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.