What is an iBuyer? How do iBuyers work?
iBuyers are relatively new to the real estate world, but basically, an iBuyer is a company that gives you an immediate cash offer on your home.
Prominent iBuyer companies like Offerpad and Knock have reached into different parts of the market by offering the convenience of a quick home sale, albeit at a lower price. On the residential selling side, my job as a Realtor is still to prepare my clients’ homes to sell for the most money possible on the open market.
Think of it as the difference between selling wholesale versus selling at retail price. iBuyers want to purchase your property at a wholesale price so they can rent it out or sell it at a profit. We Realtors, meanwhile, want to sell your home at the top of the market. With iBuyers, you can skip the process of preparing your home for the market and simply pick your closing date. A Realtor, though, can bring as many buyers to your home as needed to get the full retail price.
Is one better than the other? The answer depends. If, for instance, you’re sick in bed and unable to make any repairs and you know your property is a mess, but you need the cash in hand for an important surgery, your mindset will be different than someone who’s able-bodied to prepare their home for the market in order to maximize its value.
In other words, each process offers a different value depending on your circumstances. If you’re thinking of selling to an iBuyer, make sure you shop around and compare your options. And don’t hesitate to reach out to us because we know plenty of investors who’d be interested in your home.
As always, if you have any questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.