“Internet Buyer” is a hot new sector of property tech. The iBuyer industry has taken the old mom and pop local investor version of flipping houses and streamlined it with technology systems, software, and processes, all while being backed by Wall Street institutional money instead of private or hard money. This disruption is creating tremendous liquidity while lowering the frictional costs of the transaction.
Selling a house online…really?? So…how does it work? Well, it’s been working great! Opendoor–think Netflix of movie rentals–recently purchased their 50,000th house in less than 5 years, while “We Buy Ugly Houses”–think Blockbuster of movie rentals–is at 85,000 houses in 23 years. But more on that later. Let’s break out the steps of how the process works.
First, you would pick which iBuyer you want to get offers from and fill out the 65 page survey asking questions about your house, questions like when was it last updated or remodeled? What kind of countertops? What type of flooring, cabinets, bedroom count and bath count etc…
It does take a few minutes; you’re doing a large transaction. Uploading as many photos as possible will get you the most accurate offer with lowest re-trade amount. Be patient, and be as honest and forthright as possible. Again, provide photos of as much as possible– and specifically of the issues, repairs and deferred maintenance that you know has been put off. This will help you avoid a large discount or concession once they send the home inspector to verify and inspect the property.
Once you complete the iBuyer survey, they will send you an offer in about 48 hrs or less. If you like the offer, you can sign and accept it and you will be under contract. A very cool feature is that you can cancel this contract with most–not all–iBuyers with 0 penalty. They will schedule the home inspector, and once the inspection is completed, they will ask for concessions for anything that is sub-par or needs attention. These prices, in our experience from our preferred iBuyers, are quite fair, accurate and even cheaper than you could hire someone to do it. Still, if your house doesn’t look like a model home from a new builder, you should expect concessions. Since the offer made is technically sight unseen and bought on the internet–remember iBuyer–they give the highest price possible, hoping your house is immaculate to justify that price.
How do you know which iBuyer is the right one for you and your family and your situation? As more and more iBuyers enter this space, that question is becoming more complex to answer. Many early adapters and iBuyer clients are spending hours upon hours scouring the internet for more iBuyers and re-submitting their house to each one over and over again. Then, they are trying to make sense of the different offers and contracts and how they work, and, more importantly, what is the bottom line.
Enter Exitnest! This is why we were created! Exitnest.com is an aggregator–search engine–of iBuyer data. We are the world’s first cash home buyer search engine! Go to exitnest.com and enter your house information. Then, exitnest.com’s tech will determine which cash home buyers’ criteria your house meets, re-submit your information to those buyers, and provide you with an easy to read, side by side comparison.
iBuyers are here to stay, despite what others say… We don’t believe it’s a fad or a trend…It’s the future…and it’s here now.
Do you remember picking hotels and flights before travel websites and search engines? It was frustrating and overwhelming. Consumers have responded with their love and appreciation of travel search engines, which educate and inform you intuitively of value and costs of amenities and convenience. Well, that’s why Exitnest has applied that model to the iBuyer industry and is anxious to help you find the best iBuyer for your individual situation.
Dave McLennan is the founder and CEO of Exitnest.com, a previous “We Buy Ugly Houses” Franchisee, and a previous top 20 nationwide seller with “We Buy Ugly Houses”.