Should You Work with an iBuyer? Pros and Cons of Fast Online Home Sales
You’ve probably been hearing more and more about ibuyers as convenience and remote dealings become even more important. An ibuyer is a company that will make an offer on your house without coming to look at it in person. The popularity of ibuying has grown dramatically as in-person showings become increasingly inconvenient—if not impossible.
Life has not come to a halt in this difficult market situation, though. You might not be able to control when you have to move. An ibuyer can usually make an offer very quickly, buy the house as-is for cash, and close the deal in as little as a week.
This may sound like the familiar cash-sale real estate investor, but ibuying differs in its low level of personal contact. Thanks to modern digital technology, the entire transaction can take place online. An ibuyer can appraise your house through photographs you supply, and you can discuss your situation and give a tour with readily available technology solutions. You can sell your house to an ibuyer fast without anyone coming there before you reach a deal.
If you’re thinking about working with an ibuyer, consider the pros and cons.
You can’t go wrong working with an ibuyer who’s got your back.
iBuyer Pros and Cons: Who Needs an iBuyer?
iBuying is a good option for people looking to sell their houses under challenging circumstances. These are some of the advantages of ibuying offers:
Pro—Sell Your House Fast
Selling your house on the traditional real estate market can take weeks or months under the best of circumstances. Currently, people may be delaying moves. The market is slow. But reliable ibuyers are not slowing down because they are able to maintain their services even in the midst of challenges. You can receive full payment for your house in cash within days when you sell to an ibuyer. If you have an exact schedule your move has to follow, a thoughtful ibuyer can work with you to keep you in your home until it’s time for you to go.
Pro—Sell Your House Online
While an ibuyer doesn’t have to enter your home to make an offer on it, they do need to know what they are getting. You can post pictures of your house in Google Docs, and only the ibuyer will be able to see them. You can use programs like Zoom or Google Hangouts to lead a virtual tour. If you are unfamiliar with those programs, don’t worry. They are easy to install and use.
Pro—Sell Your House As-Is
You should provide as many views of your house as possible to the ibuyer—front and back. Be sure to show them all the problems with the house. iBuyers buy houses as-is, but they have to know the property’s real condition to make an accurate offer. The location of the house doesn’t matter. A local ibuyer can work with you to find a solution regardless of where your house is.
Pro—Sell with No Showings
iBuying has been around for years because there have always been people who have been hesitant to let people into their houses. When you sell to an ibuyer, you don’t need to have a real estate agent in your house, especially during this time that might be challenging for you and yoru family. Since you won’t be showing the house to potential buyers, you won’t have to stage the house either.
Understanding the Big Picture with iBuyers
You should go into a conversation with an ibuyer with full awareness of what you’re getting into. Here is a somewhat different perspective on the same service:
Possible Con—Time Is Money
If you have the time to wait for your house to sell on the traditional market and the resources to repair and show it, you may get more money in the long run. However, it is uncertain how long that might take or where prices on the local real estate market will be in the future. Also, don’t be fooled by list prices. After a traditional real estate deal closes, there are numerous fees and commissions to pay, so the amount you receive will not be the “sticker price.”
Possible Con—Someone Still Has to Take a Look
An ibuyer will make an offer based on pictures and a virtual tour, but it will be contingent on confirmation of the condition of your property. The ibuyer will send an estimator out who will want to see your house before the deal is finalized.
Possible Con—It Pays to Cooperate
You can’t scuttle the deal by not letting an ibuyer’s representative see your property or to see all of it. The reasonable assumption by the estimator, in that case, would be that you are hiding the worst-case scenario. So, even though you don’t have to let anyone on your property, it is in your best interests to do so for a final evaluation.
Possible Con—Repairs Will Still Cost You
There’s no way around it: the condition of your house will be considered when making an offer on it. The ibuyer will have to make the repairs, after all. The price the ibuyer offers you is calculated on the basis of the information you provide and the estimator confirms. You should then expect a breakdown of deductions, fees, and costs that affect your offer in a document called a house sale net sheet. The upside is that you do not have to pay for the repairs in advance.
The Deal You Need Right on Time
There are a number of reasons why you may choose to sell your house to an iBuyer. The traditional home sales route may not work for you if you have to move on a strict deadline. You may have fallen behind on your mortgage payments in these uncertain times or you cannot afford to make the necessary repairs on the house before you sell. iBuying may be the option you need to make your move a success. It may be the certainty you need in times of uncertainty.