Who is the Best iBuyer?
The real estate world keeps evolving with new trends emerging every single day. Nowadays, buyers and sellers of homes have more accessible, faster, and better ways of doing business. One of the latest trends taking the real estate world by storm are iBuyers These instant, online buyers have come in handy to accelerate the home selling process and help home sellers who want to get their money as soon as possible.
These iBuyers are legit and funded by billions of dollars. Some are even owned through large real estate platforms, making it incredibly easy to transform how people buy homes. If you’re coming across this for the first time, don’t worry. We are here to answer who the best iBuyer is on the market and what you need to know before you sell.
What Is An iBuyer?
The “i” in iBuyer stands for an instant. An iBuyer is a company that buys a house instantly from the seller then puts it back in the market for resale. Working with an iBuyer provides a more streamlined house selling process than the traditional sale.
Usually, traditional home sales take a lot of time before you can even put your house on sale, leave alone get a buyer. If you list with a real estate agent, you’ll go through all the processes which involve waiting for offers from buyers, showing, and escrow. On the other hand, iBuyer spares you all the trouble by buying your home directly.
The companies give home sellers cash offers which only take 24 hours or less. If you work with other companies like Opendoor, you can get a cash offer on our home instantly.
Selling property through an iBuyer is ideal for those who need quick cash and are willing to take a little less than they would if they were listed with a realtor. As a result, you get something slightly lower than your home’s value but at the expense of a smoother and quicker transaction. Don’t sell to iBuyer if you can’t accept a lower price for your home.
Homebuyers can also work with iBuyer companies to get their dream homes. Each iBuyer company has its website where those interested in buying homes can view their preferred ones and request information. Like sellers, buyers who go through iBuyers also enjoy quicker closing than the traditional home buying process.
The Best iBuyers
While iBuying is a new concept in the real estate industry, some companies have already embraced it and are doing well. The iBuyers like Offerpad, Opendoor, and Zillow Offers are currently the top iBuyers in the market. Opendoor was the earliest company to grace the market in 2014, followed by Offerpad in 2015, and finally, Zillow joined the market in 2018. Here is a much detailed review of the best iBuyers.
1. Opendoor
Having been on the market the longest of any of its competitors, Opendoor is the biggest and most well-known iBuyer. The company uses an in-house AVM system to make instant offers to home sellers. However, they charge the sellers a 7% transaction fee once they complete the process. While many sellers may deem this a considerable amount, real estate experts seem to disagree. According to these experts, the 7% transaction fee is more than the commissions you’ll pay when you sell your home through the traditional methods.
In addition to its traditional selling services, Opendoor also has a ‘soft’ iBuyer program that allows buyers to make cash offers on homes. They even have a partnership with Realtor.com to facilitate their process of making offers on homes.
Opendoor iBuyer currently serves Phoenix, Dallas, Atlanta, and Raleigh. However, as people continue to accept the iBuying concept and online real estate transactions expand, there’s hope they’ll soon branch out to up to 30 other cities.
2. Zillow Offers
Another big name to watch out for in the iBuyer market is Zillow Offers. New to the iBuyer scene, Zillow joined the iBuyer market in 2018. Because Zillow was already so established in the real estate industry, the service took off quickly. While the company claims that they’re just testing the iBuyer services, it looks like they’re doing great. In fact, the company has already acquired a partnership with some influential financial investors such as Offerpad.
While Zillow seems to be doing well in the iBuyer real estate world, some real estate agents are not happy about it. This is because the company also advertised for the agents, which is their primary source of revenue.
3. Offerpad
Offerpad is trading closely behind Opendoor, with both companies having entered the iBuyer market just a year apart. While Offerpad has not undergone the rapid growth that many of the other iBuyers have seen, their development seems perfectly calculated because they have already acquired good traction in the market. They are currently available in 11 markets primarily throughout the south and south east United States.
Homes offered through Offerpad are stated to only take 24 hours to sell. For convenience, sellers have the option to choose their closing date, which provides them with added flexibility. Offerpad also incurs moving expenses if you’re moving within a radius of 50 miles of your current home.
