real estate organizations have their own systems.
Provide information about your house
The iBuyer will need as much information as possible about your property. Photographs are strongly advised and, in some situations, needed.
Giving them as much information as they request and being as concise is a good approach.
They’ll view your house eventually, so painting an accurate picture of its condition and level of updating will save time and get you a reasonable offer.
Getting an Offer
iBuyers will give you a cash offer through email, usually within 24 hours.
Although Zillow does a property assessment prior to making an offer, most other businesses will provide you with a number within 24-48 hours.
Most firms will adjust this offer to reflect any renovations that they believe are required to resell the home.
Will you be allowed to haggle with an iBuyer on your offer? Most likely not. They know exactly what figures they need to provide in order for their model to work.
As a result, their total number is usually fixed.
You can, however, question their assessment if they’ve made a mistake. Perhaps they overlooked a comparable transaction or failed to account for a finished basement.
That is your opportunity to ask for a higher number if you want them to rethink their rating due of such errors.
Aside from that, there is unlikely to be any wriggle room.
You will digitally sign a contract with your iBuyer if you decide to accept your offer.
They’ll send someone over to your house to conduct an inspection shortly after that.
The iBuyer will send a professional, a house inspector, a contractor, or a combination of all of these people to your home.
Just like any other home inspection, they’ll need access to your entire house.
Negotiate (Round 2)
After that, many companies will give you the option of doing the repairs themselves or adjusting the amount for the repairs by reducing the sales price before closing.
It’s often easier for you as the seller negotiates better and adjusts the amount in the final price rather than doing it yourself, just as it is in a conventional real estate transaction.
Close and shake hands
You choose the closing date, which can be as soon as 7-10 days or as long in advance as you choose.
There is a time limit — usually approximately two months — but some companies will allow you to rent back your home if you need it.
How Do They Make Their Moolah?
Houses that can be resold for a minor profit on the open market are purchased by iBuyer businesses. They use sales data and their own pricing models to give home sellers quick offers on their properties.
These businesses charge a service fee for the speed and convenience they provide as part of the iBuyer business model.
The two main iBuyers, Opendoor and Offerpad, charge 5% of the sale price, while Redfin Now charges a variable fee that can be as high as 13%. This fee is used to offset the iBuyer’s operating expenses (utilities, property taxes, and so on) and assure profitability.
Other home buying and selling services, such as title insurance, mortgages, and financing choices, provide a revenue stream for iBuyers. Sellers in a hurry usually use iBuyers since they need to close the deal as soon as possible.
How Does Selling Your House To An iBuyer Benefit You?
You won’t have to do much to prepare your home because it won’t be visible. Obviously, you will not be able to avoid transferring your belongings at some point.
High chances of getting offers
Although there are some cases where these so-called iBuyer companies promise “we buy houses for cash” pulling away from a deal in exceptional circumstances, this is uncommon. Their contracts are all cash and almost guaranteed to close.
You choose a closing date as per your convenience
iBuyers will work according to your schedule. They are typically allowed to adjust the closure date as well. This is done within a specific timeline, which is usually a couple of months.
A better alternative in some cases
If your home is in good shape, traditional “cash for your home” investors will give much less than iBuyers.
What About the Not-So-Beneficial Aspects of Selling To An iBuyer?
This is where having an agent comes in handy. They can show you how much money you might be giving up for convenience.
Offer adjustment phase
Will an iBuyer demand more repairs than a typical homebuyer? It is difficult to determine without entering into a contract with them and seeing what they seek following their inspection.
Your house may not make the cut
In certain markets, buyers typically purchase homes up to a specific price range and in good shape. They are more likely to pass if you have a more expensive home or if your home requires a considerable amount of repair work.
Which iBuyer offers The Best Price?
If you’re looking for the best returns, Houzeo can help you save a lot of money. In terms of numbers, the service price can only range from 0% to 2.50% of the buyer agent commission, saving sellers between 3% and 6% of the commission. Not to mention the speed with which they handle sales and the most exposure your house receives. Listing your house on the MLS to many websites like Zillow, Realtor, Redfin, Trulia, and others!
Is iBuyer For You?
The first and most important step is determining whether your home meets the standards of an iBuyer. If it does, and you’re not so sure whether to proceed with it, bear in mind that many iBuyers will make you an offer without any commitment.
Depending on where you reside, you may be able to seek offers from more than one iBuyer. It’s best to check iBuyer reviews across various websites to get a better idea.
Any iBuyers offer is valid for a very short time (typically you’ll have anywhere from a week to 10 days to accept the offer), but seeing an actual number may motivate you to proceed. On the other hand, it may sway you toward taking the traditional method and hiring a listing agent.
In either case, you must decide which is more important to you. Don’t want to deal with the hassle of preparing your home for sale and rearranging your schedule to accommodate showings? An iBuyer could be ideal for you.
Are you more concerned about increasing your profit? Using a knowledgeable seller’s agent and conducting a typical transaction may be a better bet.
Is There A Better Alternative?
Not satisfied even after reading various iBuyer reviews, we have shortlisted better alternatives for you.
We Buy Ugly Houses
We Buy Ugly Houses has been active in the real estate in business for almost two decades, and its company strategy, prestige, and home-buying procedure are well established.
They do, however, function on a franchise basis, which means that the kind of service you may receive will vary based on your area.
We buy ugly houses that provide a speedy closing, as soon as three weeks, but an individual should not expect a high return because they offer significantly less than the true market value.
Houzeo is the most popular site for sellers seeking cash house buyers. For a tiny flat cost, Houzeo gives you access to the might of the MLS.
Zillow, Realtor.com, Trulia, Redfin.com, and hundreds of other websites syndicate MLS listings. Listing your home on the MLS allows you to target all local and national firms that purchase houses for cash. More visibility equals more competition and the best possible cash selling price.
Houzeo is one of the best flat fee MLS and also has excellent technology that gives you complete control over your listing. If you have any problems, Houzeo’s 5-star customer care staff is here to help.