Considering Selling to an iBuyer? 3 Reasons Why You May Not Want to Right Now
Selling to an iBuyer like Opendoor or Offerpad can be pretty tempting. There’s no staging or marketing your home, you don’t have to make costly repairs, and there’s no one traipsing through your house or combing through your closets either.
It’s also a pretty fast process.
Still, the move isn’t perfect — especially in today’s red-hot market. In fact, with the demand we’re seeing right now, many of those perks come with a traditional sale, too.
The speed? Check.
The no repairs? Check.
You might even be able to get away without listings or showings if you have a great agent.
Are you considering selling your home in the near future? Here’s why selling to an iBuyer might not be the best idea — at least in today’s market.
1. Homes are already selling at record speeds.
Speed is one of the major perks of selling to an iBuyer — at least in any normal year. But in 2021? Selling on the open market is just as fast.
In fact, according to recent data from real estate brokerage Redfin, the average home is selling in just 16 days — down from 38 days a year ago and the lowest point on record.
2. You’ll lose out on the bidding war — and the cash that could come with it.
Bidding wars are the norm right now. A whopping three-quarters of all buyers face a bidding war, which often drives up the price — not to mention profits — for lucky sellers.
Selling to an iBuyer means none of that competition. You’ll get a single offer — no negotiation, no outbidding, and no extra cash. In fact, several studies show that selling to an iBuyer will cost you quite a bit (often thousands).
3. You’ll have to pay for repairs.
The market is so competitive that many buyers are waiving contingencies these days. They’re skipping inspections or, in the event they have one, they’re not requiring repairs — or even repair credits — before closing on the home.
This isn’t the case with iBuyers. Though an iBuyer won’t make you complete the repairs yourself, they will reduce your offer for each issue that needs addressing. It’s just another way you’ll lose out on cash.
A time and a place for selling to an iBuyer
Selling to an iBuyer can definitely be a smart move — but only in the right situation. Given today’s fast-moving market and premium selling prices, you’re likely better off listing on the open market.
Be sure to talk to a local real estate agent about your options, though. Every local market is different, so the right choice will vary.