Homeowners looking to sell quickly and avoid the hassle of showings, repairs, and lengthy closing processes can benefit from using an iBuyer. These fast-paced platforms—where the “i” stands for instant—are tech companies that buy homes directly from sellers, bypassing third parties like lenders or real estate agents. They can make a cash offer within as little as 24 hours and often accommodate flexible closing dates. However, while this convenience might seem ideal, iBuyer transactions do have some drawbacks.

What is an iBuyer

An iBuyer is a company that leverages technology to provide an immediate offer on your home. iBuyers represent a significant shift in the real estate market, offering a more streamlined and convenient alternative to traditional home sales.

The specifics of how iBuyers work can vary, but the general concept involves the company evaluating your home’s value and making an offer. If you accept, they handle the ownership, marketing, and resale of the property. The main advantages are the certainty of a cash offer and greater flexibility in determining your moving timeline, depending on the service you choose.

How does an iBuyer do business

The iBuyer process is generally straightforward. Typically, a seller provides basic details about their home, or sometimes just the street address, and the iBuyer will make an offer shortly afterward, often without seeing the property in person.

iBuyers use algorithms to estimate the property’s value, streamlining the buying and selling process by eliminating intermediaries like banks and real estate agents.

However, this convenience comes with a trade-off. iBuyers generally offer less than the home’s market value to ensure they can make a profit.

Additionally, even though the initial offer is made without a physical visit, if the seller accepts, the next step usually involves a professional home inspection. Any significant or unexpected issues uncovered during this inspection are likely to affect the original offer.

Is it worthwhile?

Selling your home through an iBuyer might be advantageous if you need to relocate quickly, require immediate funds, or wish to avoid the complexities of showings and a prolonged closing process. iBuyers eliminate uncertainties about when your home will sell and, since they pay in cash, you won’t have to worry about financing issues with buyers.

However, if your primary objective is to achieve the highest sale price, iBuyers may not be the best option. Additionally, some iBuyers charge substantial fees, which can be comparable to or even exceed the commissions you’d pay to a real estate agent in a traditional sale.

iBuyer pros and cons

The iBuyer process differs significantly from a traditional home sale. Here are the key advantages and disadvantages:

Pros:

Greater Certainty: iBuying transactions generally close faster than traditional sales, which involve real estate agents, lenders, and various scheduling issues.

Increased Efficiency: Sellers work directly with a single company throughout the process, avoiding the need to interact with multiple mortgage lenders and agents. This streamlined approach means the transaction can be completed more quickly, providing faster access to funds—an important factor for those needing quick cash or a swift relocation.

Cons:

Reduced Profit: Sellers often receive less money when using an iBuyer compared to a traditional sale. Besides the lower offer price, additional fees may apply, which can total 6 to 8 percent of the home’s purchase price, potentially equaling or surpassing traditional real estate commissions.

Less Personal Attention: iBuying processes are primarily conducted online, resulting in less direct contact with an agent.

Bottomline

Determining whether you should sell to an iBuyer vs listing your home with an agent is a function of your individual needs. Consider how much you value your net proceeds, the timeline of the sale, and the certainty and convenience of the experience itself.

If you’re looking to sell your property for cash, reach out to Illinois Real Estate Buyers to get a no obligation cash offer on your property today.