The introduction of IBuyer or “instant cash offer” programs are coming from the new real-estate companies with deep pockets that buy homes directly from homeowners and close the transaction within days. The companies typically do minor repairs and maintenance, then try to quickly relist the home and sell it for a profit. Homes can reappear on the market within a matter of weeks or months, but the key is to buy and sell a lot of houses and do it quickly. It gives homeowners the option to forego the traditional real estate agent-driven buy/sell model for one that offers minimal hassle and disruption, and a well-defined and known timeline. But it is important that you understand the “pros and cons” before making a wise decision that is best for you.
“iBuyers” platforms are in the market to make a profit. So offers across the board are remarkably low for potential sellers. On top of the low offers, there are all the additional fees. A big selling point for “iBuyers” is to cut out the agent in hopes to save money on commission. But when you crunch the numbers, most of the “iBuyers” charge you about 6% on commission fees in addition to “holding fees” while they sell your property and "experience fees" for the time they put into the transaction. Add onto that the closing fees and the costs for repairs and it’s costing you a lot more than a traditional real estate agent would. Merely by offering some added convenience to getting a home sold, they often take a very large chunk of the home sellers hard-won equity.
And while we are on the subject of repairs and closing costs, these are things that are negotiated when working with a real estate professional rather than added to the seller’s tab. With an "iBuyers" sale, there is no option for negotiation.
Once your home is purchased, it will likely go back on the market with repairs for a higher price than for what the seller sold in a matter of weeks. While it would be great to find a company that would buy a home at top dollar with no negotiation, that it not what “iBuyers” are out to do. Once they own a property, their job is to flip it for a profit
The singular goal of “iBuyers” type sale is make money. For sellers that are looking to get a home sold quickly without a lot of hassle, it can be done with an experienced agent too. Eliminating agents from the transaction is not the answer to the complicated process of home selling – being prepared and being aggressive is the answer. With the right agent and pricing strategy on your side, you will come out on top every time.
At Anders, we believe the solution is a hybrid approach...
Instead of eliminating or minimizing the real estate professionals involvement in the IBuyer process, Anders Offers was developed to keep the brokerage and agent involved in the instant cash offer, as well as deliver closed sales to all parties involved.
Anders Offers is a division of Anders Capital Group, LLC. Anders is rooted in real estate investing, construction, and lending. As a result, our criteria for purchasing a property is less stringent than other platforms on the market.
If you are interested in an instant offer from Anders Capital Group, LLC, merely click on the button below -
Be sure to stay informed! Invite me or an experienced real estate agent over to talk with you. This should be done after you have received your net offer from Anders Offers and before you sign any agreement. Let me walk through how much you may really giving up by doing the sale with Anders Offers. If the sale is good enough for Anders Offers to go through with it, given the risks involved, it is also something you should closely look into before handing over your equity.