4. Redfin Now
Redfin Now began its entry to the iBuyer market in 2017 with a few locations in California. Today, Redfin currently commands a significant presence in up to 80 real estate markets within the United States. Another thing that gave Redfin Now an upper hand in the iBuyer scene is its direct partnership with Opendoor.
Potential sellers willing to work with Redfin can go online and view the market value of their homes and see Redfin’s pricing mechanism. This method saves you time as you determine what Redfin Now can offer for your home. Redfin Now does their home inspections in about 30 minutes and gives their sellers an offer within 24 hours. If you don’t like their offers, they also give you a 1% listing agent who’s always on standby waiting to list your home.
5. ExpressOffers
eXP Realty launched the ExpressOffers iBuyer in 2019 as their online platform. So far, the platform has performed incredibly in the market. ExpressOffers give home sellers a perfect platform to quickly sell their homes. The main way they do this is by matching sellers with real estate investors in their area. They even cover states that many current iBuyers don’t cover at the moment.
ExpressOffers give sellers incredible offers before even handling renovations, repairs, or showings. All sellers have to do is accept their offers and choose your closing dates. With multiple offers that this iBuyer provides, you’ll likely get something good to take home.
Home Trade-In Services and Competitive Offers
When selling to an iBuyer, homeowners often weigh the benefits of a quick, competitive cash offer against working with a traditional real estate agent. The allure of a fast, straightforward home sale, without the typical market uncertainties, is compelling for those seeking convenience.
However, it's essential to compare cash offers meticulously. iBuyers like Orchard, for instance, provide an innovative home trade-in service, allowing sellers to align their home sale with the purchase of their next property, ensuring a seamless transition. This service mitigates the common challenge of timing in traditional sales, where sellers often juggle between selling their current home and finding a new one.
Understanding the Financial Implications
The financial aspect of selling to an iBuyer warrants careful consideration. While the promise of an instant cash offer is attractive, sellers should evaluate how these offers stack up against their home's market value. The convenience of an iBuyer's cash offer often comes at the cost of a lower price compared to what might be achieved in the open market through a traditional real estate agent.
Understanding this trade-off is crucial, especially for those aiming to maximize returns from their property sale. It's also advisable for sellers to explore various iBuyer options, like Orchard's cash offer, to gauge the best financial outcome in relation to their home's purchase price and market conditions.
Sell Fast with iBuyers
Are you looking to sell your house quickly without listing, dealing with agent fees, and all the nitty-gritty details of home selling? If so, an iBuyer may be the choice for you. But before that, make sure you understand everything that comes with iBuying and what to expect. Selling a property with an iBuyer means you're going to take home a lot less money than you would if you chose a traditional home listing.
If iBuyer is not your ideal selling option, SimpleShowing still has you covered to ensure you sell your home better and faster. With our low 1% listing fee, sellers can save thousands on the purchase of their home. Contact us and let us know how our team can help you get your home listed and sold.
Conclusion
Choosing the best iBuyer depends on your individual real estate needs. Top iBuyer companies strive to offer fair market value for your property, but it's essential to remember that service fees, closing costs, and the speed of the transaction can influence the overall outcome. Although the allure of a swift, all-cash offer from an iBuyer can be enticing, it may not always net the highest profit when compared to a traditional sale on the open market.
Service fee structures can vary among the top iBuyer companies, and these fees can sometimes exceed the costs traditionally associated with selling a home in the open real estate market. However, the convenience of selling to cash buyers like iBuyers, who streamline the selling process and offer a level of certainty, can be an appealing option for sellers in the right circumstances.
As a seller, it's crucial to consider all factors, including the fair market value of your property, the service fee, and the current conditions of the real estate market. The best iBuyer companies balance competitive cash offers with fair service fees, speed, and simplicity. When considering this option, sellers should not overlook the potential gains from traditional sales strategies. Engage with a knowledgeable real estate company to make an informed decision that aligns with your goals and needs.