iBuyer cash investors promise a cash offer for your home and a quick closing. Let’s take a look at the fine print and why selling your home the traditional way could mean a higher profit and a just as fast closing!
Should You Sell Your Home to iBuyer Cash Investors or Not?
At first glance, selling your home to iBuyer cash investors, sounds like a great deal that is hassle-free and instantly puts money in your pocket…or does it? Let’s look at the fine print.
iBuyer Cash Offers
iBuyers are companies offering to buy your home for cash so that you close more quickly. What are the benefits for you as either the home seller or the home buyer? These are the questions I am going to answer.
First of all, it is important to understand that iBuyers like Zillow, Open Door, or Offer Pad are national companies filling a need to get sellers out of a jam. The number one goal for these sellers is closing on their home as soon as possible. It is not just national companies who do this. There are plenty of small local investors offering the same service.
This concept has been around forever. I’m sure you’ve seen the signs on the street, “we buy ugly homes,” or “cash for your home,” and so on and so forth. National companies are taking the “Cash Offer” concept mainstream.
What’s in it for the Seller?
What’s being promised is fast cash with little hassle. The getting cash faster might be true, but the little hassle part might not be the case unless you do not care how much the fees are or whether you get top dollar for your home. Since there are many companies out there offering cash offers, it is a great idea to invite many of them to see your home to get the best deal. This takes time and creates more work and makes the process a good bit longer.
Here are the Issues:
- What is the initial offer? They are all different.
- How much are their fees? It could be anywhere from a minimum of 6.5% to 9.5% or even higher. Ouch!
- Inspections credit, this is where they make their money. Your home will be nitpicked in order to get the price down and pay you as little as possible for your home, even if it is worth much more.
- Offers are limited to a range of $100 to $500,000
What’s in it for the Buyer?
iBuyer companies will put the home they bought back on the market as soon as they can. Sometimes they upgrade the home and sometimes they do not. Either way, the price of the home is going to increase to the point that the buyer ends up paying a higher price than if it was a traditional sale. This is driving price increases instead of the normal supply and demand process.
What’s the Bottom Line?
When home sellers use iBuyers, they are leaving a lot of profit on the table that could be going into their pockets. What most people do not realize is that your home could sell just as fast when placed on the market in the traditional way when priced correctly. It would encourage multiple offers helping to ensure you get the best price for your home and close quickly. Here at Keller Williams, we understand that every situation is different, which is why we not only offer traditional selling of your home but iBuyer cash offers as well. This is Gitta with Gitta Sells. When it comes time to sell your home come talk to me and my team. We will through the process of whichever option works best for you. Email at gittasells@gitta.com or give us a call at 407-330-2181. Until next week, happy home buying and selling!
