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Understanding iBuyers: What You Need to Know

Have you heard about websites that promise to list, market, and sell your home without any hassles? Maybe you’re familiar with “instant offer” programs that tout “unbelievable cash deals” so you can move quickly. All of these alternatives to traditional real estate are known as iBuyers…and they’re shaking up the industry more than you think.

Want the inside scoop on iBuyers? Here are some fast facts you should know before you work with them.

4 Fast Facts About iBuyers

What are iBuyers?

Keyboard with iBuyers

In a nutshell, “iBuyers” is a catch-all term for companies that directly purchase homes from a seller. These companies then will stage, list, market, and sell the properties themselves…and turn a pretty big profit.

One of the biggest benefits of working with an iBuyer is receiving an instant cash offer for your home. If you’re looking to move within a few weeks, this could be a great option for you—but you might not get the best value for your home.

Are they a scam?

Bank loan and cash from iBuyers

Receiving a cash offer for your home within a few days might seem too good to be true. And, for the most part, it is. Although iBuyers offer plenty of convenience, they don’t always use a real person to determine the value of your home. Instead, they turn to algorithms and potentially outdated information to generate a price—which means you’re trading value for convenience.

Believe it or not, sellers who work with iBuyers can miss out on tens of thousands of dollars worth of equity. And sometimes, working with a traditional agent can be just as quick and convenient.

Are they better than a traditional agent?

Women discussing iBuyers

This isn’t an easy question to answer—and it all depends on your individual situation. If you crunch the numbers, you’ll rarely get more money for your home by working with an iBuyer. However, every seller is different, and if you need to move in a flash, the drop in price could be worth the convenience.

If you’re looking for the best of both worlds, there are some agents that work directly with iBuyers. While you might gain some of the advantages of using an agent, such as personalized service and proven marketing strategies, you’ll still take a huge hit when it comes to price.

Should I work with them?

People browsing homes

That’s up to you—but you should keep in mind that iBuyers lack the personal touch of a real estate agent. When you work with an iBuyer, almost every aspect of the transaction occurs on a screen. They also don’t have the custom-tailored service, hyper-local expertise, and coaching skills of an agent.

Many sellers turn to iBuyers to move quickly or because they don’t want to pay an agent’s commission. While these are valid reasons, it’s important to consider all of the additional services you get from an agent. When you work with a real estate pro, you’ll gain access to their staging, negotiating, marketing, and legal skills. Those are things you just can’t get from an iBuyer!

Getting Ready to Sell?

If you’re thinking about working with an iBuyer, I’d love to answer any questions you might have. Just reach out to me, Raj Banerjee, for more information about the Gold Coast’s bustling real estate market. I’m always here to lend a helping hand!

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