“iBuyer” is a term more frequently heard in the real estate world these days, and some might wonder, “What is an iBuyer?”, iBuyer” stands for “Instant Buyer” or “Internet Buyer,” meaning they usually give you a credible offer without physically seeing your house first.
How can they provide an offer with any level of certainty without seeing your house?
What may be a very big financial transaction for you, yours will be one of the few hundred homes they will buy this month. iBuyers deal very little with emotion and focus on the numbers of the deals.
As this is a new concept for many people, let’s discuss and go further into the Top 5 Reasons to Use an iBuyer versus going the traditional route:
When selling your home to an iBuyer, you don’t have to worry about keeping your house clean because you don’t need to show your house to multiple potential buyers. You only need to show it once.
Even though iBuyers make you an offer without seeing your home, to complete the purchase, they will need to inspect the property to verify the condition.
On top of these very obvious conveniences mentioned, we can also include not having to kennel any pets for these multiple showings that would occur should you sell the traditional way.
The iBuyer may ask you to take a discount if there are repairs needing to be made, but they usually don’t ask you to make the repairs yourself if there are any needed.
Many iBuyers are creating their own title companies to make the whole transaction run smoother and more efficient, eliminating communication delays and miscommunications.
As convenient as it is to sell to any one particular iBuyer, it can be incredibly confusing when factoring in the forty to fifty other options on the table. ExitNest has made it extremely convenient to view and analyze the different iBuyers and their offers on an easy to read, side-by-side comparison.
Just like Expedia, Travelocity, and Orbitz made the travel industry easier and more efficient, ExitNest aims to do the same for the real estate industry. (There’s our “shameless plug” for you!)
Many iBuyers can close, in as little as seven to fourteen days, but they will still let you pick the closing date, whether that’s seven days or ninety days from entering the contract.
This can be really helpful in planning your next step in your real estate journey. These plans might include scheduling movers/moving trucks, changing utilities, and needing money from the closing to pay for the move.
For people with busy schedules, this can be a God-send. Everything is done online utilizing electronic signatures to complete the necessary paperwork making the whole process run more smoothly and quickly.
It seems to be more and more the iBuyers’ long-term mission to complete a transaction from beginning to end in less than 24 hours. Wouldn’t that be transformative to the real estate industry?
When using an iBuyer, your house statistics and photos are not broadcasted to the public through the Multiple Listing Service or on Zillow. No potential buyer would be influenced by your affluence, or lack thereof, or religious beliefs, etc.
Also, listing photos of the interior of your house could potentially invite thieves (however unlikely a possibility that is) if listed the traditional way.
4. Post Possession
Several iBuyers have the option of what is called “Post Possession” where the seller is allowed to stay in their house for a period of time after the transaction has been closed.
This can be really helpful in situations that require coordinating moving and closing your next property.
There are some iBuyers who are willing to let you stay indefinitely (www.easyknock.com or www.sparrownow.com) and others that are more like a bank that will allow you to access your equity and stay in your house.
With iBuyers having multi-billion dollar valuations or hedge fund backing.
There’s really no question of whether or not the deal will go through after they’ve inspected the property physically and you’ve both come to an agreement on final payment based on the presence of needed repairs.
No emotions or cold feet involved. It’s math to them. If the numbers work, they go for it. They won’t lose their job and they won’t buy a new car and mess up their financing two days before closing (which happens way more often than you’d believe).
As enticing as all of this sounds, it’s not for everybody as there are a couple of downsides to consider:
You have no personal representation as the seller if you go directly to the iBuyer without using a service like ExitNest. There is no charge and the iBuyer will not offer you less if you choose to retain representation.
The second downside is your total take-home amount might be less than it would be if you listed it the traditional way.
Many iBuyers have the goal of getting the home seller more than what they would get traditionally, but we don’t see that happening…yet. It’s a work in progress.
The seller needs to decide
if taking slightly less for your home is worth the benefits that would come from choosing an iBuyer.
These top five reasons are not in any particular order because selling a home is very “situational”. If you lose your job or your life situation changes, selling your house fast might be your top priority.
In conclusion, sellers are weighing these options and are flocking to iBuyers to sell their homes in droves. It looks like in one way or another, IBuyers are here to stay. Wall Street is in the real estate business now.
Did we miss anything on this list? Let us know! Let’s get the conversation going.