In the U.S., it takes, on average, between 55 and 70 days to sell a house from the point an offer is accepted and the sale is finalized at closing. Do you want to wait 70 (or more) days to sell your home? If you’re looking to make a quick sale on your house, you could turn to an iBuyer like so many sellers are doing.
Selling to an iBuyer takes all the hassle out of selling real estate; there is no need to market, stage, host open houses, and wait for a contract, which might slip through the cracks and require a restart to the process. Speed and convenience are two reasons that iBuying is expected to skyrocket in 2024. If you want to sell your home quickly, iBuying might be the ideal selling solution for you.
Real Estate Trend with Staying Power: iBuying
Although iBuying is a real estate trend that’s been steadily growing in popularity, many home sellers still are not familiar with the concept. Even though there are different iBuying models, and generally speaking, an iBuyer is a company that buys houses for sale that are in good condition. The company offers fair market value for the home and may conduct small-scale repairs simply to ensure that the home is safe for reselling.
Unlike home flippers that tend to focus on houses that need updating and repairs so they can make the repairs and sell for a profit, iBuyers profit, instead, usually charge a service fee that’s on par with what a seller would expect to pay their real estate agent. An iBuyer might also choose to list their houses for sale for more than they paid for them, but that’s not usually how they earn enough to support their services and remain profitable.
Most iBuyers offer fair prices homes and charge competitive fees. This service is ideal for homeowners who have a good idea on what their home is worth and are ready to a company like Offerpad.com without any hassles. Sellers can avoid months of home showings, make a fast sale, and use their earnings to move on with their lives.
How Do iBuyers Calculate Their Offers?
Many iBuying companies rely on their own proprietary software to help them value a home. Typically, the market value of a house is based on what similar homes in a location sold for recently. In order to make sellers fair offers, iBuyers rely on their technology to enable them to see what other similar homes in an area sold for but also while incorporating factors about each specific home into their data. Their use of automated valuation models is a cornerstone of how they conduct their business. Many of these companies depend on local pricing experts to help them arrive at a fair offer.
How Long Does It Take to Sell a Home to an iBuyer?
As mentioned, when you sell your home to an iBuyer, the process is fast. Typically, you can expect to receive your offer in less than 24 hours. Sales can be completed in a matter of days–and sellers have the flexibility of choosing their closing date. The process eliminates common worries associated with selling a house. For instance, if you have a home in mind and your offer is accepted, you don’t have to worry about buying on contingency; you can have your funds in about a week’s time if you accept the iBuyer’s offer.
Expanding Your Options
If you plan to sell your home, it’s good to have options. When you consider making a sale to an iBuyer companies, you’re certainly not obligated to accept the company’s offer. You can decline the offer and go the traditional selling route–listing your home on the market and showing it to prospective buyers. Buyers who don’t mind waiting for the best-possible offer may choose to go the traditional route.
However, if you are happy with the offer, you can accept it and avoid the necessity of house showings, negotiations, setbacks, delays, etc…and close on your real estate deal quickly. Selling to iBuyers appeals to many sellers who know what their house is worth and don’t mind sacrificing a percent (or more depending on the offer in question) to complete their property transaction quickly and all the hassles associated with the real estate marketplace.
Real Estate iBuying Is Taking Off
Reports demonstrate that iBuying “is ramping up.” Even in this seller’s market, many property sellers are choosing the iBuyer model to sell their homes for a fair price, without hassles, and with lightning fast speed. According to this same report, “a survey of 6,300 homes where a seller declined a Zillow offer ended up selling for an average of about 0.09% more than Zillow’s offer.” While iBuying has been extremely popular with tech-savvy millennials, it’s now attracting sellers in other age demographics because of the advantages it offers.
This past year, iBuying transactions have reached a record high. This has real estate experts forecasting the iBuying deals are likely to skyrocket in 2024. Cash offers, flexible closing dates, no need to invest in expensive renovations–the iBuying model offers seamless selling to buyers, many of whom see the offers as fair, competitive, and ultra-convenient. Although iBuyers often charge slightly more than real estate agents, that’s not always the case; and, that elevated fee, in any case, pays for the services and convenience of the iBuying model. The questions sellers have to ask themselves is whether that slight increase is worth it for them.
Is Selling to an iBuyer Right for You?
Take some time to research what similar houses are selling for in your zip code. Consider what you paid for your home and what you’d like to make on your real estate transaction. Then, upload your home’s information to a well-known iBuyer and see what the company offers. You might be thrilled. You might want to take time to think about it. You might want to conduct more research. The point is–iBuying is a viable option that is enabling many sellers to sell with no hassle. Whether you choose to accept or decline an iBuying offer, you are sure to feel empowered simply by having more options when you decide to sell your home.
The iBuying model is moving toward mainstream popularity. It won’t replace traditional real estate transactions with real estate agents, but it adds a new option to the table. Many agents actually work with iBuyers to transact property deals. Having more options when selling your home is a positive thing. It might be the best way for you to sell your house.