Selling a home is a huge financial decision—likely one of the largest and most complex you’ll ever make. There’s so much that goes into buying and selling real estate—pricing, listing, showing, home inspections, closing costs, commission fees… wouldn’t it be better if it were as easy as say, selling the clothes you’ve outgrown at a thrift shop?
Enter the iBuyer, the new, simplified way to run real estate. Except, is simple really better? Here’s the lowdown on iBuyer selling and how it compares to traditional real estate.
What is an iBuyer?
Put simply, an iBuyer is a company that makes an instant offer on your home. Unlike real estate companies (like ours) that provide “cash offer” programs, iBuyer offers are made based purely on automated home estimates, no agent involved.
In both the iBuyer situation and the “cash offer” situation, the company makes an offer and, if you accept, will assume ownership of the property with plans to market and resell.
Who Benefits from an iBuyer?
The target of the iBuyer business model is any seller who wants to avoid the hassle of traditional real estate, i.e. staging, showing, home inspections, negotiations, etc. Unlike many companies’ “cash offer” programs, iBuyer companies don’t usually target sellers in financial distress or trying to get rid of distressed properties, and in fact, often won’t accept properties in anything but pristine condition.
How are iBuyer Offers Made?
In any real estate scenario, the value of a home is determined by the selling prices of the homes around it. In other words, the value of your home is based on what buyers are paying for similar homes in your area. In traditional real estate, your agent will analyze data from recently sold homes in your neighborhood and compare them to your home.
Many iBuyer companies argue that the same data could be just as efficiently analyzed by a computer, providing you with an accurate and instantaneous home offer.
Where iBuyer Companies Fall Short
Ultimately, it comes down to price. Instant-offer companies like Opendoor (which first launched the iBuyer phenomenon) may be able to give you a fairly accurate offer based on cold facts, but they definitely overlook a lot of the more personal details that go into home buying and selling. Specifically, a computer won’t be able to put a price tag on the immeasurable details—the afternoon sunlight in your family room, the beautiful mountain view out your kitchen window—that first drew you to your home.
iBuyers Lack that Personal Touch
Another big downside to iBuying… you’re on your own. Your home, the place you’ve lived so many years and made so many memories, has come down to a number. There’s no one to tell you if that’s a fair price or you’re losing out on a lot of money. You don’t get to meet your home’s next owner, to witness their excitement and know you’re making an important impact on their life. You home is a number. It’s your home… and then it’s not.
Plus, if you’re moving somewhere within the same area, you lose out on the potential benefits of working with a local agent, like getting relocation tips, learning about new neighborhoods for your next home, or even borrowing a moving truck.
Prefer to Work with an Agent?
We don’t blame you! The iBuyer model might seem easy, but it leaves a lot out of the real estate experience. So if you’re thinking of selling a home in LA, it’s time to contact Brad Korb Real Estate Group. We’re here to help you price your home, get it ready, and list with ease.