By now you have likely heard the term iBuyer. The commercials make it seem like such an easy way to sell your home . . .
BUT BEWARE!
There are so many “tech” companies entering the real estate business and most are offering their own version of an iBuyer Program. Briefly, an iBuyer program targets those homeowners that do not want to go through the traditional home selling process. They promote that you, the seller, will get an all cash offer and get to pick when they want to close.
How does the system actually work? Typically, the homeowner will go onto one of the many iBuyer sites. You, the homeowner will input all of the pertinent information about the home. You will also be required to take pictures and upload them on their website. Then within 24 – 48 hours you will get your offer! Wow! That was easy!
Generally, the offer is low, I mean, they got to try, right? But, let’s say you are OK with that price, the next step is they set an appointment up for someone local to come out to personally verify that the information you inputted is correct. While there, they are also going to take note of any repairs or updates that will have to be done to the home before they can resell it and then adjust their offer accordingly. How do you think that’s going to go? Are the odds better that they will raise the offer, or lower it?
Again, let’s just say you are happy with their “adjusted” offer. Then you get to pick the best day for you to close and you will get your check and off you go.
Wow! So easy . . . you get a check for that FULL offer price, right? Wrong! Of course they need to make money, so what is it going to cost you?
Each iBuyer program is a little different. They all claim that you don’t pay a commission, but there is a “service charge” that is typically between 6 to 13%! Most require you to use their services, like escrow and title, I don’t know what they charge for that! And one of the programs requires you to use their service to purchase your next home. If not, that will be another 1%!
Now to be fair, you don’t have to clean the house or declutter it and you get to pick your day to close, but at what cost?
The typical commissions in San Diego are a total of 5%, with 2.5% going to the list side and 2.5% going to the buy side. Let that sink in for a moment – 5 % or 6 - 13%! But at least you don’t have to clean your house, right?
First, they start with a lower offer price, then you will pay anywhere from 6 – 13%, almost DOUBLE to what local agents charge and since your home is never exposed to the market you will never know exactly how much the open market would have paid for your home.
You will get an idea when the iBuyer cleans it up and puts it back on the market at a higher price. Here’s the best part, it’s a win-win for them because if you don’t take their offer, they now have all your information to turn around and sell to, you guessed it, realtors, so be prepared for your phone to start ringing off the wall!
Now, there may be a good reason for you to accept an ALL cash offer, That’s why here One World Realty, we offer multiple ways to sell your home, including ALL cash with a quick close.
It’s your home, your money and YOUR Call! Do your homework, Knowledge is Power and more money!
Get Our Ultimate Buyer’s Guide here!!
Don’t hesitate to REACH OUT TO ME for Real Estate advice or if you’re thinking about buying or selling!
