Working with iBuyers, good or bad?
Selling to an Instant Offer Company: What are the Pros and Cons?
- While using an iBuyer (instant buyer) saves you from paying real estate agent fees
- You may not have to pay the 5-7% real estate commission, but iBuyers charge fees that may run anywhere from 6 to 9%. The total costs of working with an iBuyer can sometimes run as much as 12-15% of your selling price.
- Working with an iBuyer benefits sellers who don’t have the time or desire to market their home traditionally.
- If you are in a situation where you need to sell your home quickly and are willing to take less than your home is worth, then an iBuyer may work out well for you.
- You will not get top dollar for your home
- Typically, the company will analyze your home online, using algorithms to come up with a value. For example, Zillow Offers will most likely offer you their Zestimate price. Sellers should expect an offer of about 10% under fair market value.
- Only accept a tiny percentage of the homes submitted
- If the company decides to make you an offer, they may send a home inspector out to determine what costs they will have in preparing to resell the house. If you work with an iBuyer, make sure to read all the terms, as you may be required to cover some repairs. Alabama is a buyer-beware state, so it will be up to you to make the best decision.