7 Questions a Homeowner Should Get Answered Before Engaging an iBuyer
If you are a homeowner paying attention to the hype surrounding iBuyers you could be curious of what you need to know before deciding to engage with one.
Here are 7 questions that you should answer before engaging.
Does the company work with sellers represented by their own agents?
A huge misconception when determining whether or not to work with an iBuyer is that you should do so alone without representation to save money. However, I would argue that when dealing with corporate entities whose objective is to profit makes it even more important to have a professional protect your interest as a homeowner
2. What company buys homes like mine?
Each iBuyer has specific criteria that describe the homes they are looking for known as a “buy-box”. The buy-box usually states the strategy, be it buy-and-hold, fix and flip, whole-tails which are homes needing almost nothing. The buy-box will outline any constraints on the year of the home, the style of the home, and or the location of the home.
3. What are the fees associated?
When you are dealing with an iBuyer often the speed and convenience you will get doesn’t come for free. According to Keeping Current Matters, the average service fee also known as convenience fees is 9%. However, this varies from iBuyer to iBuyer!
4. What other perks/incentives do they offer?
Many of the iBuying companies are large entities that have national relationships that sometimes they will leverage to sweeten the deal for a homeowner. It could also mean having the opportunity to benefit from other arms of that iBuyers company
5. Do they offer leasebacks?
Not sure where you are going upon your move? Some of the iBuyers offer the opportunity to lease the home back for a daily rate upon closing.
6. Will they buy a tenant-occupied property?
If you have tenants you will need to know whether or not the iBuyer will purchase the property with tenants. Some iBuyers have this as a hard no while others may be a little more flexible
7. What don’t I know that’s going to cost me money?
While most of the iBuyers buy homes in as-is condition they will usually seek concessions for repairs. The best thing to do to mitigate opportunities for surprises is to have a home inspection done on your home whether you are selling to an iBuyer or on the open market.
Considering the multitude of different things you must know about an iBuyer to give yourself the best opportunity for a smooth transparent process, we highly recommend using a licensed agent to help you navigate through the process. Most of these companies agree which is why they will work with your agent. You should establish your agent relationship prior to reaching out to any of these companies as not doing so is likely to result in you receiving very biased information.
My team and I specialize on being the experts in the space. If you are considering a cash offer on your home visit me here.