The real estate industry has experienced several trends in recent years. One of those trends is ‘iBuying.’ iBuying capitalizes on our need for convenience and instant gratification. This allows you to sell your house from your mobile device, like a tablet or smartphone.
This guide explains how iBuying is the future of home selling. But first, what exactly is it?
Who Is An iBuyer?
The term iBuyer refers to an instant buyer. iBuyer companies buy houses directly from house sellers. As a seller, you don’t have to go through the monotonous processes associated with traditional home selling.
When selling your house to an iBuyer, you inform them about your house’s details, such as its zip code, age, and condition. The company then uses mathematical algorithms to come up with a future value for the house. Once they have a value, the iBuyer company presents you with a cash offer for your house. If you accept the cash offer, they transfer the money into your account.
When the iBuyer company has bought the home, they run repairs and renovations to make the property better. They then list the house in the real estate market and sell it for a profit.
How Does An iBuyer Work?
iBuyers simply streamline the house buying and selling process. It eliminates all the work and nervousness associated with selling your house. With traditional home selling, you have to contact and pay a real estate agent, stage your home and show it to buyers who’ve shown interest. This is not the case when using the iBuyer model.
You simply fill in a form on the iBuyer platform of your choice to inform prospective iBuyers about your home. The iBuyer then contacts you to ask about the house details such as:
- How old is the roof?
- How old is the heating, ventilation, and air conditioning (HVAC) system?
- How many renovations have you done on the house?
- Does the house have a pool?
After that, you get an all-cash offer from the iBuyer. This process is usually fast and mostly happens within 24 hours. Because most of the process happens online, the iBuyer has to send a house inspector to look at the house in person. Once the inspection is done, you’ll receive a final offer for your house. The paperwork is also done online after you’ve agreed on the offer.
Different iBuyers have varying processes and fees. However, you generally receive a bit less than the real value. This is because the iBuyer has to renovate, market, and resell the house. It’s most suitable if you’re looking for a fast and convenient way to sell your house.
What Are the Advantages of iBuyers?
Although you receive slightly less profit by selling your house to an iBuyer, there are several advantages of using the model. They include:
- Fast Sale: The entire process happens in almost no time compared to the traditional house selling process. You don’t have to go through preparing the house, marketing, and showing it off to various potential buyers. Besides that, you don’t have to work on the buyer’s schedule. You can also choose the most convenient date to close the sale.
- No Staging: When getting ready to sell your house, most of the time, you have to interrupt your family’s daily life. This is because you have to run some repairs or renovations, such as painting, or buying new carpets. This can cause many inconveniences, especially if you have children, or if you’re living with a person who has a disability.
- No Showings: Unlike with traditional house sales, you don’t have to ensure your house is in pristine condition all the time in case a prospective buyer wants to see the house. Showing can be difficult—especially random ones.
- No Financing Uncertainty: You don’t want to agree with a buyer about the sale of the house, only to learn that they don’t qualify for a mortgage or financing. This is the worst way to cancel a deal. It’s even more painful if you’d already moved out of the house and declined other offers. With iBuyers, there’s no possibility of encountering a financing contingency, since they pay you cash.
iBuying has been increasing in popularity, especially among investors. Remember that in today’s world, convenience comes first, regardless of whether you’re buying or selling. As technology continues to evolve, and with so many successful transactions, we can say that iBuying is the future of home selling.
iBuying has demonstrated that it is the future of home selling and buying. This is because it capitalizes on convenience. It also presents many advantages to home sellers that the traditional method lacks sorely. These include quick sales, no staging, and no showings, and no financial contingencies.