iBuyers – Are They The Right Choice For Your Home Sale?

Dated: 12/03/2019

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iBuyers – Are They The Right Choice For Your Home Sale?

 

Ever traded in your car at a local new car dealership? They assess your old car, give you a price they’ll take it off your hands for. Did you know that Used Car sales are where a car dealer makes most of their money? Buy LOW, sell high after doing some deferred maintenance and shine-up to it.

When you were told the trade-in offer, did you get to refute it and bargain for a higher price? If so, where do you think that loss of profit went for the dealer?

That new car you’re buying, how do you know what it really should cost? Did the loss you bargained for on the trade-in get tacked on here? How do you get the best deal? How do you know it IS the best deal? Who’s looking out for you? The Dealer? You’re on your own there.


What’s the definition of an iBuyer? Realtor.com says this:

 Selling real estate to an iBuyer, though, is typically a…streamlined transaction…big downside of iBuying is that all this convenience comes at a price. Selling to an iBuyer often means you make less money on your sale than through the traditional route…”

There are different levels and types of iBuyers; some will swap homes with you or buy another one you like that you can lease until you sell yours. Some just buy yours cheap (and still charge fees to do so on top of the low bid they’ll give you). They are a BUSINESS, out to make a profit. And it’s usually YOUR profit they are pocketing.

 Pros And Cons – In A Nutshell

 Pros:

Speed – iBuyers will generally buy your home very quickly, sometimes in a couple weeks. They WILL need to have it inspected, so that might take a bit of time.

Convenience – No need to have buyers walking through your home, or agents sending offers you might not like. Just sign the bottom line.

Flexibility – Some iBuyer types will let you choose your closing date so you can move when you find it most convenient.

Certainty – You KNOW you have a buyer. It just may not be at the best price for you.

 

Cons:

Low or No Profit – iBuying is a BUSINESS. They are there to take YOUR profit by buying low and selling high. You will NOT get market value, because if they paid that, how would THEY make any money? With real estate agents looking out for THEIR Buyers, those agents won’t let a Buyer overpay for a property that simply had some paint and new flooring slapped on, then listed over market.

Lack of Support – Like the car dealer example, do you think the iBuyer is looking out for your best interests? Like a Real estate agent would and is ethically bound to do? If you do, I have some oceanfront property in Arizona to sell you.

 


So how do you get around feeling like you need to give your home away?

 

You’re not alone in this when you work with a great real estate agent. We can help you make decisions in your best interest to get this done:

Remodel – This is what the iBuyer is going to do a minimal amount of, then turn around and sell it for more than they paid you. You can do that, too! There are programs that allow you to pay for the remodeling at the closing table, if you prefer. Or simply work with a real estate agent who can tell you what updates will bring you the biggest and fastest success on your home, and pay in advance, knowing you’ll likely recoup the expenses at the sale.

Staging – Maybe you just have ‘too much stuff’. Buyers can’t see around personal furniture, artwork, and clutter. Have your real estate agent help you to decide what stays and what goes and rent a storage unit. You’ll need to pack this away anyhow when you move, no matter who buys your home.

Pre-Foreclosure – Talk with your lienholder about your situation and tell them you’re getting ready to sell the home to pay off the debt. Lenders don’t generally like to have these foreclosed homes sitting around because, if the debt is large enough, they know they won’t get it all back.

Curb Appeal – I know it’s a worn out term, but it is REAL! Which would you choose?

House exterior before and after

 Bridge Loans - A bridge loan may let you buy a new house before selling your old one. Bridge loans have high interest rates, require 20% equity and work best in fast-moving markets. You want to use that only if you MUST make that move now. Make sure your current home is not overpriced when your agent lists it. Listen to their pricing advice to get it sold quickly.

 


These are but a few ways to help you make the ‘traditional’ and more profitable way to sell your home faster, easier, and less time-consuming. I know that we are now a society that wants Instant Results, but why hurt your bottom line just to speed up a process when perhaps a little time is what you need to say goodbye to the property you and your family have loved these many years?

 

Why Use a Realtor?

I still don’t understand why Buyers and Seller are still scared to approach a Realtor for help. We have been vilified for far too long and at the expense of the people we are here to serve. The National Association Of Realtors (and our local Realtor boards) has a lengthy Code Of Ethics that we MUST follow (or face fines and even loss of license) to assure we treat our clients as well as they should be. Here’s an excerpt from the Code:

 When representing a buyer, seller, landlord, tenant, or other client as an agent, Realtors® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve Realtors® of their obligation to treat all parties honestly.”

Of course we want to be paid, but we also got into this field to help those who need help with this process. We love houses and helping. We know you need someone looking out for you. This is what we do every day. Let us help you get the profit on your home you deserve.

 

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Hilary Meader

You’re ready to buy or sell your home, but that means using a real estate agent. I consider myself an 'UnRealtor' - I'm in this for YOUR happiness. Professional yet personable. Let's talk soon! So....

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