The Newest Biggest Thing in Real Estate is iBuyers.
What is an iBuyer?
Zillow, Opendoor and Offerpad are iBuyers.
They are Tech Giant Corporations that are claiming that they
are a better option than using a local Realtor.
They claim they are simplifying the Selling process.
And if you already haven't noticed,
they are all marketing heavily in Las Vegas to Buy your House.
So it is true? maybe... But at what cost?
When you Sell with an iBuyer, they give you an Offer Price.
Then as you read through the contract, you discover all the fees.
According to Collateral Analytics, a Research firm,
the average fees are from 13% to 15% (lets call it 14%)
Interestingly enough, they calls these fees "Convenience Fees".
They have to make enough money to pay the costs of two transactions,
carrying costs of their money, repair costs,
and they also end up paying the Realtor fees on the sale of the home
and PROFITS.
When you Sell with a local Realtor,
the average fees paid are 5% - 7% (lets call it 6%)
So to use an iBuyer, it is going to costs you an Additional 8%
In Henderson, the average Home Price is around $425,000
8% of that is $ 34,000
In Las Vegas, the average Home Price is around $350,000
8% of that is $ 28,000
How long do you have to work to make that much money
Is it worth it to you?
What is your money worth?
Other Issues to consider...
When you work with a Realtor, the Realtor is working for you.
Looking to maximize your bottom line,
protecting you throughout the transaction.
iBuyers are trying to get the best deal they can, and they are aggressive.
When you use an iBuyer, those profits go to Seattle, Arizona or San Francisco.
When use use a local Realtor, that money stays in our economy.
When you use an iBuyer, their goal is to sell it fast and cheap,
lowering the costs of Comps in your neighborhood which lowers home values.
When you use a local Realtor, the goal is to Sell for Top Dollar
keeping Home Prices in line.
When a Home is being Sold by an iBuyer,
it's always vacant, which is resulting in more break ins and crime.
Some Feedback from people who have used an iBuyer is:
they have an Inspection done and use it to have priced lowered...
they tell you there fees are the same as using a Realtor...
you don't know how much you're actually getting until the end...
