What You Should Consider

Before Selling to an iBuyer

What is an iBuyer?

Selling a home can be a stressful and time-consuming process. Between finding the right real estate agent, staging the home, hosting open houses, negotiating with potential buyers, and dealing with inspections and repairs, it can take months or even years to sell a property. That’s why many homeowners are turning to iBuyers as an alternative solution.

iBuyers are tech-driven real estate companies that use automated valuation models (AVMs) to determine a property’s value and make cash offers on homes within a matter of days. They operate in specific geographic areas and have their own criteria for the types of homes they will buy. The biggest iBuyers, based on their real estate transaction volume, are Opendoor and Offerpad. Below are some statistics from iPropertyManagment that you might impact your decision when it come to iBuyers. Opendoor reported purchasing 34,962 homes homes in 2022. Offerpad reported purchasing 9,034 homes in the same period.

iBuyers’ median purchase price is 24% lower than the nationwide median home price of $375,639.
iBuyer market share declined by an estimated 24% in 2022 Q1.
Realtors report that 2% of homes they sold from May to July 2021 were purchased by iBuyers.
Real estate agents receive an average 2.28% commission when they sell to an iBuyer.
Up to 87% of home buyers still use a real estate agent.

Pros of Selling You Home to an iBuyer

Now that we know what an iBuyer is, it’s time to explore some of the advantages and disadvantages of working with one as a seller. When selling your home, you want to maximize profits as much as possible, and depending on your situation, an iBuyer could be either a great option or an ill-advised maneuver. Let’s go over some of the pros and cons so that you can make the best decision based on your real estate needs.

Quick and streamlined process: One of the biggest advantages of selling to an iBuyer is that the process is much faster and more efficient than a traditional real estate sale. iBuyers eliminate many of the steps involved in a traditional sale, such as listing the home, hosting open houses, and negotiating with potential buyers. Instead, the iBuyer takes on many of these responsibilities, making the process faster and more streamlined.
No need to work with a realtor: When you sell your home to an iBuyer, you don’t need to work with a real estate agent. This can save you time and money, as you won’t have to pay a commission to the agent. Plus, you won’t have to worry about finding the right agent to sell your home or dealing with the hassle of scheduling showings and open houses.
Cash offers: Most iBuyers make cash offers on homes, which can be a huge advantage for sellers. A cash offer means that you won’t have to deal with the uncertainty of waiting for a buyer to secure financing or waiting for the sale to close. Plus, you’ll have the flexibility to use the cash for a down payment on a new home or to pay off other debts.
No need for repairs or renovations: Many iBuyers will buy homes in as-is condition, which means you won’t have to worry about making repairs or renovations to the property. This can save you time and money, as you won’t have to spend money fixing up the home before selling it.

Cons of Selling Your Home to an iBuyer

Limited availability and qualification: One of the biggest downsides of selling your home to an iBuyer is that they operate in specific geographic areas and have their own criteria for the types of homes they will buy. If your home is not in an area where iBuyers operate or if it requires extensive repairs or renovations, you may not be able to sell it to an iBuyer.
High transaction fees: When you sell your home to an iBuyer, you’ll likely have to pay transaction fees that can be higher than the fees associated with a traditional real estate sale. These fees can include things like processing fees, service fees, and closing costs. While iBuyers claim to offer a streamlined and hassle-free selling process, the fees associated with their services can add up quickly.
Lower offers: While iBuyers offer the advantage of cash offers and a quick selling process, they may not offer the same price you could get if you sold your home through a traditional real estate agent. iBuyers use automated valuation models to determine a property’s value, which means that they may not take into account certain factors that could increase the value of your home, such as upgrades or unique finishes.

Should You Consider Working With an iBuyer?

The iBuyer industry is still relatively new in the real estate market, which makes it difficult for sellers to determine if working with an iBuyer is a good idea. Although each seller’s situation is unique, if you’re seeking a quick, convenient, and hassle-free real estate experience that deviates from the traditional approach with a realtor, an iBuyer is an excellent option. In today’s market, where there are numerous choices for selling a home, an iBuyer is a welcomed tool that every seller should consider.

Sell Your Home Quickly with Love Real Estate!

If you’re looking to sell your home quickly and are attracted to the cash offers that iBuyers can provide, Love Real Estate is an ideal resource for you. To expedite your home-selling experience, learn more about Love Real Estate’s straightforward offers. Submit your info here for a an all cash offer today!