What’s Your IBuyer Experience?

WHERE DOES IT HURT?

Let me start off by saying, yes, IBuyers satisfy a need in the home selling market. That’s kind of obvious since their success and expansion in many markets throughout the country is testimony for their business model.

So what is that need? There are home sellers that just don’t want to deal with what goes into selling a home. They don’t want to deal with getting their home market ready by fixing this and repairing that. They don’t want to have to keep their home neat and tidy as it’s being shown to prospective buyers. They just want to snap their fingers and have their home sold. IBuyers can do that.

Just like any convenience in this “have to have it now” society, it comes with a price. If it hurts too much to bring your home up to market selling standard and to keep it clean for showings, than just pay the price, and that pain goes away. But…what is the price?

Now we’re getting somewhere. Where does it hurt more: in getting your home market ready and keeping it that way until it’s sold OR potentially, paying tens of thousands of dollars for that convenience? You get to choose and apparently, many home sellers are willing to pay that hefty price tag for the convenience of washing their hands free of their home in order to quickly move into another. And I’m good with that. To each his own.

WHAT THE SELLER DOESN’T KNOW

Do you really believe the IBuyer is willing to give you market value for your home? Of course they’re not willing to give you market value because they have to turn around and sell your home!
IBuyers are in business to make money. Yes, I understand there are always exceptions to the rule as there are times when an IBuyer actually comes relatively close to market value.

On the other hand, I have seen sellers get burned big time. I spoke to a seller who sold their home to an IBuyer and when I spoke to him on the phone he said, “I had no idea my house would sell for what IBuyer sold it for!”. What does that tell you? When IBuyer presented the seller with an offer for his home, the seller didn’t know what the market value was for his home at that time. IBuyer sold the home for $17,000 more than what IBuyer paid the seller for the home PLUS the seller had to pay more than the 5-6% commission a traditional agent would have charged.

Granted, I mentioned earlier that IBuyers are filling a market need. However, sellers need to be aware of the total fees they will have to pay the IBuyer in order to go through with the deal. Some IBuyers will advertise fees that they claim amount to less than what a seller would have to pay a traditional agent but when all is said and done, the seller ends up paying way more than what was advertised.

WHAT THE BUYER DOESN’T KNOW

IBuyers will do their own inspections on a home and quite often, they bring in a group of inspectors as a team: inside inspector, outside inspector, general home inspector, etc. Sometimes the current homeowner is present during those inspections and may offer insight into what works and what doesn’t around the home.

The IBuyer is represented by a licensed real estate agent who acts as the listing agent for the property when the IBuyer now turns around to sell the property. This listing agent has a duty per the NC General Statutes to “discover and disclose material facts” about the property. Should the listing agent be present at these inspections in order to satisfy his / her legal duty? Or, maybe it’s not feasible for the listing agent to be present at the inspections but should the agent at a minimum, be given a copy of all inspection reports and understand what his / her seller is going to repair or replace? These are important questions because listing agents and buyer’s agents work cooperatively during a real estate transaction and any information provided by the listing agent helps the buyer to determine whether they want to proceed with the transaction.

It’s been my experience that listing agents representing IBuyers never even visit the property prior to listing the home for sale and consequently, don’t have any information to relay to interested buyer’s agents and their respective client buyers.

Photo credit: satguru on Visualhunt.com / CC BY