You’ve likely heard the latest buzzword in real estate – iBuyer. Although some think it stands for internet buyer (since a lot of the activity is over the internet, it is actually Instant Buyer. It is really a new name, along with some new variations, of a segment of the buyers that have been around for decades.
In the past, these buyers might have been known as Investors, Fix & Flippers, Cash Buyers, Broker Buyouts, Guaranteed Sales, and various other names where basically, someone purchased a home as is, in a short time frame, offering the seller convenience and certainty in exchange for a discounted sales price. With the aid of computers, big data, and the internet, that is what many companies are offering today under the label of iBuyer.
It’s similar to if you are selling your car, you can sell it to the end customer, or sell it at a discount to a wholesaler. The wholesaler would purchase it at a discount, clean it up and repair it, and then turn around and sell it to the final customer for the retail price. iBuyers purchase the home from the seller at a wholesale price, clean and repair it, then turn around and sell it at retail.
Most sellers are willing to do the cleanup and minor repairs to a home and then exposing it to the entire market of potential buyers and dealing with the risk of the transaction in order to get the most money they can from the sale. But for some sellers, the benefits of a quick, certain transaction outweighs the higher proceeds.
An iBuyer is just one type of offer you may consider when selling your home, so discuss the pros and cons with your Realtor, as you would with any offer do see what is best for your individual situation.