Should You Sell to an iBuyer?

Selling a home can be very challenging. It’s no wonder that many homeowners look for alternatives that make the process easier. A popular option that many people are using these days is called iBuying. This is basically a process where real estate tech companies market your property on their platform. The goal is to attract buyers that will make instantly make an offer for your property.

What Are Some of the Most Popular iBuying Companies?

Some of the companies known as iBuyers include Zillow, Opendoor, and Offerpad. The idea behind these companies is simple. It allows homeowners to bypass the process of working with a realtor. In addition, listing and selling on these company platforms is easier than trying to find a good real estate agent, finding a contractor for repairs, and going back and forth with potential buyers.

All you have to do is take photos of your home and answer a questionnaire. Once your home listing is approved, you’ll start to get offers from iBuyers. If you decide to accept one of the offers, Zillow, Opendoor, or Offerpad will send in a professional to assess your home. They’ll evaluate what kind of repairs your home will need and overlook the entire project.

Why Selling to a iBuyer is a Mistake

While the whole idea sounds like a dream come true, selling to an iBuyer can be a costly mistake. Using these company platforms can cost you anywhere from 15 percent to 30 percent of your property’s value. These company platform do not put in the time to really assess the true value of your home. While they do provide you with estimates, based on the value of homes in your area, it is not a thorough analysis.

Working with a good real estate agent that knows how to price your home properly is certainly the way to go. They look at every possible factor that can help you get a better price for your property. If you think about it, it’s very unreliable to base the price of your home on some kind of algorithm. On top of that, real estate agents have established relationships. They can help connect you with buyers that are willing to pay the price that you’re looking for.

Then there’s the relationships they have with contractors. They can connect you with contractors that are experienced, reliable, and trustworthy. You can probably save thousands alone by working with the right contractor that will not overcharge you for repairs or improvements.

And of course, an agent can also negotiate on your behalf to help you get the best price. The bottom line is that there is an immense advantage you get by working with a good realtor. While it does mean you have to get more involved with the process, it is well worth the effort.

While the idea of selling to an iBuyer looks appealing to the average homeowner, it’s important to understand that there are some serious downsides of using these online real estate platforms. Homeowners can get distracted by the convenience of these platforms and end up selling their property for far less than they could have gotten.