iBuyers are getting more popular in many major real estate markets across the country. This adds yet another option for sellers to consider when putting their home on the market.
iBuying is short for instant-buying, because it is a quick transaction without in-person contact and for all cash. iBuyers are online real estate companies that only have online agents. They don’t come to your home physically and look at it before they buy it.
The big players in this space are Open Door, Zillow Offers, Redfin and Offerpad - but there are various smaller companies that are making their way into the market too.
iBuyers make the transaction completely online with the homeowner and typically do that in a shorter time frame than traditional agents would be able to. They also are able to offer all cash to sellers to entice those that are wanting to sell quickly.
These companies make a profit by purchasing the homes below market price and then reselling them within 60-90 days or holding in a rental portfolio.
How this will impact the overall real estate market is unclear. The initial reaction is that it could further increase demand and lower supply by introducing more cash buyers, reducing the number of homes that are sold to individual buyers.
The emergence of iBuyers has grown rapidly within the past year and has the potential to make a big impact in the world of real estate. As a seller you have to think about your own goals to determine if using one of these services is right for you.
Here are some pros and cons of iBuyers to help you decide which choice is best for you.
Ultimately, the decision is based on your timeline and goals as a seller.
If you need to sell your house quickly, then an iBuyer might be the right choice for you. Just keep in mind that you will likely get an offer for less than your home is worth. The fees might eat into profits as well.
Real estate agents are more reliable and can help you get a better price for your home if you are willing to take a little bit more time to find the right buyer.
Take your time & consider all the factors when deciding how you want to sell your home. Historically speaking, most tend to go with the traditional model of using a local real estate agent.