Selling to an iBuyer is convenient, but that convenience comes at a cost.

What is an iBuyer? Should you sell your home to one instead of listing the traditional way?

iBuyer stands for “instant buyer,” and these instant buyers are companies that offer to buy your home for cash in as little as 24 hours and sell it shortly thereafter. They allow you to choose the closing date, and you’re free to sell the property as is. This is convenient, but the downside is that your offer will probably be below market value, and fees and repair costs still apply. 

It’s important to note that they call their cost “fees” rather than “commissions.” They’re trying to differentiate themselves from the traditional market, which can be confusing for consumers. While the valuation methods might differ from company to company, the name of the game for them is speed.

With some companies, you’ll simply enter your information and the home’s details into an online form and they’ll run comparable sales and factor in any improvements the home needs before making an offer. Be mindful of the fact that they’ve never been in your home, though. Assuming you like their offer, one of their representatives will visit your home and verify that it’s in the condition you described. Typically, they’ll claim it’s not, but they’ll still offer you an account for any necessary repairs and adjust their price accordingly. 

“While the valuation methods might differ from company to company, the name of the game for them is speed.”

Other companies will send someone to your home after you request an online offer, and after they’ve seen the home in person, you’ll get your offer soon afterward. Not too many companies do this, though. They usually want to get you excited about their initial offer and then give you another after they’ve seen the home. 

On the other hand, you’ll receive an all-cash offer quickly and not have to deal with any pesky mortgage lenders or homebuyers who get cold feet at the last minute (which does happen, but not if you have the right plan in place). These iBuyers are happy to buy homes in any reasonable condition without you needing to find an agent, clean and stage the home, etc. Some of the largest iBuyers include OfferPad, Redfin, OpenDoor, and Zillow Offers. 

In 2019, Zillow’s Consumer Housing Trends Report found that 95% of home sellers were stressed by some part of the sale process, and iBuyers like to emphasize that they take all of the stress off of your shoulders. To that, I say if you hire the right agent who’ll be there from start to finish and make you their top priority, you’ll save thousands of dollars if you list with them. It’s our job to take the stress off of your shoulders too, and we’re by your side all the way until closing. 

Some home sellers share the same valid concerns, such as:

  • Not knowing when their home will sell
  • Whether they’ll sell for the right price
  • How much prep work they’ll have to handle
  • Whether the offer will fall through or not
  • Timing the sale with a new home purchase

If you hire the right agent, though, they’ll take care of these concerns. 

If you have more questions about this topic or have any other real estate needs, don’t hesitate to reach out to me. I’d be happy to help.