The the recent entry of Zillow offers the Gilbert area has become flooded with iBuyers. iBuyers are companies that are attempting to streamline the process of selling a home. You may have heard radio commercials for Opendoor or Offerpad on your commute to work. Or maybe you have seen Zillow advertising to purchase your home as you browse their site. We at the Reeves team have been getting more and more questions about these services. We will shed some light on the differences between iBuyers and the traditional home selling process. We will also answer some of the most common questions are clients have been asking us.
The most common question we get is “Will they offer me the same amount I would make if I sold my house myself?”. The short answer to this question is No. You will not make as much by selling your home to an iBuyer service as you will through a traditional sale. The reason for this is simple. Ibuyers such as Opendoor will need to resell your home at a higher price to make a profit. If the companies broke even on the sale of the homes they would be losing money as they have to employ a employees to facilitate the transactions.
So what is the benefit of using an iBuyer? Offerpad and other similar companies are trying to make the process of selling your home as simple as possible and hope that buyers are willing to pay a premium for this simplified process. One thing to note is if you are working with an experienced real estate professional that puts their clients needs first, such as The Reeves Team, the home selling process can be tailored to your needs without paying the premium that iBuyers will charge.
Another question we get is, do these iBuyers charge a fee? The answer to that question is yes. While the fees can vary from company to company, most iBuyers hover around the 7% mark which is higher than you would pay working with an experience real estate team. While many people look at these companies as home flippers the companies themselves are trying to distance themselves from that narrative and suggesting they make their money from the fees associated with the sale and not from price appreciation.
So should you use an Ibuyer such as Zillow Offers or Offerpad? While these companies do offer flexibility in the home selling process, we recommend using a licensed real estate professional that your trust. If you are open and honest when communicating what you need from the home selling process you can recreate the ease of selling to an iBuyer without paying the extra fees they will charge for the convenience. This is also a great time to remind you about The Reeves Team 90 day sale guarantee!
So what do you think of the new iBuyer startups? Let us know in the comment section below.