The idea of selling your home without a realtor can seem like a hassle. Trying to do all the marketing, staging, and showings on your own means having another full-time job.
But technology is now making real estate sales easier. You can sell your home to iBuyer companies without posting a single ad online.
Take a look at this guide to working with iBuyer companies in the Fort Lauderdale area.
What are iBuyer Companies?
iBuyer companies can be a home seller’s dream. They are online home buyers that offer instant cash for your home when you are ready to sell.
They use a computer algorithm to determine the value of your home and make an offer usually within a day. iBuyers allow you to save money because you don’t need a realtor to help you with the transaction.
Because iBuyer companies use technology to assess the deal, they can reduce their cost and speed up the closing process. It’s an appealing option for any homeowner who needs to sell fast.
One of the top reasons home sellers prefer iBuyers is the as-is purchase agreement. When a buyer enters an as-is agreement with you, they are agreeing to buy the house without asking you to do any repairs first.
Making repairs usually include things like fixing the roof or upgrading appliances. iBuyer companies won’t ask sellers to pay closing costs either.
That doesn’t mean the transaction comes without fees. But sellers aren’t on the hook for warranties and concessions as they would be with a conventional real estate transaction.
Benefits of a Cash Sale
Cash sales are the gold standard in real estate transactions. This is because there is far less risk to the seller with a cash sale than with traditional mortgage financing.
When a buyer pursues approval on a mortgage loan, the bank goes through every detail of his financial history to determine whether or not to issue the loan. Closing on a house takes a minimum of 30 days with a traditional mortgage loan.
At the end of this waiting period, there is no guarantee the buyer will be approved by the mortgage lender. It is not uncommon for a seller to have to start the process again from scratch when a buyer doesn’t get approved for a mortgage.
If you’ve already secured new housing, having a deal fall through can be a major financial setback. A buyer who can pay for the house in cash skips over the underwriting process because funds are already in place.
The buyer uses certified funds to put the house under contract. Sellers can make the decision immediately as to whether or not they want to accept the offer and begin preparing for closing right away.
What to Expect from iBuyer Transaction
One of the perks of the iBuying process is skipping the uncertainty about whether your buyer can close on the deal. iBuying companies typically know what they can afford to spend on your property based on the algorithm they run before making an offer.
These algorithms help iBuying companies determine the best purchase price they need to offer in order to profit. They do this by analyzing recent sales on comparable properties in your neighborhood.
You won’t need to do any showings when working with an iBuyer. Most companies make offers sight unseen.
To apply for an offer with an iBuying company, simply go to their website and complete a request for an offer on your home. Once you accept the offer you begin the closing process which typically lasts a few weeks.
By using technology to streamline the buying process, iBuyers are able to minimize costs and speed up closing timelines making it an appealing option for selling a home.
Don’t expect to get full market value for your home when working with iBuying companies. The company has to buy your home at a discount in order to profit from its sale.
You should expect to receive an offer between 75 and 90 percent of the value of your home. For some homeowners, this won’t make financial sense because you don’t have the equity available to justify a discount.
But for homeowners looking to downsize quickly on a mortgage-free property, iBuying companies are a godsend. You create a win-win situation by providing an asset to an investor in exchange for a quick, hassle-free purchase.
South Florida iBuyer vs. Real Estate Agent
iBuying companies aren’t for everyone. Sellers who relish the idea of making the maximum amount possible on their homes aren’t usually a good fit for iBuyers.
When you work with an iBuyer, you give up the right to improve your property to get top dollar. Also, iBuying companies can have fees that are much higher than the cost of working with a real estate agent.
This varies from transaction to transaction based on the type of property you own and the local real estate market. These fees are worth it for any home seller that needs a stress-free sale with little interaction with the buyer.
These transactions are ideal for second homes or properties you inherit out of state. For example, if you’ve never lived in a property, it’ll be difficult to answer buyer questions about the age of the roof or the plumbing system on the home.
Cash for Your House
The Broward, Miami-Dade, and Palm Beach areas are a draw for iBuyer companies because of the stable market and predictable home prices. If you’re looking for a quick sale, consider reaching out to more than one source for an offer.
An offer isn’t legally binding and will help give you an idea of what your home might be worth to an investor in your area. For more information on ways to sell your home quickly, contact us today.