Selling a home? Get a free home value report
Buying a home? Search all homes for sale
You’ve probably heard on TV, radio, or the internet ads from companies that are launching an iBuyer program. But what are iBuyers?
An iBuyer, or instant buyer, is a company that buys properties from sellers quickly and conveniently. When you sell to an iBuyer, you don’t have to list the house for sale on the market; in fact, you don’t need to do much with the home at all as far as preparation goes. Like their name suggests, iBuyers will craft an instant offer for your property.
As of today, none of the prominent players (Zillow, Offerpad, Opendoor, etc.) are offering an iBuyer program in Virginia, Maryland, or D.C.; usually, they launch their programs in states with lower sales prices.
How do iBuyers work, exactly?
By design, they’re pretty easy to sell to. You simply call them up, and they’ll write you a check.
The downside, however, is that they’ll charge you a convenience fee of about 10% to 20%, which can be a substantial amount.
“
”
Why would someone sell to an iBuyer, especially in a good market where homes are selling in less than a week? Usually it’s because they need to sell quickly, for whatever reason, and they’re not interested in getting the maximal amount from the home sale.
Like their name suggests, iBuyers will craft an instant offer for your property.
”
It’ll be interesting to see how this program will unfold and whether it will stick. Discount brokerages like Purplebrick have already exited the market; they’re based in the United Kingdom but now have closed their doors in the United States. Only time will tell.
If you have any questions about iBuyer programs or real estate in general, feel free to reach out to me anytime.
