If you’ve been thinking about selling your home, and have looked into your options at all, chances are you’ve seen information about iBuying. Some top companies like Open Door and Zillow are offering this option to sellers, advertising it as a quick guaranteed sale with instant offers, and in cash. This may seem like a smart idea for sellers…but there’s more to learn about iBuyers and other, better, options for sellers to still consider.
So, what exactly is iBuying? iBuying is when a company buys your home, typically using prices that compare to other homes in your area that have recently sold. Once they purchase your home, they often do a quick renovation, repairing things and making updates, and then put the home back on the market for resale to turn a profit. Essentially, when you work with an iBuyer, you end up selling your home at a wholesale price rather than a retail price.
Selling to an iBuyer does have its advantages. If you’re in a bind and need to sell quickly, it may be your best option. It can almost guarantee you a sale of your home, plus it’s speedy and convenient.
However, something you want to keep in mind is that iBuyers can be selective about the homes they purchase, like homes that are in decent shape and fit into a specific price range.
Something else to keep in mind is that using an iBuyer can also end up costing you more money and gaining you less profit on your home. In an article from realtor.com, they mention that a study from Collateral Analytics found that on average, home sellers will pay between 13% and 15% more in fees to an iBuyer than they would to a traditional listing agent.
The benefit of working with a realtor is knowing they will work with you to receive top dollar on your home. Plus, the average listing fee is between 6% and 8%. They can also advise you on what updates need to be made before you sell to help you turn a profit.
iBuying is still new to the scene, so it’s smart to do your research and know all your options when selling your home. Let us know if you would like to discuss this further or learn more about how we can help you sell your home.