Do you want to sell a house in a super-convenient way? An iBuyer can help! iBuyer is a new type of company that’s been around for just a decade, but they offer promising alternatives that home sellers love.
What to Know About iBuyers when You Sell a House
What is an iBuyer?
An iBuyer is a company that buys homes from sellers at a reasonable price and resells the property for profit. They are different from house flippers because iBuyers only get properties that are in excellent condition and require little fixes. Their goal is to offer a convenient and fast selling process, which means they don’t want to spend time renovating. For the same reason, they also don’t negotiate the price they offer to the sellers.
How to Sell a House through an iBuyer
Using an iBuyer could be perfect if you want to sell a home quickly regardless of lesser profit. What you should do is to find a reliable iBuyer that operates in your local area, but remember that iBuyers aren’t that common yet.
After finding a reputable iBuyer, you only need to visit their website. Typically you’ll fill out a form that asks for your home address and other important information about the property. You’ll likely get an offer within 24 and 48 hours.
If the deal goes through, then you’ll sell your property in just a few days. This eliminates the traditional selling process that can last a month or two, in most cases.
Understand the Automated Valuation Model
The Automated Valuation Model (AVM) is the standard guide iBuyers use when pricing a home. AVM works by estimating a property’s market value and therefore determining what an iBuyer will offer. This price will be below what you’d get through the traditional realtor route, because the iBuyer wants to make a profit after your quick sale.
Understanding Possible Income
In a nutshell, you’d earn less when working with an iBuyer than going through the traditional process. Why? Because iBuyers charge around 6 to 8% fees off the overall sales. Yes, they’d charge you for the home-selling convenience that they offer.
Now, remember that the AVM often puts a lower price tag on a house. After selling a property at a low price, that’s when the iBuyer charges would apply. That further pulls down the profit you can rake from selling your property.
Whereas when you go through the traditional process, you can sell your home at the best possible price minus the 6% charge for you and your buyer’s real estate agents.
Home Sellers that Usually Work with iBuyers
Here the types of home sellers that commonly sell their properties through iBuyers. If you’re one of these, then this option could be perfect for you.
Sellers who want to Sell Quickly
There are many reasons for people to want a quick home-selling process despite receiving lower profits. A good example is when they need to move to a new place quickly because of job relocation or other immediate obligations. The traditional house selling process would not allow enough time for their needs.
Sellers who don’t want to work with Real Estate Agents
Of course, the best realtors bring a ton of benefits to their client, but some sellers don’t want to work with them for any number of reasons. With an iBuyer, you won’t need an agent.
Sellers who want to Simultaneously Buy a House
Many sellers want or need to simultaneously buy a home while selling. Often, they make an offer on a home and promise to buy it after selling their property. This method doesn’t work well in a hot seller’s market, where there are plenty of buyers and no reason to wait.
iBuyers offer special options for this route:
- They can buy your new home and keep the sale profits from your former home as payment.
- Or you can let the iBuyer pay for your new home and lease it to you while you traditionally sell your old home. This option lets you keep the profits from the sale of your former home. However, if you fail to sell the old home and the lease ends, the iBuyer would take the property from you and sell it.
Home Staging isn’t Necessary
You don’t need to stage your home or commit to an open house, because the sale will not be made to the public under your ownership.
Is an iBuyer right for you?
An iBuyer is excellent help if you want to quickly sell your home without the need to make the highest ROI. If you would like to go this route, research iBuyers in your area to begin the process. Remember that your house needs to be in great condition to get an offer, as iBuyers are not house flippers. Enjoy selling your property quickly and efficiently!