You’ve probably seen some of the various “iBuyers” around town, but do you know what these companies really do? Allow me to explain in this week’s message.
Some of you may have heard of the term “iBuyer,” but aren’t exactly sure what it means. It stands for “instant” or “instant-offer” homebuyers and includes companies such as Opendoor, Offerpad, and Zillow Offers. Today I want to peel back the layers of this onion so that you can get a better idea of how these companies operate.
Essentially, they’re playing a numbers game here. These companies send out emails, mailers, and texts letting you know that they have cash buyers who want to make an offer on your home. Who doesn’t want someone making an instant cash offer on their home?
“Every iBuyer I’ve seen will discount your property by at least 20%.”
Although the prospect of no inspections, showings, and hassle sounds wonderful, here’s the problem: These companies are going to make you an offer that’s 70 cents on the dollar. If your home is worth $200,000, they’re going to offer you $140,000. They’ve got to make money on the purchase, will have to invest money in the home to make some repairs, and have to make profits for themselves and their investors.
Every single one of the iBuyer programs I’ve looked at will discount your property by at least 20%. If you were to work with a Realtor and pay a standard 6% commission, you’d likely be keeping 94% of that money as opposed to less than 80%.
The only time that an instant offer works is if you have a very distressed property and don’t have the money to make the necessary repairs to the home. If that’s the case, we have investors who can make a cash offer as well.
If you have any questions for me about iBuyers 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.
At Keller Williams The Trembley Group, we pride ourselves on being the experts at more than just selling real estate. We are local residents, some of us have been here for a lifetime. The rest of us will be here until the end of time. We love living, working, and playing in the diverse backyard of Coastal Carolina, and look forward to helping you live and love your dreams soon too. Please reach out to us by phone or email for personalized service and one-on-one advice.