iBuyers are trying to disrupt the market, but will they end up replacing real estate agents? Here’s my answer.
You may or may not have heard the term “iBuyer” recently. If you haven’t, let me explain. “iBuyers” are organizations that are backed by hedge funds and venture capitalists and they’re trying to disrupt the way homes are sold. Their pitch is that they can get your home sold at the click of a button.
When things seem too good to be true, they typically are. iBuyers will have a place in the market going forward, but they’re not for everyone.
We actually offer our own iBuyer program called My Rocket Listing. This is a program for our clients who prefer convenience over maximum value. Typically, we pay 92% to 93% of resale value for homes based on what we think the home is worth, but we offer cash and a quick close.
The hedge-fund backed iBuyer programs typically don’t do that. In fact, their home values are often about 6% off the mark. That’s a standard deviation of $24,000, on an average house, so it’s really important to understand your home’s precise value before you accept any kind of offer, let alone a lowball one.
Recently, we were able to give one of our clients $65,000 more for their home than an iBuyer did.
You should also know that you can negotiate with iBuyers. I recently helped a client get $29,000 more for their home than the iBuyer initially offered.
Will these iBuyers take the place of agents? Absolutely not. They might take the place of certain agents who don’t take the business seriously, but truly great agents can’t really be replaced or replicated.
If you have any questions about iBuyers or about anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.