Even though iBuyers have been in the real estate industry for a number of years now, there are still many question about whether or not sellers need a local real estate agent in addition to the iBuyer. The iBuying experience isn't as simple as most consumers think it is. We would like to think it's one click and done but there's more to it. With the help of a local real estate expert, your iBuying experience can be a positive one, providing a great financial return.
First of all, what is an iBuyer? An iBuyer is a company you can find online that makes a quick, all-cash offer on your home, and the closing is typically completed in a matter of a few days. If you accept the offer, the iBuyer purchases your home, quickly renovates it and sells it. The following are a few iBuyer companies:
- Redfin Now
- cataLIST Cash Offer
When selling your home you want to make as much money as you can, be charged the least amount to sell it and complete a quick transaction. In addition, you want to work with an honest professional who knows the community you live in. Can you get all of this by working with an iBuyer OR a real estate agent? You might need both.
Consider how much you will be charged in commission or fees. You might be surprised to learn that your local real estate agent will probably charge the lowest fees. iBuyers are typically charging an average of 2% more than agents and there could be additional fees on top of that.
Let's assume you've been given a quote from an iBuyer. You learn that you can sell your house for $400,000 and will pay 7.5% in fees to the iBuyer. At this point, it would be wise to do some research on fees/commission to see if you can a lower percentage. Ask a local agent to break down the commission/fees you'll be paying with an iBuyer vs. the agent, so you can make the most educated decision on selling your home. Here are a few things you should be aware of when considering an iBuyer:
- Home buying standards vary among iBuyers
- The condition of your home can result in higher fees (ex. repairs or upgrades)
- Newer houses are favored by iBuyers
- Sales in your neighborhood, as determined by a local real estate expert, need to be taken into consideration
Standards vary among iBuyers. Fees for making repairs to your home, for example, may be charged in addition to the 7.5% commission you were quoted. A real estate agent can help you wade through the cost of repairs and help you decide if you'd like to take on some of the repairs or let the iBuyer handle them.
When considering an iBuyer offer, do some research to ensure you're getting the best offer for your needs. Consider consulting with a local real estate agent instead of trying to navigate an iBuyer transaction on your own. An agent can help explain what to expect from the iBuyer experience. They can shed light on the value of your home, what homes are selling for in your neighborhood (if they're selling), and they will look out for your best interest. A Realtor® will be honest about whether or not the iBuyer offer is the best offer and, if you choose to accept it, the agent can educate you on what's to come. Consider working with a local agent when selling your home or you may be leaving money on the table.