What Is an iBuyer—and Should You Consider One for Your Home Sale?

There’s no denying that the real estate world is changing. And in recent years, one of those changes has been the emergence of iBuyers.

Not sure what an iBuyer is, or whether you should consider one for your home sale? A recent article from realtor.com answered some frequently asked questions about iBuyers, including:

• What is an iBuyer? An iBuyer is a company that makes cash offers on homes. Instead of going the traditional selling route (for example, listing your home, hosting open houses, etc), with an iBuyer, you simply go to the company’s website, enter your address, and fill out a questionnaire. Shortly after that (typically within 24 hours or less), the iBuyer will send back a cash offer for your home. If you decide to accept the offer, the process moves quickly—and generally, you’ll close the transaction in just a few days.
• What are the pros of selling to an iBuyer? If you’re looking to sell your home fast, iBuyers are an option. If you decide to accept the iBuyers offer, the process tends to move quickly—with many deals closing in a few days’ time.
• What are some of the disadvantages of selling to an iBuyer? Generally, offers from iBuyers are lower than what you’d get by selling your home the traditional way—often significantly lower. Plus, iBuyers have a variety of fees associated with their service—and those fees can add up in a big way. (According to data outlined in the article, on average, home sellers will pay between 13% and 15% more in fees to an iBuyer than a traditional real estate agent.

Bottom line? Selling to an iBuyer can help you sell your home quickly—but it’ll likely be with higher fees and for a lower selling price than going the traditional route. So, if you’re thinking about using an iBuyer for your home sale, definitely consider the potential losses before you decide to move forward.