An iBuyer is not to be confused with internet home listing sites such as Zillow or Trulia. iBuyers, such as OpenDoor and OfferPad, actually purchase your home. And they are not flippers who buy on the cheap, renovate and resell for a hefty profit. This business model is new, evolving and here to stay.
Here’s how iBuyers operate.
- You visit an iBuyer site and enter information about your house such as square footage, number and type of rooms, renovations and condition.
- The iBuyer reviews your information, compares it with comparable sales in your area and comes up with a no-obligation offer which they send to you (typically within 24 hours).
- If you accept the offer, including fees (which can range from 6%-12%) a team is sent out to verify the condition and items in need of repair. If repairs are identified you have the option of taking care of them yourself or having the iBuyer handle them in which case the cost is deducted from the purchase price.
- When the offer and repairs have been finalized the contract is ready to sign.
The most compelling reason to sell your home to an iBuyer is convenience.
- No open houses (you don’t have to make your home look like a model)
- No staging costs.
- No foot traffic through your house (which can be a security concern).
- Avoid the inconvenience and hassle of showing your house.
- Not having to deal with an overly demanding or unreasonable buyer.
- You get to choose your closing date which can be much earlier than a traditional sale.
Selling your house this way is not for everyone.
- You will likely not get as much, i.e. you pay for convenience.
- Not every house receives an offer.
- These services are not yet in every state or city.
My wife and I have been involved in several home transactions. Among the many things that annoyed us, the most aggravating was dealing with unreasonable buyers/sellers.
So my answer to the question is yes, I would consider selling to an iBuyer. Would you?