iBuyers, are they worth it?

By
Real Estate Agent with Atlanta Communities 303302

First of all what is an iBuyer? They are the large national firms telling potential sellers that they will buy their home and won't even have to place it on the market. They are running TV commercials showing smiling clients announcing the fact that they received a competitive offer and accepted it right away! No showings, open houses, or muss and fuss.

Sounds great, right? Honestly, for some folks it is. Maybe someone that needs to sell an inherited home and doesn't want to bother with marketing the home. They just want to quickly cash out.

Well, after some research on how well these deals end up, I am here to report some interesting facts. These easy deals can be quite expensive for the homeowner. After fees, commissions, repair requests, and closing costs, we are seeing about a $25,000 - $45,000 loss as compared to a basic Real Estate Brokerage sale, on a $450,000 home. Even an $81,000 property would cost the seller as much as $7,000 more than a regular brokerage sale.

We have developed a form that, based on the seller's home value, can estimate the costs incurred for them over and above a brokerage sale, for 3 of the most common iBuyers. Hopefully we can save our clients from the "Too good to be true" scenario.

Posted by

Peter den Boer, Associate Broker, Realtor

Atlanta Communities Real estate Brokerage

 

Ph. 770.713.1545

www.denboerhomes.com

 

I write about daily life as a Realtor in the Towne Lake Community in Woodstock Georgia.

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Rainmaker
1,964,897
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Peter - this is so correct.  If it sounds too good to be true it is.

Jul 25, 2019 05:39 AM #1
Ambassador
2,723,872
Liz and Bill Spear
RE/MAX Elite 513.520.5305 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

I find these iBuyer sales similar in some aspects to the "guaranteed sales programs" some brokerages offer.  Yes, it may make sense for the right client, but at the cost of leaving some serious money on the table.  Bill

Jul 25, 2019 07:42 AM #2
Rainmaker
1,550,662
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

I did some research on this for a client a while back, and my findings were in line with yours. They may say "no commission" but they replace it with a different fee. Then they add other costs and fees until the homeowner is losing serious money.

But of course they do. They buy those homes for resale, and they aren't doing it for fun. They're doing it to make money.

Jul 25, 2019 08:09 AM #3
Rainmaker
3,664,613
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Peter. There is no free lunch although many folks still look for it.

Jul 25, 2019 09:25 AM #4
Rainmaker
2,575,015
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

We are seeing more advertising from those kinds of enterprises here in the Sacramento area too.  I receive weekly mailings from one firm.  Any time a seller sells their home without it being on the open market, they are at risk of not having an opportunity for the highest and best offer.

Jul 27, 2019 04:56 PM #5
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Peter den Boer

MBA,GRI, Associate Broker, Realtor
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