Will iBuyers Fuel Real Estate’s Future?Return to Blog
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The growth of eCommerce has become an indispensable part of the global retail framework. Like the pharmaceutical, finance, entertainment, and many other industries, the retail landscape has undergone a substantial transformation following the advent of the internet. Due to the ongoing digitalization of modern life, eCommerce now plays a vital role in our daily lives. It is redefining people’s commercial activities around the world.
As we proceed, we will learn about the growth of eCommerce and how record-breaking demand for online purchasing for the duration of the pandemic can lead to more iBuyers. While also touching on why experts believe that buying a home sight unseen at the click of a button may occur sooner than you think.
As internet access and adoption are rapidly increasing worldwide, the number of digital buyers keeps climbing every year. In 2020, over two billion people purchased goods or services online, and during the same year, digital payments surpassed 5.44 Trillion U.S. dollars worldwide.
In this era of same-day delivery, purchasing cars, health insurance, or even your groceries online, it is only expected that houses are next on the ever-extensive list of items you can buy without leaving the comfort of your home.
The general iBuyer process entails answering a short questionnaire online about your home. An iBuyer will then make you an offer based on the automated valuation model (AVM). You can choose to accept or decline the offer — and if you choose to accept the offer, you choose the closing date.
iBuyer platforms rely on AI technology to give you the most current value of your home. The AVM takes your home’s unique features, location, year built, and market trends to compare your property to others that are sold in a similar neighborhood with similar home features.
Now there are pros and cons to every single real estate transaction. Having an iBuyer handle: all of the details can save you time and allow fewer repair people, home cleaning, staging contractors, and inspectors from coming into your home.
Some trade-offs when using an iBuyer may include receiving a lower offer for your home than what a real estate agent may suggest. As traditional real estate agents, add their service fees, marketing expenses, and more; into the selling price of the house. Another difference noted when using an iBuyer instead of going the traditional route of selling a home is that there is little to no negotiation involved since an AI model is used to determine the cash offer.
According to some home inspection websites, iBuyers may come with higher transaction fees and lower sales prices. Since those fees get deducted when the seller receives the offer on their home, you may be unaware of how much you more or less their fees cost when compared to traditional realtor fees. Regardless of the price, either option will cost you. It depends on whether or not you want to know how much.
Ultimately, the decision should depend on your goals and needs as a seller. If you need to sell your house quickly and don’t have time to fix things up or don’t care to, then an iBuyer might be the right choice for you. Just keep in mind that you will likely get an offer for less than your home is worth and have to pay a hefty total of fees as well.
If you have any questions, need help comparing valuations, or are curious about how much more you can earn selling with a traditional Real Estate Agent like Darryl Glass, contact us today at (510) 500-7531 or schedule a call with Darryl directly on his calendar.