Myths about Selling to an iBuyer: This is the third installment in my series about iBuyer companies. My first blog in the series discusses the basics of what an iBuyer is as well as what you need to be cautious about when considering working with one of these companies. The second entry in the series focuses on the differences between different companies and the factors to consider when deciding if an iBuyer offer is right for you.
Here are 4 myths potential sellers often believe about iBuyer companies:
MYTH #1: Selling to an iBuyer is easy
Their ads make it sound like a breeze to work with these companies, but these transactions are often far from seamless. A traditional NC real estate contract has rules about how close to closing a purchase can be canceled. iBuyers, however, use their own contracts that allow for them to walk away from the purchase much closer to the closing date, leaving you, the seller, hanging.
iBuyers make their initial offer based on the information you provide on the website, but that offer is rarely the final purchase price. If you accept the offer, the iBuyer will send a representative to see your home in person and assess the condition of the property. Based on this assessment, the iBuyer will give you a repair estimate, the cost of which they will deduct from their original offer, leaving you with less cash at closing.
MYTH #2: iBuyer companies will buy any house.
Most iBuyer companies are only looking at popular price ranges and houses that aren’t too old. In the Triangle area, most iBuyers will buy houses valued around $400,000 or less.
MYTH #3: iBuyer companies are independent and their offers are fairly confidential.
Some of the companies are partially owned or financially backed by big national builders. There is nothing to prohibit information sharing, so iBuyer companies potentially know more information than what you share on their questionnaire – if you’re already working with a builder on a new home, iBuyers could know specifics of what you’re building and when the house will be completed, etc.
For example, recent data shows that most people who are getting an offer from Zillow’s iBuyer branch aren’t choosing to sell their house to Zillow. However, if you request an offer from Zillow, Zillow now has all your info from the offer questionnaire, which they can then SELL as leads to real estate agents, leading you to get unwanted solicitations.
MYTH #4: iBuyer fees are less than selling with a traditional real estate firm.
The fees associated with selling to an iBuyer vary, but the perceived convenience of selling your home without getting the house ready for market or having any showings comes at a high price that really reduces your bottom line. Fees vary, but as of June 2019, the average is about 8% before repair credits. All fees and repairs considered, the average seller nets 11% less cash with an iBuyer than they would have had they sold their home through a conventional real estate agent.
Myths about Selling to an iBuyer Wrap Up
There are a few situations where I might suggest that a seller sells to an iBuyer company, but I always advise you to retain your own real estate agent to assist in the process. I can help you choose the iBuyer company that best suits your situation and assist you with all the steps between receiving an offer and closing the sale. Call Amy for your Shair of the market! 919-469- 6539.