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    iBuyers are changing home sales in the real estate market. In fact, recent data shows that these tech-powered companies have already increased home prices by as much as 2.8%.

    This is a clear indication that this phenomenon can’t be ignored. As a realtor, it’s crucial to understand the iBuyer inside and out to be able to stay competitive.

    This article will tell you everything you need to know about iBuyer and how you can leverage it to grow your business. 

    What Is an iBuyer?

    An iBuyer, short for “instant buyer,” is a company that uses advanced technology and data analysis to make speedy offers on homes.

    It uses an automated valuation model (AVM) that analyzes the prices of similar nearby homes and combines this data with a home’s unique features to estimate its value. This simplifies the selling process since everything can be tracked in an integrated dashboard. 

    But aside from real estate feeling the benefits of automation, the iBuyer phenomenon is particularly appealing to sellers—which can be appealing to sellers who need to sell their homes quickly due to various reasons.

    The iBuyer trend started in the early 2010s, and even to date, only a few companies are dominating the market, mainly Opendoor, Offerpad, Zillow, and Orchard

    These companies offer a glimpse into the potential future of real estate sales by leveraging existing platforms and websites. This streamlined approach could become the standard for property sales. With the integration of AI, these platforms might function like personal shopper apps, tailoring information to individual buyers. 

    Additionally, virtual property tours, similar to those in the metaverse, may become the new norm, heralding significant changes in the real estate industry.

    But how do these companies affect the traditional relator? Let’s look at some pros and cons for you as a realtor. 

    Are iBuyers the Best Choice for Sellers?

    Whether iBuyers are the best choice for a seller depends on their priorities. If a seller seeks a swift and hassle-free sale, iBuyers can be an excellent option. 

    However, if a seller prioritizes getting the highest price or desires a personalized experience, then engaging a traditional real estate agent is the better choice. At the end of the day, there are both pros and cons to consider: 


    • iBuyers offer fast sales, reducing the time your property spends on the market.
    • The process is straightforward, sparing you from the complexities of traditional real estate.
    • iBuyers remove common selling headaches, such as showings and negotiations.
    • Sellers receive a predictable cash offer, providing financial certainty.


    • iBuyers may provide lower offers compared to the potential market value through traditional selling methods.
    • iBuyers operate in select markets, which may restrict access for some sellers and prevent you from reaching your KPIs, especially if there are multiple iBuyers in the market you’re targeting.
    • Sellers should be aware of fees and costs associated with iBuyer transactions.
    • The transaction lacks the personal touch and customization you might receive from a traditional real estate agent.

    How to Position Your Value Proposition and Thrive in an iBuyer-Dominated Market

    Thriving in an iBuyer-dominated real estate market requires adapting and highlighting your unique value as a realtor. Here are some tips on how to stand out and position your value proposition in the industry:

    1. Leverage local expertise. Emphasize your in-depth knowledge of the local market. Highlight how you can provide insights that iBuyers, often unfamiliar with specific neighborhoods, cannot. Explain how you can guide sellers to make informed decisions based on local market conditions and trends.
    2. Personalized service. Showcase the personalized service you offer. Emphasize that you cater to each client’s unique needs, preferences, and goals. Highlight the attention to detail and individualized guidance you provide throughout the entire transaction process.
    3. Leverage trust and relationships. Build strong relationships and trust with your clients. Stress the importance of understanding your clients’ objectives and being a reliable partner throughout the selling journey. Use client testimonials and success stories to illustrate your commitment to their success.
    4. Leverage your network. As a realtor, your strong point is your wide network of experts, like inspectors and roofing professionals. iBuyers may make sales quicker, but they can’t match your expertise in assessing a home’s condition and providing the necessary fixes. Highlight your partnerships with these specialists to provide a more thorough and tailored service. This can greatly influence potential buyers—they’re getting the full home package and not just a mere property.
    5. Customized solutions. Develop customized solutions for your clients. Explain that you tailor your strategies to suit the unique circumstances of each seller, ensuring that they receive the best possible outcome in their specific situation.
    6. Educational resources. Provide informative content to help sellers make informed decisions. Offer guides, market reports, and expert advice that can help them understand their options and the advantages of working with a skilled realtor.

    Advantages of iBuyers for Relators

    While iBuyers can be seen as competitors to traditional realtors, there are a few potential benefits that iBuyers can offer to real estate professionals. Here are some of the benefits you might get if you partner with an iBuyer.

    • Referral opportunities. You can receive referrals for clients who may not be a good fit for iBuyer services, such as those with unique properties or specific needs.
    • Fast commissions. iBuyers often complete transactions quickly, which can allow you to earn commissions faster compared to traditional sales.
    • Increased inventory. As iBuyers purchase homes, they can increase the available inventory, potentially leading to more sales opportunities for you.
    • Networking. Collaborating with iBuyers can expand your network and provide access to a broader range of real estate professionals and services.

    Challenges of iBuyers for Realtors

    While there are certain advantages, it’s crucial to be aware of the numerous drawbacks associated with iBuyers, as they have the potential to impact your business and revenues significantly:

    • Reduced need for realtor services. iBuyers streamline the selling process, potentially diminishing the role of traditional realtors. Homeowners may perceive less value in hiring a realtor when they can directly sell to an iBuyer.
    • Pricing competition. iBuyers often compete aggressively on price. This can put pressure on relators to justify their commissions by demonstrating added value in areas such as negotiation, marketing, and local market expertise.
    • Market fragmentation. With both traditional realtors and iBuyers in the market, realtors may need to navigate a landscape with varying business models, which can be complex and challenging.
    • More time educating sellers. Realtors may need to invest additional effort in educating sellers about the differences between traditional real estate transactions and iBuyer offerings to help them make informed decisions.
    • Turbulent real estate ecosystem. Overall, the increasing prevalence of iBuyers alters the dynamics of the real estate industry. Realtors need to quickly adapt their strategies to remain competitive in this evolving landscape.


    As iBuyers continue to reshape the market dynamics, realtors need to also become more adaptable and innovative. 

    As you navigate the market, remember that the power of a realtor lies in the value you bring to your clients. It’s about offering a personalized experience, unparalleled insights, and the assurance of a dedicated professional by their side. 

    In simple terms, your unique value proposition is your competitive edge. A good start would be partnering with an Embrace Loan Officer to ensure that buyers always have financing options ready so as to expedite the process of closing the deal. 

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