You have, no doubt, seen the real-estate commercials, “Sell Your Home as Is,” “We’ll Buy Your Property Fast,” and “Sell Your Home for Cash Now,” all touting easy-peasy methods to sell your home without a Realtor.
These ads are the work of iBuyers (instant buyers)—companies that use technology and algorithms, such as an Automated Valuation Model (AVM), instead of a local and experienced salesperson, to price, buy, and sell your home. Their hook is that they will make you a quick cash offer (often, within 24 hours), followed by a speedy closing. The iBuyer models generally include these factors:
- Comparable recent sales in your area
- Analysis from in-house experts
- Proprietary algorithms, using data sets from your market
- Your home’s overall condition, including unique features or finishes
But don’t expect them to visit your home, although some iBuyers do offer an initial offer price, as well as an adjusted offer price, wherein they may actually send an appraiser to your home.
Usually, unlike your local Realtor, their valuation model is pretty cut and dried. When real estate agents prepare a Comparative Market Analysis, they begin with data on listings and sales, and the computer spits out a recommended price. But the real price is set when the agent visits your home, to “kick the tires.” And in many cases, you can expect that recommended price to go up or down, depending on the agent’s viewpoint of your home’s condition and location.
But iBuyers are gaining traction in the competitive real estate market. First launched by Zillow in Phoenix, Arizona, in 2018, iBuyers now command an average of 1% of the market nationwide. According to millionacres.com, Atlanta, Georgia, is #1 in iBuying activity (1,987 transactions), followed by Phoenix (1,744) and the Dallas-Fort Worth (1,321) markets. In the second quarter of 2021, Zillow reported that 15,028 homes across the country were bought by iBuyers.
Sounds like a great deal, right? And in many cases, using an iBuyer is exactly what you may need. But before you latch on to this method of selling your home, there are a few things you need to know about the iBuying industry/process.
Read the feature article in this month’s magazine now to learn all about this emerging online-home-buying trend.
First, you get a complete list—with explanations and examples—of the pros and cons of selling your house to an iBuyer. And you get the detailed differences between an iBuyer, house flipper, and real-estate investor.
If you’re considering selling your home, you should read this article to learn:
- When to Sell to an iBuyer: Get 5 real-life situations when selling to an iBuyer might make sense.
- What to Expect from the iBuying Process: A brief description of how the process works, so you won’t be surprised.
- Top 5 iBuyers in the Marketplace: Get all the details about the top five players in this space.
When you read this article in the Why You May Just Want to Use a Realtor to Sell Your Home: Selling a home to an iBuyer isn’t for everyone! Should you use the traditional house-selling method and hire a Realtor? What are the six key services that distinguish a Realtor from an iBuyer? Get the answers in this article!
This latest issue of our Magazine is ready for you to access now, to discover everything you need to know about selling your home online … and much more. Read it now!