Phoenix Real Estate Agents Are Adapting To iBuyers
When your area hosts three of the largest iBuyer companies with over 1,000 homes bought monthly by iBuyers, what can you, a real estate agent, do about it? Why not take a page from Phoenix real estate agents- you adapt by becoming an iBuyer expert.
Real estate tech expert Mike DelPrete revealed that Phoenix is the largest market for iBuyers with between 5% and 6% of houses in recent months being bought by iBuyers which are then put back up on the market to be resold.
Now, a common complaint about iBuyers is that while their “instant” offer is more convenient in terms of showings, closings and lack of contingencies, they often ask for more repairs to be done resulting in more money spent for the work needed compared to traditional buyers. It's also quite difficult to compare iBuyer offers with the differences between companies. Perhaps more importantly, you look to make less money overall with an iBuyer offer versus a traditional sale.
Phoenix real estate agents seems to have found the sweet spot between these two approaches to selling a home though. By representing the seller, the agent receives and analyzes multiple iBuyer offers. The agent then recommends the best offer to the seller, working and negotiating with the iBuyer based on the homeowner's instructions and best interests. If none of the iBuyer offers are attractive enough, an agent can help the seller decide to go with a traditional sale.
As for the agent's commission? Agents tend to charge less for commission if the home is sold to an iBuyer since there's less work involved. They can also set up an agreement beforehand on the fee the sellers pay the agent for representing them and how much commission they get for selling to an iBuyer or under a traditional sale. In other cases, some iBuyers pay the sellers' agent a a 1% referral fee.
Opendoor and OfferPad, two of three biggest iBuyer companies active in the area along with Zillow Offers, got their start in Phoenix so it doesn't seem to come as a surprise now as to why this is the largest market for iBuyers. As iBuyers continue to become a huge trend in the residential real estate industry, we might as well expect real estate agents in other areas to follow the examples set by the Phoenix agents who have adapted as both iBuyer and traditional home sale experts.
If you have any topics or questions you would like answered, contact The Shanna Day Dream Home Team - we’ll find the answers for you!
Shanna Day Dream Home Team
Keller Williams Realty East Valley