Is it time to sell your home? There are a number of selling options in the new decade. Listing with a traditional full service real estate broker, listing with a discount broker, for sale by owner including do it yourself social media type advertising, and the latest trend, the iBuyer. iBuyers are becoming a significant factor in real estate markets accounting for up to 4% of transactions in 2019. The appeal is understandable. No listing, No showings, No repairs, No clean-ups. Some companies will even move you as part of the deal. But of course, the convenience is not free.
iBuyer companies will make an offer (a preliminary offer!) on your property based on an AVM (automated valuation model) usually within a day or so. That preliminary offer usually does not include any type of inspection. The AVM algorithms most often rely on public tax assessor data for the physical properties of your home. Do tax assessor records account for your upgrades, maybe your finished basement with a wet bar, your in-ground pool, the exceptional condition of your home?
The metro Atlanta real estate market is going gangbusters right now! Most competitively priced homes sell within a relatively short period of time. At Market Valuation Group, LLC, we have seen days on market averaging less than 30 for most of the metro area for competitively priced properties. iBuyers are advertising that you can pick your closing date in as soon as 21 days! Most traditional home sales close within 30 days of an accepted contract. The time savings may be insignificant.
iBuyers deduct a percentage for sale commission, costs of repairs and other fees. You may be leaving thousands of dollars in equity behind for the convenience of a cash sale to an iBuyer.
The following Market Watch article is a good primer:
An iBuyer may be right for you if you really have to move NOW! An iBuyer may be right if you really do not want to fix up or clean-up. There is a value to labor and there are sellers that may not be in a position to do repairs and renovations. In all cases you should consider an appraisal of your property before you accept an iBuyer offer. Know what market value is. We can help.