Seller Beware of iBuyer

Real Estate Agent with HomeSmart

                       Seller Beware of iBuyer
Is this really a benefit for sellers or is it another gimmick?
Who really benefits? The Seller or the Investor?
I can only speak from the stories I know and my experience of being in the Real Estate business since 1985.
There's no one answer to the iBuyer market, but I will say beware, be informed, and do your homework.
1) Are you selling at market value or below?
2) What are your costs?
3) What is your time frame?
4) Why is the iBuyer buying your home?
5) Are you paying commission?
6) Are you paying a service charge?
7) What title costs are you paying?
8) Are you paying for repairs?
9) Are you picking your title company?
10) Are you working with a Licensed Professional?
In most cases the iBuyer will say you are not paying commission, but there is a service charge, transaction fee? What? Yes a service charge/transaction fee in many cases higher than a commission.
Repairs may or may not be paid by the iBuyer, or it just comes off the price. Closing costs are often absorbed by the seller along with other miscellaneous charges that add up.
I will not say that you should not sell to an iBuyer, I am sure there may be situations where it could be a good idea. I will also say that the old saying if it sounds too good to be true it most likely is.

ibuyers generally are not licensed or required to have a criminal background check, therefore do not have to meet the ethical standards of Real Estate Agents. ibuyers are just in for the money and the more they can make the better.
The ibuyers generally do not buy homes at Market value, if they did they could not make a profit In a nutshell they buy at wholesale price, so they can have a margin for profit. This means they are not looking out for your best interest when it comes to your final net funds.
I would suggest you find a reliable Realtor or two and have a market analysis on your home.  A Real Estate Agent can be a valuable resource for you. Comparing ibuyer  value VS market value is an eye-opener for sellers. As a Real Estate Agent  I have reliable vendors to do any work that needs to be done so you can obtain top dollar for your home, many agents have vendor connections to help you sell your home for top dollar.
There are many What's my Home Worth websites out there, I use one that has been the most accurate for me. Non the less, many factors need to be considered, condition, location and market conditions. Call a Professional Real Estate Agent.
Know your options, what is your net bottom line? Your final net is what you should care about not the sales price.
A Realtor is a member of the National Association of Realtors and must have continues training every two years. To be licensed a criminal background check is required. Realtors also are to abide by ethical and fiduciary duties to their clients. Not all Real Estate Agents's are Realtors so you need to do your homework. iBuyer's are not licensed most of the time. Pick a Realtor who is recommended or interview two or three before you hire a Real Estate Agent.
             Stats show Homeowners make more money when selling through a Realtor.  Realtor LOgo
Sara Pichelmann



Comments (2)

Steffy Hristova
HomeSmart Elite Group Tempe AZ Tel: 480-966-9353 - Tempe, AZ
Tempe AZ Realtor - Your Home Close to Your Work!

Hi Sara, welcome to Active Rain! I look forward to reading your posts!

Jun 29, 2019 11:29 AM
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

Without a doubt, there are pros and cons to iBuyers. Much like the "We Buy Ugly Houses" folks they serve a niche market of those who need to sell their home fast and aren't necessarily interested in maximizing their profit.

Apr 19, 2020 11:49 AM

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