Instant buyers, or iBuyers, represent one of the most recent revolutionary approaches in how sellers are able to sell their real estate. Billions of dollars have been invested into iBuying since 2014, and the field is led by ambitious, well-funded, and well-equipped disruptors. Zillow, Red Fin and others aim to transform how consumers buy and sell houses – shaking up this process as they become more involved in the actual transaction of real estate, versus providing simply a platform for property searches.
iBuyer companies use proprietary algorithms to value homes and make cash offers on properties that they feel will be easy to resell at a profit. With iBuying, sellers get a cash offer within a day or so, and the transactions will close in just a few days. All iBuyers charge a fee for their services which averages between 6-8% of the home value. This is often more than traditional real estate agents’ commissions but delivers immediate results with minimal contingencies, which may be a priority for the seller… with just a few clicks sellers get an instant offer!
Realtors can assist clients in selecting which iBuyer company is best for them because not all iBuyers offer the same services. By becoming familiar with the different companies and the process, Realtors can work with an iBuyer company to manage parts of the transaction in a way that benefits all parties. In general, iBuying is a convenient time-saver that bypasses some of the trickier aspects of a traditional transaction that involves building inspections, financing, surveying of the property, etc.
In this strong sellers’ market, iBuying is not a popular tool but as everyone knows, real estate is cyclical and the only constant thing is change… Even in this buoyant market, iBuying is an application that appeals to some, and we will be about it in the future!