Pros and Cons of Selling Real Estate with an iBuyer

iBuying, short for instant-buying, is among the newest trends in the real estate sector. Typically, iBuyers are online companies that allow for instant transactions on qualifying homes. iBuyers incorporate the latest technology to determine fair prices for the homes they buy.

Currently, iBuyer titans include Offerpad, Zillow Offers, OpenDoor, and Redfin. Smaller companies are gradually securing positions in this market.

iBuying services bring forth a radical wave in real estate, characterized by top-tier convenience and flexibility. Similar to other trends, iBuying comes with various strengths and weaknesses. Below are the pros and cons of iBuyers to enable you to decide the best choice.

Pros of using an iBuyer

Excellent Speed

The biggest attraction with using an iBuyer is the speedy selling process. These companies allow for quick property sales while avoiding the grueling procedure of locating prospective buyers. Thus, you sell your property within your suited timeframe.

Usually, top-realtors may take about 40-50 days to close. That is, without considering the time taken to tour and accept the offer. On the other hand, an iBuyer may close a sale within as little as 24 hours. Being the homeowner, you determine the most appropriate selling time for your property.

Convenience

Where convenience is a priority, iBuyers are the go-to platforms. iBuying is a uniquely convenient means of selling your property. All transactions happen online, and physical interaction isn’t necessary.

You only need to fill an online application form and some vital paperwork. Hence, the transaction is from the comfort of your home and only requires an internet connection. Additionally, you don’t have to wait for buyer bank approval and counteroffers. 

No realtors

Finding the right agent to sell your property can be quite a daunting task. Selling your property via a realtor may build distrust, however much you enforce transparency. Moreover, the agent may not be in a position to explain your motive as the seller.

With iBuyers, there’s no need for third parties. The transaction is entirely between you and the iBuyer.

Inspection

When working with a top realtor, you require a home inspection done. Your property must be in the best shape for a higher value. The inspection also accrues more attraction for your property.

iBuyers are perfect, especially if you have no time and resources for hiring inspectors. Most of these firms purchase property in the as-is condition, even with deficiencies.

Repairs and Renovations

Homebuying companies require you to renovate your property before putting it up for sale. At times, the repair process is unaffordable, placing a strain on your wallet.

If you lack the patience for fixing problems, iBuyers are your friendly partners. They decide the property value based on its pictures then make an offer. They meet the repair expenses and ensure your home is ready-to-sell.

Staging

It’s the seller’s responsibility to market their property and improve the stances of meeting prospective buyers. Staging calls for lots of commitment, effort, and money. However, doing it yourself is somewhat overwhelming.

iBuyers save you from this hassle, by staging your house strategically. Therefore, finding potential buyers is secure and takes less time. 

Certainty

Among the unmatched benefits of iBuyers is exemplary certainty. With regular homebuyers, top realtors included, the deal assumes various uncertainties and risks.

Once an iBuyer approves your property, you’re sure that it’ll sell. It’s inherently upon the iBuyer to find the market and sell your home.

Flexibility

iBuying entails creating a smooth and friendly procedure for selling your property. The iBuyer embraces the crucial hassle of buying and selling property.

Some sellers purchase their next home before selling their current one. Meeting two mortgages is somewhat financially draining. Marketing to an iBuyer means you move at your pace, hence evading financial stress.

Cons of Using an iBuyer

Below Market Sale

Despite being quick to close, iBuying, inevitably, comes at a cost. iBuyers take a massive risk in paying swiftly. Consequently, they present a lower offer for your property than with realtors.

In their strategy, a quick turnaround means they make much profit within such a short time. Based on research, homeowners get about $15,000 less from an iBuyer, than from alternative buyers.

Deductions

As aforementioned, iBuyers save you the struggle of inspection visits and renovation. However, the iBuyer taking responsibility for repairs yields resultant deductions in the overall home offer.

For property in a sorry-state, these deductions create a much-lower value for your home. Thus, you get way less than you would have, had you fixed the repairs yourself.

Limited Availability

iBuying is a relatively new trend, which is still at the infancy stage. Current iBuyers only operate in specific cities and states. Often, these firms only work with homes that meet specific standards and price ranges. 

iBuying is gradually expanding its horizons, with a consistent upward trend. If you must use an iBuyer, ensure you confirm its availability within your residence.

Higher Transaction Fees

Transacting with iBuyers can be somewhat pricy. On average, realtors charge about 5%-6% of your property’s final price in transaction fees.

Typically, homeowners pay approximately 13% to 15% more in fees than with realtors. It’s way higher than the overall closing and commission fees for standard real estate dealings.

No Negotiation

The iBuying platform doesn’t offer room for discussion and negotiation. The iBuyer established market value for your home is final.

Most often, buyers will always look for lower prices. If selling with a realtor, you can discuss the price, before reaching a consensus. With iBuyers, asking for higher property value is entirely out of the picture.

Realtors Can Do the Same Thing

iBuying comes with a broad array of benefits. On the flipside, realtors could similarly be efficient working similar to iBuyers.

Just like with iBuyers, a top realtor will sell your home within a short time. A proper realtor only needs to establish a fair yet competitive price for the property. Distinct emphasis on the home’s outstanding features, to a great extent, improves your home value.

Zero Interactions

Essentially, iBuying is an online procedure, entailing no interactions whatsoever with the buyer. Some homeowners carry an emotional connection to their property. Thus, the sale of the same is quite emotive and personal for them.

With iBuying, all communication happens online. Different from realtors, there’s no face-to-face interaction. Therefore, you may feel like iBuyers deprive you of a heartfelt good-bye with your property.

No Expert Representation

Most of us require an extra hand to guide us through the selling process. Usually, we consult with experts, particularly in the real estate field.

When it comes to iBuyers, there’s no handholding whatsoever, and you’re on your own. Online information may come in handy, but it doesn’t make the process any easier. This time, you undertake the entire process alone, without any form of representation.

The real estate sector encompasses a wide range of selling options. It’s up to you to evaluate and determine the best choice for you.