Most home sellers dream of having a hassle-free sale whereby they find a suitable buyer, collect the cash, and hand over the keys. However, the process can be a bit complicated, especially if it’s your first time.
It is a time consuming and an emotional task, especially when you have had numerous memories there and have spent too much effort and money to make it a special place.
However, if selling is the right move for your family, it’s worth it, but you would want to ensure that you use a proper method.
Technology has dramatically changed the real estate industry, and one of the most significant trends is the introduction of iBuyers. Still, some homeowners prefer to seek help from selling real estate agents to represent them in the selling process.
The two options work best for different individuals in various situations. Here is an informative guide covering both iBuyer and realtor selling options to help you make a knowledgeable decision.
General Overview
An iBuyer is a company that uses the internet to make instant offers on your house. They decide your home worth, make an offer, and give you the appropriate cash. There are four major companies in the market.
Opendoor is the original iBuyer that operates across a large market. With Offerpad, you have the chance to decide when you want to close the sale. Further, if you move within a fifty-mile radius in your locality, the company will help you cover your moving expenses.
Zillow also provides instant offers based on the comparable sales and value estimate. Redfin determines your property’s market value and performs home inspection for a few hours.
Knock appears different from the rest and is an ideal option, especially if you are buying and selling a house at the same time. The company helps to purchase your new home, and you can move in even before closing a deal with the other one.
They then represent you in your current home sale, and once the home sells, they make the appropriate transfers.
On the other hand, if you seek help from a selling real estate agent, he has the responsibility to represent you to get the best price for your house.
They sell your home on the open market at the current retail price and schedules meeting with several buyers once at a time at your convenience. Realtors walk with you throughout the entire process from the beginning to the end and negotiate in your best interest.
Home Valuation
The iBuyer companies use the automated valuation model to determine what to offer for your property. It’s an algorithm that determines your home’s market value without even conducting the physical inspection. They may use the lowest comparable in your region then subtract 5%-10% off the cost to determine the cash offer.
There are too many valuables that may affect the premises’ cost. Therefore, it may be impossible to get the actual value of a property without stepping in it.
Experienced Realtors, including The Kay-Grant Group in Scottsdale, Arizona, use accurate comps, including your location, present upgrades, amenities, conditions, and home warranty to determine the value.
The Selling Process
Selling your home through an iBuyer includes some streamlined processes. First, you choose the right company and proceed to their website to fill in the home address and other relevant details about your property. Within around 24 hours, you receive offers for your house.
Note that you may incur an additional itemized fee, including commissions, and holding fees, among others, based on the company.
You have the opportunity to decide whether you wish to proceed with the deal or not. If you take the offer, you will receive visits from an inspector to evaluate your property’s conditions. In case of repairs, you fix it or deduct the cost from the offer made by the iBuyer.
Based on your preferences, the sale can close within a few days. It is, therefore, an incredible option for homeowners who wish to sell their property fast. Besides, it saves you the hassle of having to negotiate with multiple buyers.
The real estate agents seem to have more knowledge and years of experience in the local property market. They will thus help you with the best possible listing price for your house within a reasonable period.
You start by getting the right realtor to put your home into the public through their website and social media. He will also help you get the right price to attract most buyers through comparative market analysis.
Additionally, realtors will help prepare your property, making improvements and modifications to increase salability. They will then get the right offers and guide the negotiation process so that you achieve a favorable price for both buyers and sellers.
You may also need to have your home appraised and inspected so that the buyer is sure of the right home conditions. If your home has unique features that may attract a higher price, it would be best to settle for realtors since they use human judgment to price your property.
Types Of Fees Involved
The convenience of selling your home through an iBuyer comes at a cost, and you may have to pay the company 6-8% of your premises’ final sale price. The company takes the home out of your hand and prepares it for sale, and they aim at making profits out of their services. If you wish to get more money out of your house sale, you may want to go for realtors with a better commission fee of 5% to 6%.
Summary
The main benefit of using iBuyer is convenience. First, the selling process may take place even in a handful of days. Besides, you will not have to spend a lot of time preparing your home or uptake expensive professional staging.
Similarly, it eliminates the need for numerous showings, open houses and the traditional inspection process. Additionally, iBuyer offers you high control and flexibility.
However, you will incur higher real estate commissions. Besides, the automated valuation doesn’t give an accurate value of your property, and they offer you receive will always be below the right amount.
On the other hand, when using a real estate agent, you will have a better chance to receive multiple offers. Besides, having an expert in your local area will help know the market trends to set the appropriate price and reach your property’s best advertising avenues.
Further, the agent will help negotiate on your behalf, which may maximize your profits in the long run. However, the process may take longer since your house may not get the required attention but that depends on how busy your agent seems.
