PLANNING ON SELLING? Instant Offers and iBuyers...Good for Sellers or Not?
First what is an iBuyer? IBuyers are companies that have sprouted up in limited markets across the country to create different ways to sell your property. They basically use quick automated valuation models to make quick offers on homes, allowing them to close in a much faster than typical time frame, and then resell them. From a sellers standpoint, it can eliminate some hassle and uncertainty, but with a high "transaction fees" ranging from 7-14%, and the likelihood they will sell the home for more than they paid you for it, you are simply exchanging that smooth and quick transaction for a portion of your equity.
It may be tempting to consider such an offer, but keep in mind that this is a straight numbers game. An analysis on one company's transactions showed they were selling homes at an average 5.5% appreciation, on top of their transaction fee. That's a lot money to leave on the table for a little convenience.
As always, it is important to read the fine print and understand what you are agreeing to. If you would like more information on this or get approached by someone willing to do this, call me first at 970-631-7111 and let's go over the fees.