Covid-19 has moved everything online, including the house selling process. This led many people to think that it’s a good idea to sell to an iBuyer while this pandemic lasts. Is this truly such a good decision as you might think?
Coronavirus pandemic has brought many changes to the real estate industry. First and foremost, the home selling process moved toward digital space, which means you can complete almost everything online. This has made selling and buying houses much easier, and perhaps even faster. At the same time, this may be a good sign for the fairly new kind of home buyers, the iBuyers, that thrive in this environment.
As almost every step in this process can be completed online, many think they should sell to an iBuyer, as this seems like the logical next step. However, there are some risks that come with working with iBuyers that a lot of sellers aren’t aware of.
How iBuyers Work?
If you’re thinking to sell to an iBuyer during Covid-19 pandemic, you should know how they compare to your local buyer in Milwaukee.
Property owners looking to sell their house through an iBuyer use an online platform to request an offer. On the website, the owner fills out information regarding the property, as well as disclose any known issues. If the property meets the criteria set by the company, the platform will evaluate the house and conduct an appraisal. Then, typically within 48 hours, the iBuyer will make a cash offer. Suppose the seller accepts it, the iBuyer will send an inspector to verify everything. If they do find something wrong, they might request the seller to repair it, or the repair cost will be deducted from the offer. Once everything is completed, two parties can choose the closing date.
Why This Isn’t Such a Good Idea
On the first glance, it seems like a great thing to sell to an iBuyer, especially know when the traditional way of house selling isn’t recommended. However, even though this is a very safe way to get rid of your Milwaukee property health wise, this method isn’t without its cons.
First off, when you sell to an iBuyer you should expect getting less money than if you worked with a direct buyer. Also, you may be required to pay certain fees, which tend to be much higher than expected. In fact, these fees can be up to 15% higher compared to fees of an average real estate agent! If you look at the estimated price of your house, this can end up being thousands of dollars.
Not just that, but iBuyers have a specific way in which they create their offer. Most variables are accounted for, true. Others, however, aren’t, and this includes features such as a great location, fantastic view or a short commute. All of these make your home special, and if you sell to an iBuyer, they won’t appreciate such advantages. This will devalue your house, something that can never happen if you sell your house to a local buyer, such as Sparks Property Investors LLC. Direct buyers can complete the sale as fast as iBuyers, but without those additional costs or fees.
Also, working with an iBuyer can lower the value of houses around you. The price that your house was sold for affects the price of houses around you. If you accept such a low offer, this data will be used for CMA’s on local homes, which will result in price drop. iBuyers don’t really care about this, as they don’t feel the connection to the neighborhood the same way you do.
Why Should You Choose a Direct Buyer Instead?
If you work with a local direct buyer, such as Sparks Property Investors LLC, you can experience numerous advantages of this method for yourself. Sparks Property Investors LLC will make you a direct offer, but we won’t force you to pay any additional fees or commissions. Also, we will likely give you a better offer, as we care about you and your situation, as well as about the local housing market. Our goal is to help you, to listen to your story and to give our best to fully understand your goal. Also, we will answer any question you might have, without any obligation or cost. This is to prove we are willing to help you no matter the outcome. Working with us is much more beneficial than if you sell to an iBuyer, or even if you list with an agent in Milwaukee. And if you are worried about the current situation, we can assure you we’re taking all precaution measures necessary to keep all parties involved safe. Most steps can be completed online, as well. Not just that, but we’ll pay you in cash, and we can close the sale for up to seven days!