i-Buyers are a new way to sell your home fast, but how do they work and is it really worth it?
We’re breaking down the process and answering the most common questions asked about this new home-selling trend and giving you our tips and best advice on how to sell your home at top dollar!
What are i-Buyers?
An i-Buyer is a real estate investor that uses an automated valuation model, also known as an AVM, and other technology features to make a cash offer on your home. Because of the advanced technology, many of these real estate agents compare your home’s market value to other homes in the area, and oftentimes never look at your home before they make an offer.
So, if selling your home for cash, as quickly as possible is what you’re looking for, an i-Buyer might be right for you.
How does the i-Buying process work?
In simplest of terms, the i-Buying process is relatively easy and quick- but the only catch is that you will end up selling your home for far less than its market value.
Let’s paint a picture of how it works.
Let’s say your home’s market value is $320,000 and an i-Buyer offers to purchase your home for $300,000. You accept because the cash sounds great and the transaction is sure to be fast. However, they will charge you a fee for their carrying costs while they market the home to sell for themselves. This lasts roughly two to three months at $2,000 to $3,000 per month, which rounds out to about $8,000. So, now your $320,000 market value home is sitting at $292,000.
From there, your home will go through standard inspections that bring to light any issues like sewer damage, water line problems or termites. Almost all homes have some issues like this, and on average it will cost you $5,000. So, now your $320,000 market value home is sitting at $287,000.
Once the carrying costs and inspections are done, the i-Buyer will charge you a six-percent commission to purchase your home, which in this case is $17,200. This brings the net sale of your $320,000 home down to $270,000.
So, is there a more cost effective way to purchase with an i-Buyer?
Absolutely! If you decide you want an i-Buyer to purchase your home and you ask us to represent you prior to beginning the transaction with them, you will only have to pay a 2.4 percent commission and our $2,000 fee. In the scenario above, this would be an instant savings to you of over $8,000, and you get our representation during your entire transaction, all the way to closing.
By using us, we also might be able to negotiate a better deal on the carrying and repair costs with your i-Buyer. Or if you’re just simply unsatisfied with the low ball offers you’re receiving from i-Buyers, and want someone who can walk you through home selling process, we can list and sell your home quickly and for top market value!
i-Buyers sound exciting and fast, but if you’re uncertain about your options we’re happy to help. Give us a call today at (919) 844-1152, and let us answer any of your questions!