Is it a good idea to sell to an iBuyer? Here’s what you need to know.
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Essentially, iBuyers are companies that purchase homes directly from the owner. Their value proposition is pretty cool: They say they will pay you a fair market value for the house, you will get to skip the uncertainty and hassle of the traditional home-selling process (such as staging your home, allowing showings, worrying about inspection results and buyers’ financing contingencies, etc), and you get to pick your closing date! How awesome is that, right?
But there is only one catch.
The catch is that it will cost you! The company that is purchasing your home is in business for one reason only—to make profit. As a homeowner, you will always net much less money if you choose to sell your home to an iBuyer instead of listing it for sale with an agent. The question is: how much less?
There are several big players on the market now—Opendoor, OfferPad, Perch, and now Zillow Instant Offers. None of these companies are really transparent with their fees and value estimation formula. However, since I have had the privilege to help a number of sellers who, at one time, were considering to accept one of these instant offers but decided to list and sell with me, I have some insight to share with you.
Based on my personal data, my calculations show that you will net an average of 11% less if you sell your home to an iBuyer.
Let’s put it in dollar amounts to help you understand. If your home is worth $350,000, you will net somewhere around $38,500 less if you decide to sell it to an iBuyer instead of listing it with me. I personally think that it is a pretty high convenience fee, but you be the judge.
My advice is this: If you are seriously considering to accept an offer from an Ibuyer, please give me an opportunity to offer an alternative. I can be pretty resourceful when it comes to accommodating your wants and preferences, and it’s my promise to you that I will always net you more money when all is said and done.
All you have to do is reach out to me. I’d be glad to help you!
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