Today we are going to be examining a case study of the home buying process from two different perspectives: the iBuyer program and the traditional route.
Even if you’ve never heard of the term “iBuyer” before, I’m sure you’ve heard of these programs where someone online will come in and purchase your home sight unseen and you get to pick the closing date and everything’s nice and easy. We recently worked with a seller who was trying to determine whether they wanted to go through this route or the traditional route, and here’s what they discovered.
Through the iBuyer route, they could sell their home for $265,000 and close within just two weeks, depending on a successful home inspection. However, they would also have to pay a 9% convenience fee. In the end, they would net $240,000 with closing costs by choosing to go this route.
As for the traditional route, we did a market analysis for them and came up with a market value of $275,000. They decided to list with us through the traditional route and we were able to get the home on the market and under contract in 15 days. We were also able to close in just 30 days after that. We sold the home for a final price of $270,000 and the seller ended up netting $29,300 more by choosing this route.
An iBuyer program can be beneficial if you absolutely need a quick sale. In that case, this might be the right decision for you.
However, realize that you’re likely going to pay for that convenience. Also, the communication with these programs is poor and the inspection period can be lengthy and troublesome.
With a traditional sale, you have an agent who is working for you from day one all the way until closing. They handle the marketing and negotiations, keeping you informed all along the way. This route will also likely net you far more money in the long run. If good communication and a good price are what you need, the traditional route is the way to go.
If you have any questions for us or you’re curious about what your home could sell for in this market, we would be happy to help. Give us a call or send an email today.