I recently attended a presentation by a local attorney who spoke on a topic I’m sure some of you have been hearing a lot about lately: iBuyers. An “iBuyer” company, otherwise known as an instant offer company, is a group of investors that will buy homes outright at a discounted rate, promising sellers a more convenient arrangement than listing on the open market. But is selling to an iBuyer really worth it?
According to this attorney, who has studied all recent transactions completed in the Triangle area by one of these companies, it isn’t. Her research found that sellers lost an average of $15,000 in equity by selling to an iBuyer, compared to sellers who chose to list on the open market. And the lower the price of the home, the more money these sellers tended to leave on the table.
Well, they do guarantee a home sale, but when you hear the word “guarantee,” remember that you’re talking to an investor, and they’ll naturally come on strong to get you to sell them your house. If you’re going to talk to one investor, why not play the entire investor market and make sure you get the best price possible?
What these sellers may not realize is that our Triangle market is in desperate need of more listings in lower price ranges. There simply isn’t enough supply to go around, meaning any listing priced at or below $300,000 is bound to receive a lot of attention from buyers—and a lot of competing offers, as a result. Sellers in these lower price ranges have the opportunity to sell their homes for thousands more than their fair market value, but this opportunity goes out the window when they opt to sell to an iBuyer, instead.
Unfortunately, in today’s digital age, we’ve become used to instant gratification. This is part of what gives iBuyers their appeal. Sellers also like knowing that their home sale is a guarantee. But don’t be fooled. The supposed convenience these companies advertise comes at a price that most would agree isn’t worth paying.
The truth is that a traditional listing experience can be just as simple, certain, and stress-free as selling to an iBuyer. Often, it’s even more so. Our team would love to demonstrate how selling with us compares to selling to an iBuyer, so please reach out.
As always, if you have any other questions or would like more information, simply give us a call or send us an email. We look forward to hearing from you soon.