(Photo by Nicole De Khors from Burst)

A lot of things have shifted from offline to online, especially over the last 18 months, but one easy scheme that may be too good to be true is the rise in online home buyers that promise to sell your house basically sight unseen. This is known as sales hype from iBuyers and you want to be careful.

It may sound like a dream scenario. If you decide you want to sell your home, you won’t need to fix it up, stage it, or slog through any showings at all. You just log onto a website or make a phone call and with little but the basic information on your property, you can get an instant cash offer and move on.

But let’s be honest, it’s a seller’s market, and inventory is so low everyone is clambering to buy properties. So don’t fall for the easy sales hype from ibuyers and investment property agents. Even if your home needs work or you think it’s a hassle to go through the traditional sales process, it will almost certainly be better for you to sell with an agent in the end — especially in today’s market!

Sales Hype from iBuyers is New and Dangerous

Sites like OfferPad and OpenDoor may be worth it for people who are looking for a more convenient sale rather than higher profits. iBuyers like these, meaning they buy online, streamline the home sales process through technology, but transactionalize the effort. And while it might sound delightful to receive an all-cash offer in 24 hours or less, there are definitely reasons why its better to work with an agent and sell your home in a more traditional way.

It’s Not Always So Convenient

iBuyers may help you to get rid of your home quickly, but that convenience comes with both a service cost and an opportunity cost – with the seller often paying considerable fees and missing out on what other buyers would undoubtedly pay in today’s seller’s market.

The idea is that you can be out of your home with no effort or hassle, but in actuality, it is up to the seller to input all of the particulars of their homes that would cause the iBuyer to offer the best price. Often it is a real estate agent that recognizes the value of flooring, appliances, specific layouts, and the like, but with an iBuyer, a seller will need to be their own best advocate. 

It’s Not Always Transparent 

In a typical sale, the seller can negotiate repair costs so as not to pay them in full. With an iBuyer, if repairs are needed, the buyer takes the full cost out of their offer price, and repair costs are based on their own inspections and priced at their own discretion.

Additionally, sellers should be aware that you don’t always know the exact terms of an iBuyer’s offer until you’ve actually spent a bit of real effort working through the entire process. And a business like OfferPad or OpenDoor can change their offer at the last minute, so if you’re counting on that all-cash offer to alleviate the loan process toward the purchase of a new home, keep in mind that this amount may change — and dramatically — with little warning. 

It’s Not Always A Value

Those inexperienced with selling their homes, or who don’t have a firm grasp of the real estate market risk losing a large portion of their net proceeds because they may not be able to properly negotiate for market rate on their property. Rushing the process can also lead to significant money loss for the seller. 

And the conveniences these businesses offer also often come at a steeper cost than anticipated. OfferPad, OpenDoor, and similar businesses want to buy your home at a discount, mark it up, and resell it at a profit. And while doing that, they also charge a fee for their services, which is, at times, more than traditional real estate commissions.

Fees vary from 6% to 14%, and this can change based on how easily the iBuyer feels it may be to sell your home after they do their repairs and sprucing up. A more traditional agent’s fees are static and predictable from the start, and an agent will work hard for the sale regardless of how easy it might be for them to sell the property in the long run.

It’s Not Always a Seller’s Best Bet 

It may be tempting to choose the quick and easy way to get a cash offer on your property without making any repairs or subjecting yourself to the inconveniences associated with the traditional home selling process, but doing so limits your opportunity to connect with buyers who are willing to have a more emotional experience purchasing your home — and who may be willing to pay far more than an iBuyer would. 

Real estate agents like LIST WITH ELIZABETH® will market your home and work within their considerable expertise to find the right buyer for you. It may not happen in 24 hours, but in today’s seller’s market, it could… and it can still be a fast, efficient, convenient, and lucrative experience.