iBuyer programs have become more and more popular in the real estate world. Here are a few things that you should know about them.
Some of our clients have been asking us about iBuyers lately, so I wanted to address the topic today. iBuyers are essentially companies that will give you an instant cash offer on your house and be able to close in just days if that’s what you need to be able to do. Zillow and Homelight have already rolled out programs and have seen some success.
Is selling your home with an iBuyer a good idea? Possibly. It depends on your situation. People who sell their houses with an iBuyer typically sell for at least 10% less than they could on the open market, per Forbes.com. If you open your house up to the entire market, you will have created a bit more demand for your house which means more buyers.
An iBuyer fills a great niche for those who need to sell quickly, but don’t expect to get top dollar with this method. From what I’ve seen and heard, these companies make an offer on your house and then deduct a fee of 6% to 8% off of the price. Ultimately, they’re going to have to remarket and sell your home or repurpose it as a rental.
Another frequent complaint I’ve seen about iBuyers is that if they find things wrong with the home during their final walk-through, it can lead to even more deductions.
If you hire a Realtor to sell your home, you will still have around a 6% commission and have to prepare your home a bit, but you’ll also be much more likely to sell for top dollar.
Zillow’s instant offer program hasn’t reached Madison yet. However, those who have received an instant offer from the Zillow program, 90% end up selling their home in the traditional way, with the help of a Realtor.
Is there a place for iBuyers in our market? Of course. The advantages outweigh the disadvantages for a portion of homeowners out there. However, it’s not the way to go if you want top dollar for your home sale.
If you have any questions about iBuyers, your home’s value, or anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.