August 25th, 2020
Homeowners today have a myriad of options when it comes to listing and selling their homes and one of the more frequent questions as we see these TV ads all the time now, is, what are the pros and cons of selling to an iBuyer. Traditionally, when selling a home, several steps go into it, including fixing up any damage in your home, minor or significant renovations, staging your home, hiring a realtor, hosting open houses, negotiations, and moving. If you hire a realtor, selling a home will require time and work, and there are some great tips on selling your home, you can try to ease the stress. There are other options than traditionally selling your home, including using an iBuyer.
What is an iBuyer?
An iBuyer, the ‘i’ standing for instant, is a financial company that will pay you for your home in cash. If you’re looking to sell your home, you can check out an iBuyer’s website, put in your address, and answer questions about your home. Within a short time frame, likely 24 to 48 hours, you will have an offer for your home. The process is streamlined and doesn’t require the help of a traditional realtor.
The main benefits of using an iBuyer are time, certainty, and convenience. When you list your home on the market, you have to play the waiting game until your home sells. This can be a matter of days, or it could be months. Selling your asset to an iBuyer can be a process that lasts a couple of days, and you are confident you will sell your home. This is a hugely convenient method of selling and buying versus traditionally buying a home. You don’t need to fuss over realtors, showings, open houses, or when you can move into your future home if it’s dependent on the sale of your current home.
When choosing a convenient route, you will lose money on the profit your home could potentially return. Using an iBuyer means that you pay a premium for the ease-factor. You will be selling your home at a discount. A traditional realtor will take a commission, but using an iBuyer could cost you an additional 10-15% on your home’s price. iBuying is still a relatively new process, so there aren’t numerous companies to choose from, so your options are limited.
Depending on your personal preference, iBuying may be the right choice for you when selling your home. If you’re willing to part with some of your profit for the sake of convenience and saving yourself time, they may be the best option.
Kurtis Forster is a real estate agent for Team Forster in London, Ontario. He brings a wealth of knowledge and expertise about buying and selling real estate.