Even if you aren’t thinking about selling soon, you’ve probably seen ads from big companies that promise to give you a cash offer for your home. It almost sounds too good to be true, right? Well, it usually is—but these companies, often called iBuyers, are still growing in popularity.
Here’s Why You Shouldn’t Work with an iBuyer
In a nutshell, iBuyers are companies (like OpenDoor and Zillow) that use algorithms to price homes and make cash offers to sellers who want to move fast. Once they buy a home, they’ll typically make some changes and sell it for a profit. While iBuyers seem to streamline the selling process, there are quite a few hidden drawbacks that you need to know about. Here are a few.
You could miss out on hard-earned equity
Perhaps the biggest con that comes with using an iBuyer is losing out on some equity. iBuyers often tout the convenience of their services, but what they don’t tell you is that they’re trying to make a profit. Although you’ll probably receive a full cash offer for your home, it probably won’t be as much as you’ll get from working with an agent.
iBuyers also tend to use outdated or inaccurate algorithms to price your home. Because you’re working with a computer—not a person—they won’t be able to factor in your home’s unique features or any improvements you’ve made over the years. That means you’ll walk away with even less money in your pocket!
You’ll pay more fees
Many sellers turn to iBuyers to avoid paying agent commission. While this seems like a smart strategy, you may get saddled with hidden fees and pay more out of pocket than you might expect!
The average iBuyer charges 7 to 8% of a home’s sale price. To put that into perspective, you’d be paying around $15,000 to sell a $200,000 home—and that’s a lot of money! However, the average agent charges just 6% or less to sell a home, and that rate is almost always negotiable.
They lack a personal touch
Selling a home is both a financial and emotional decision. There are countless factors to consider throughout the process, and it helps to have a professional by your side from start to finish. When you work with an iBuyer, you won’t have that point of contact—all you’ll have is a computer or phone screen.
Today’s agents do so much more than stick a “for sale” sign in your yard. They’ll help you price your home right, stage it to perfection, market it to the right buyer, negotiate on your behalf, and guide you through all the paperwork. That’s something an iBuyer simply can’t do!
Bottom Line: Agents still have an advantage
If you’re looking to get the most out of your home sale, working with an agent still remains the best possible option. However, you may want to work with an iBuyer if you’re willing to sacrifice equity for convenience.
Not sure which option is right for you? Be sure to do your research and chat with a real estate pro before making a decision!
Selling Your Northeastern Mississippi Home?
If you’re thinking about selling a home in Northeastern Mississippi, J.Morris Realty is here to help. We have all the tools you need to maximize your profit and move quickly—just contact us today to learn more and begin your real estate journey!