Selling your house is a very challenging business: even before listing your property, you will have to repair and renovate your home to get top offers. Once you list, you will have to constantly be ready to show your home to potential buyers by making everything tidy and presentable. Sounds exhausting? Well, if you do not want to be bothered by all this, there are other options available for you. One of them is to sell your property to iBuyer companies. You can check out iBuyer reviews to find the most suitable one.
What is an iBuyer Company?
iBuyer companies or instant buyers are real estate business firms that began in the mid-2010s and quickly became popular with sellers. iBuyers can be considered as a type of high-tech house flippers. They offer almost-instant cash offers for houses on sale. However, unlike typical house flippers, they usually only consider houses that are in reasonably good shape. iBuyers also normally operate in metro cities since this is where there are more takers for their business. But there are several real estate companies with a national presence that give iBuyer offers for customers.
What are the advantages of selling to an iBuyer Company?
Almost every iBuyer reviews will talk about the convenience of selling to such companies. This is the greatest advantage in working with them: you don’t need to put in the hours or money to repairs, and you do not need to be bothered with presenting your home. And since you are not selling to an individual buyer, there is much less chance of a deal falling through, and you can be assured of a cash offer upfront. This also means that you can close on the sale in as little as 10 days which is a major plus in real estate.
Are there any disadvantages in selling to an iBuyer?
While it’s true that many sellers in metros prefer the convenience offered by iBuyers, reviews also suggest that such companies do not find favor with sellers looking for a huge profit from the sale of their property on various for sale by owner websites. This is because iBuyer companies rarely offer the market rate for any property. That being said, in response to the huge boom in housing real estate, iBuyer companies have upped the cash offers which are now much closer to the market value. iBuyer companies will also have service fees that are typically 5% of the sales price. You should note that closing fees and listing fees (if you have a listing agent) are not included in this service fee.
Is selling to iBuyers the same as selling to House Flippers?
While iBuyer companies may sound the same as house flippers, there are some major differences between the two:
- House flippers generally try to offer the lowest price possible. But iBuyers put forward cash offers that are much closer to the market value of a property than house flippers.
- iBuyers do not remodel or renovate homes; therefore, they will offer only for those properties that are in good condition. However, house flippers buy houses in poor condition so that once they repair and renovate them, they can resale them for a bigger profit.
When to sell to an iBuyer?
Selling a house as is in the open market, in the traditional way, is the best method to get maximum profit out of the sale of your house. That being said, if you require cash quickly, this option might not work for you. In traditional real estate, you will need to spruce up your home and make it presentable before a sale. This means repairs and renovation. Sometimes, you may not be able to afford it, or the project might be too big for any individual homeowner to undertake. In any of these cases, it will be a good idea to consider iBuyer companies. They are fast, convenient, and offer cash up front. While their prices may not match the market value of the property, you are freed of the hassle of repairs, listing, and showing your home to potential buyers. However, most iBuyer companies have eligibility criteria – if your house does not fit this, they will not make an offer. So, make sure that your house is considered ‘eligible’ by the company you choose.
America’s Top iBuyer Companies
According to Houzeo reviews, Opendoor is America’s largest iBuyer whereas We Buy Ugly Houses has the most coverage. Here is a list of the country’s top iBuyer companies that you might want to browse through while selling a house.
Opendoor is available in more than 40 cities across the US. They offer much more competitive prices than other iBuyer companies. As per Houzeo reviews, you will be able to close the sale within 14 days when working with Opendoor. However, they make their own assessment about the repairs needed, and this amount will be deducted from the final price. So, while their offer is obligation-free, it will be better if your property required only minimum repairs to get the maximum profit.
The main highlights when working with Offerpad are their fast cash offers and short closing time. However, their prices are lower than those offered by Opendoor, and they also charge a 1% cancellation fee. Their closing time is 10 days but you can also request an extended stay option if required.
Houzeo reviews classify Redfin as an as-is iBuyer. While they have very high service fees (almost 13%), they also provide a predictable and fast sale in selective markets. They have much broader eligibility criteria than most other iBuyer companies and will also buy vacant houses. Their closing window is also very flexible: you can take anywhere between 10 days to 90 days. However, extended stay is not an option.
We Buy Ugly Houses
We Buy Ugly Houses has been in the business for over two decades, making them quite the household name in instant buyers. However, it is a franchise and this means that the kind of service you get will depend on your location. They offer a quick close (as little as 3 weeks) and their eligibility criteria are also broader than their competitors. However, they do not offer high prices for houses although you will get the offer within 24 to 48 hours.