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Are you seeking a potentially more manageable, more convenient, and secure way to handle your real estate transaction? It can be an arduous process when selling a home. But today's home seller has more options than ever.
The notion of a more straightforward real estate transaction has given way to an innovative new approach towards buying and selling homes that simplifies and improves the customer experience- the iBuyer.
iBuyers are real estate investment companies who use technology to make automated, instant (that's the "i" part) offers to home sellers in quick-closing cash transactions. iBuyer offers use computer algorithms and other criteria, and if accepted, they can close within days. In turn, the iBuyer then handles marketing and reselling the house to someone else for a profit. But iBuyers look for value-added flips that are liveable houses needing only minimal repairs or cosmetic improvements. The actual price an iBuyer pays a seller is typically the accepted offer after deducting repair costs.
Flippers, "ugly house" buyers, or other investors typically seek properties that need work to get in salable condition and flip. They buy low and hope to sell high after renovations, making a profit on the difference between the amount invested and the sale price.
For homeowners who need to sell quickly because of death, disaster, debt, divorce, or other life events, iBuying or instant offer services and agents who offer these options enable home sellers to quickly sell their property to a company rather than to an individual.
While getting the best deal in a transaction is essential, this can be a good solution for a seller who places more value on time and efficiency or may have been reluctant to sell because they didn't want to deal with the hassle. There is no need to find a real estate agent, renovate your house, or show the property to instant offer programs. An iBuyer company will present a cash offer in as little as 24 hours.
An iBuyer offer depends on an algorithm that weighs your home's condition, age, features, square footage, zip code, and local market trends and then calculates a (below market) offer. You may also need to pay transaction and other fees or repair adjustments for the convenience of a quick, off-MLS sale. By comparison, a Realtor who charges a 5% or 6% commission should get you the highest and best price when they market it on the MLS and other venues.
iBuyer companies don't want to buy everything. Most have "sweet spots" or niches such as homes valued from $200,000 to $400,000. Also, as new as this market segment is, most iBuyer companies are not profitable- they are still finding their way within the market. They are also primarily located in significant markets, preferring metro areas with newer and tract homes that are easier to value.
Instant-offer companies like Opendoor, Offerpad, and Zillow Offers purchase houses to "fix and flip." When working with an iBuyer, you are dealing directly with them. Their interest lies in getting the house for the least amount possible.
Working with an iBuyer service can be daunting. You should obtain representation from a professional looking out for your best interest. As your representative, we will discuss your options, navigate the process, manage multiple iBuyer companies.