Need to sell your home? You may have heard of companies such as OpenDoor, or seen an ad that promises a speedy (or close to immediate) offer for your house – all while sidestepping REALTORS completely. These services are known as “iBuyers.” The term is derived from their role and status as digital companies that buy homes “instantly.”
Overwhelmed sellers who need to sell fast find the concept of quick cash appealing. However, not all iBuyers are created equal. The big, national iBuyers like OpenDoor and OfferPad come with several conditions and costs attached to them. If you’re considering selling to a national iBuyer, read the fine print very carefully.
Most homeowners still choose to work with a REALTOR®. Here are a few of the most important reasons why 99.7% of people still choose a local real estate agent to sell their home.
Not All iBuyers Are Created Equal
The big iBuyer services can vary significantly in their approach. Certain iBuyers are focused on obtaining properties for flippers. Others may be purchasing properties with the intention of selling them directly to retail buyers.
To determine a home’s estimated price, big iBuyers use algorithms based on essential information such as its age, location, and type of home. They also use images, questionnaires, and physical inspections done by their agents. If you haven’t improved your property before the inspection, that may lower the offer. On the other hand, improvements might not result in an increase if the iBuyer primarily deals with flipping homes that require renovations. The flipper may be gutting the home anyway, making your improvements irrelevant.
We can help you determine your home’s current value, discuss whether or not renovations make sense for your home, and go over the home-selling options we offer which include easy cash offers.
No Say In The Sale Price
Experienced REALTORS® are devoted to finding the best price for you. They strive to bring about win win win scenarios for all involved. They will take time to craft an effective strategy to increase the value of your home through improvements, correct pricing, and attractive staging. They can discuss your options for getting the best price possible for your home and situation.
On the other hand, big iBuyers are simply reselling properties. As such, their offers tend to be lower than what an experienced real estate agent can get you from a traditional sale. If you go with a big, national iBuyer, there is usually little chance to negotiate for a higher sale price. Furthermore, in some cases, you may end up receiving less money after improvements due to costly repairs mandated by the big iBuyer. To make matters worse, they often hire their own contractors with elevated rates that come out of your final offer.
Additionally, be aware that not all of them are interested in every home. Some may only be on the lookout for undervalued properties or locations. Others may not accept homes older than a few decades or those exceeding a certain dollar amount. So, you might go through the process of trying to sell your home to a national iBuyer, only to find out that they’re not interested in your home. It’s important to research carefully before making a decision.
Before you make any changes to your property, reach out to us to discuss your home. We’ll discuss your needs and your goals. We’ll help you determine if it makes sense for you to get an easy cash offer or sell traditionally.
Moving Day Could Be Stressful
Selling to a big iBuyer company is supposed to be easy and less stressful, right? Not necessarily.
Some big iBuyers may need you to immediately hand the property over once you accept their offer. This can come as a shock to some sellers, even those expecting to move quickly. However, the speed and nature of working with a large corporation can cause headaches.
Many reviewers of OpenDoor, for instance, provide detailed accounts of the additional stress caused by OpenDoor and/or their contractors on or near moving day. One reviewer summarized their OpenDoor experience by writing, “It has been a nightmare dealing with this company. If I knew what I was getting into I would never have tried to work with them. It has been such a headache.” Another OpenDoor reviewer wrote, “the entire process was the hardest process I’ve ever gone through in my ENTIRE life and the most unprofessional one. The level of stress my family and I went through was ridiculous.”
We’re not a big, faceless corporation. We’re a small, local business. We’ll help you determine the best way to sell your home based on YOUR wants and needs. We specialize in helping homeowners sell with less stress, whether that’s with a traditional sale or our Easy Offer.
Commission + Fees = Less Money In Your Pocket
But the big iBuyers don’t charge a commission, right? Wrong.
Even if you decide not to use your REALTOR® to list your home, you should still be aware that commission fees from the big iBuyers may apply. This is because big iBuyer services rely on their own agents throughout their transactions. The exact cost of the commission varies from site to site, but sellers are usually responsible for covering the agents’ time and services. While companies tend to keep the specifics of these costs private, it is important to factor commission payments into your budget when considering using a big iBuyer service.
Add to this the fact that you’re starting with a below-market value, fees, and overpaying their contractors, and you’re left with less money than if you had utilized a local REALTOR®.
Cost Of “Convenience”
Based on the many poor reviews of the big iBuyers, they may not even be more convenient for sellers or even the final buyers.
When it comes to big iBuyer offers, it can be hard to determine exactly what the cost will be since a variety of property-specific information and confidential data come into play. As a general rule, however, these services usually equate to 13-15% of the total sale price of your property. Additionally, you may end up paying more if you need a creative solution. For example, some companies provide a loan upfront to cover your down payment so you can purchase a new property before selling your existing residence. Once the old home is properly prepped and sold, you then pay back the loan plus all associated repair costs. It’s not uncommon for the fixes they make to be wildly exaggerated or vast in price, with reports of contractors charging $200 per lightbulb.
Selling to a big iBuyer can be tempting. They spend a lot on ads that make them seem super easy. They offer homeowners the allure of quick cash and a quick sale. However, this may not always be the most profitable option when compared to working with an experienced agent.
In some cases, the market is so active that homes are being sold within days and buyers are able to obtain multiple offers with prices that often exceed the asking price. This means that the amount of time saved from selling to a big iBuyer could be just a few days. In Columbus, Ohio, inventory is low and the area is in high demand. Even as the market changes, homes are selling in about a month on average.
Need To Sell Fast? You Have More Options Than You May Know
If your home is in Central Ohio, you have options without turning to an unscrupulous big iBuyer company. You don’t have to just be another line-item deal to a faceless corporation. You can work with a reputable, experienced, local REALTOR® who can help you determine the best way to sell your home.
At the Rita Boswell Group, we offer multiple ways to sell a home in Columbus. Need to sell NOW and don’t want the hassle of repairs? We have Easy Offers, our program that allows you to get a cash offer on your home within 24 hours. Plus, there are no “hidden fees” like with the big national iBuyers.
Want to sell quickly but also keep as much of your equity as possible? We can help you sell traditionally on the open market with our proven home-selling strategy.
Either way, you’re working with an experienced, local REALTOR® who has your best interests in mind. Our proven home selling strategies can help you sell fast and profitably with less stress. That’s our goal. We’re a local small business, so we care about the local community.
To learn more about your home selling options, call or text 614-830-9767. We’ll discuss your needs and your options.
Curious About How Much Your Home Could Sell For?
If you’re thinking about selling your home, the first step is to determine your home’s current value. We make it super easy to check your home’s value and get an easy cash offer. Simply put in the address of the home you want to sell, follow the prompts, and get your home’s value.