If you’ve been thinking about selling your home, say in Doncaster, then you would have first had to clean your property, stage the interiors, get a professional to take good quality pictures, list your property online, hire estate agents in Doncaster and have multiple potential buyers walk in and out of your home during showings. Phew, the process of selling a house can be pretty exhausting! So, what if there was an easier way to sell your home; a way that is quicker and much easier. That is essentially what iBuyer brings to sellers and buyers! If you’ve been wondering what iBuyer is all about, here is everything that you need to know about the concept of iBuyer in the real estate world.
What is iBuyer?
iBuyer is a real estate technology company that purchases homes from sellers and homeowners directly and digitally. That’s right; the whole concept of buying a home is done digitally, using advanced technology and local market data. In simple words, iBuyer is a digital concept of buying and selling property that has completely revolutionised the real estate market, in the world! And if you’ve been wondering, the ‘I’ in iBuyer stands for instant, because the offers that are made on homes are instant!
How does iBuyer work?
iBuyer makes the process of buying and selling a house very easy. First, you need to fill up a simple form on the platform. Then, the iBuyer company will contact you to ask you a few questions regarding your property. Usually, the company will contact you via email or maybe even give you a call. You will be asked questions about the conditions of the house as well as the amenities and features of the property. How old is the house? What is the condition of the roof? Has the property undergone any renovations recently? Is there a swimming pool? What is the kitchen like? How old is the air condition system? What is the condition of the plumbing system?
Based on your answers, and the data that the iBuyer platform gathers from the local market, using an AI algorithm, you will get an instant all-cash offer. Usually, this offer is sent within 24 hours to 48 hours, hence the ‘I’ for ‘instant’. After that, an iBuyer inspector will come by the property to check the property in person – so be sure to be absolutely truthful when you fill out the form.
Once the iBuyer inspector has approved, you will get a final offer on your house. The offer price varies from platform to platform, but usually, iBuyer companies offer a price that is very close to the market price. There is also a service charge as well as a fixed closing fee which is mentioned in the final offer. All the closing paperwork is signed digitally and the sale of your home is complete. It’s just that simple!
So, what’s the catch?
Honestly, there is no catch. iBuyers are here to stay; iBuyers are the future of the real estate industry. There is no catch. The only thing to keep in mind, per se, is that an iBuyer platform will charge a service fee. Essentially, think of this as the fee you would pay to the estate agent or any other professional that you might hire to provide some service.
iBuyers work on a simple model of low margins and high volumes. They prefer to make good offers that are very close to the market value of the property, and they are able to do so because of the high transactional value. Unlike a real estate investor who might invest in five to ten properties in a year, iBuyers invest in higher volumes.
What makes iBuyer better than conventional buying or selling?
For one, iBuyer is totally digital, so you do not have to go through the hassle of staging your home, listing it on the market, finding estate agents or prepping your home for open houses and showings. Also, an iBuyer company will make an offer that is much closer to the current market value, so you do not have to deal with never-ending negotiations and low offers.
As per the data, iBuyers tend to offer a very fair price which is usually 1 to 3 per cent below the market value. While this might not be suitable for certain homeowners and sellers, it is fairly acceptable for sellers who are looking to make a quick sale or a hassle-free sale.
When should I use iBuyer?
Say, you are moving from one city to another because of a change in job or job location. You probably have two weeks to make the move, and you certainly have no time to waste. In that case, getting a good offer without the hassle of hiring estate agents and staging your property seems like a pretty good deal, especially since the offer value is rather close to the market rate!
Another situation where iBuyer is ideal is when you might have inherited a property or maybe when you are thinking about getting rid of an old rental property. Instead of going through the hassle of sprucing up the place, redoing the interior, repainting the walls, changing the upholstery and spending money on repairs, you could just sell the property quickly and easily through iBuyer. Not only will you not have to worry about the selling process, but you will get an offer within days, an all-cash offer that too!
Image if you’re having twins in a few months. You’re going to need more rooms and a whole lot more space. Now, instead of going through the conventional process of putting your home on sale while you look at potential new properties, all while deciding on a budget and applying for a pre mortgage approval, would it not be easier to get an all-cash offer on iBuyer? That too without setting up your home for showing, attending open houses to find your new home all while struggling to get a good mortgage rate. iBuyer makes the process quick and easy, and you can always use the all-cash payment to make the downpayment for your new home!