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- What Are Netting Escrows & How Does It Work?: The Best Guide - January 2, 2024
- The Secret About Prescriptive Easement: Top Guide 1 Must Know - December 4, 2023
- About Home Equity Loans In Texas And How Can One Obtain It - November 27, 2023
About iBuyers
The traditional way of selling your home may require a lot of time and work. The process of selling a home could be intimidating.
Maintaining repairs, making your home presentable, scheduling open houses, going through multiple offers, negotiating with potential homebuyers, and signing the sales contract are just the beginning steps in a home sales process.
If the buyer is applying for a mortgage which happens in most cases will take weeks before the sales transaction is complete.
A faster more efficient way to sell your home is in the new lately known as iBuying. In this post, we will take a look at what is an iBuyer in detail.
What Is An iBuyer?
iBuyer, also known as the instant buyer, is a company or group that uses the latest technology to buy your home for sale.
These companies intend to offer cash to the seller and make the process as easy as possible.
You don’t have to go through the hassles of prepping up your home for showing or marketing when you are selling your property to an iBuyer.
They will care of the marketing and staging of your property once they purchase it from you.
Usually, you will receive cash for the property that you have listed on these iBuyer portals within a few days.
Once the purchase transaction is complete, these iBuyers will list the property and re-sell it to appropriate buyers.
How Does iBuying Work?
In simple words, iBuyer is a company that has enough funds to buy houses in cash. To create an offer, iBuyers often rely on comparable homes in your local real estate market, also known as “comps”, similar to what a real estate agent will use to acquire a list price(or offer price) on the house.
Once an iBuyer buys a home, in many cases, these companies will make basic repairs to increase the resale price and list the property on the Multiple Listing Service (MLS).
Some iBuyers pay other real estate agents to sell their homes, while others work with their in-house listing agents.
Once these properties are listed on MLS, there is a description mentioning that these are sold by an iBuyer.
What Are The Pros and Cons Of Using iBuyer?
Just like any other process selling your property also comes with its benefits and drawbacks
Pros:
Speed: According to recent data from Realtor.com, the average home spends 43 days on the market from the time it’s listed to the time the seller closes on the sale. Selling to an iBuyer is a quick process that can be done in a matter of days without spending a lot of time finding a suitable buyer.
Convenience: The traditional way of selling your home involves many disadvantages, such as keeping your home clean and leaving it, often at the last minute, during home inspections and open houses. iBuyers eliminates that problem. Getting an offer from an iBuyer can take as little as a few clicks on your computer or smartphone.
Control and Flexibility: Although iBuying deals are usually quick, that doesn’t mean they have to be if you want to stay for a while at home that you are selling.
Conviction: Selling your home to a traditional buyer always involves certain risks and uncertainties. There are many reasons why the deal may not go through. For example, buyers may be forced to walk away from the deal if they do not qualify for a mortgage or if the appraised value comes lower than the asking price and they are unable to pay the difference out of pocket.
Cons:
Limited profit: iBuyers buy the property from the seller to make a profit just like any other investor or business. This results in sellers making considerably lower profits in returns of speed and convenience.
Limited Availability: Currently, iBuying is still a new way of selling properties and many individuals are testing it. Many iBuyers only operate in certain cities. One study found that iBuying thrives in Sun Belt cities including DFW, Atlanta, and Phoenix where the home inventory is fresh, affordable, and age-matched, which leads to reliable comps.
Hence, it could be difficult to find iBuyers in the area where you are property is located.
Conclusion
The iBuyer is one of the great options for both sellers and buyers. It is a quick, more flexible, and affordable option compared to the traditional home sale process.
Not only your process is quick it also helps you save money that you would otherwise pay to hire a real estate agent.
Make sure you understand the drawbacks of using iBuyers before deciding to sell your home to one.
