Is selling to an iBuyer a smart move?

One of the biggest trends in residential real estate in recent years is the influx of iBuyer companies like Zillow, Opendoor and OfferPad. iBuyers buy houses directly from the homeowner and turn them over quickly.

If your objective in selling your home is to maximize the sales price and net proceeds, the iBuyer scenario is problematic. Here’s why. 

The iBuyer is an investor, not a buyer looking to upsize, downsize, or buy their first home. iBuyers have their best interests in mind, not yours. Those interests include answering to shareholders and making a profit. 

iBuyers control the pricing and the terms of the sale. When you sell to an iBuyer, no one is protecting your interests or negotiating on your behalf. In most cases, selling to an iBuyer usually means settling for less money, sometimes considerably less. 

The alternative is to prepare your home to go on the market and expose it to the largest number of qualified buyers. How do you know what’s best in your situation? Does it ever make sense to sell to an iBuyer?

1) If getting top dollar for your home is not a priority and 2) if you want or need to sell quickly, selling to an iBuyer can make sense. You don’t need to spend time and energy getting your house ready for potential buyers because no other buyers will see your home. There are no showings. The deal happens quickly.

iBuyers offer homeowners convenience and ease. They do not offer the opportunity to receive the best price in a competitive marketplace like Denver. People want to live here. Our economy and employment rates are strong. Those factors keep home values high. The cities where iBuyers have made the biggest inroads are cities where home values have plummeted.

If you’re thinking about selling your home, the first step is knowing its market value. Doing your homework before negotiating with an iBuyer is key. You want to be able to compare their offer with your home’s actual worth. 

Remember, iBuyers are investors. They offer convenience, not competitive pricing. Selling to an iBuyer usually means walking away from thousands or even tens of thousands of dollars. Give us a call, we’d be happy to research the market value of your home. That’s the best place to start.