Many of our clients ask, “What exactly is an iBuyer?” In this post, we aim to shed a little light on the subject to help you determine if working with an iBuyer is beneficial. There are many things to consider – pros and cons.
What Is An iBuyer?
An iBuyer is a real estate company that buys properties using technology to make you an almost instant offer (online) for your house, sight unseen. Typically you visit their website, enter some info about your home, and then they very quickly make you an offer. (The “i” in iBuyer means instant.) After they purchase your home, they sell it usually at a modest profit. It can be a great option for some people, depending on your financial situation and circumstances. But their fees can be higher than other methods of selling a home. It’s just good to know the details before you go down the path!
How Are Their Offers Determined?
Along with the information you provide them about your house, iBuyers use proprietary software using an Automated Valuation Model, or AVM, to process a lot of data and determine what they can offer for your home. This is different than the analysis done by traditional agents and property buyers who use a Comparative Market Analysis (CMA) which incorporates the data of recently sold homes in your area to determine what your house is currently worth. Both are reasonable tools, but the CMA allows more flexibility as a live person (like a realtor or professional investor) can often see things that make your house unique or marketable that a computer program just isn’t going to be able to compute. So you may not get as much for your home with an iBuyer. In a way, you gain speed of sale but potentially sacrifice a better sales price and more cash in your bank account.
What Do They Charge?
The costs of working with an iBuyer can be steeper than selling your home in more traditional ways. According to Marketwatch, depending on the company, the fees can vary but be aware some iBuyers will charge up to 11.5% in commissions and fees. This is just about double what real estate agents will charge in commissions. Another thing to keep in mind is the iBuyer offer may be lower than what you would be able to get on the MLS. If you need to sell your house fast, for a good price, without any costs or fees whatsoever, Anna Buys Houses will buy your house outright.
How Is Anna Buys Houses Different from an iBuyer?
At Anna Buys Houses, we work personally with local Omaha home sellers, talking by phone, meeting face to face, to help our clients reach their selling goals. We buy houses directly, quickly, and for a fair price. Anna and her team handle all of the details personally and can close on the property at your convenience, typically in only about 7 – 14 days. When you work with us, you won’t have to worry about expensive fees or hidden charges – in fact, we don’t charge any fees. The way we make a profit is by remodeling homes and then offering them to other investors or homeowners. Our process is fast, simple, and can help with any property in the Omaha area.