November 2022 Real Estate Newsletter

What’s an iBuyer and is it right for you?

Over the past 10 years or so there have been quite a few companies popping up stating: “We’ll give you an offer in 24 hours and buy your home for cash”.

On the surface, this may sound like the perfect fit. You may think… Let’s see, I get top dollar, I don’t have to fix anything and I get a quick sale. Well, that may be true (more than likely, probably not) because these companies don’t just give their money away… they are in the business of making money. Typically, this is how it will actually go: You log into their website and fill out/give them a bunch of information. Their algorithms kick in, calculate how much they will make at a specific price… and then send you an offer…. an offer much lower than you would get if you sold your home on the open market. Now, if you don’t care about making money, and you just want to get rid of it (the home) then this may be the option for you.

Recently, there was a study conducted by ‘Market watch’ and they found that home sellers using an iBuyer made about 11% less than they would have if they would have gone through the traditional channels of using a Realtor. Another study found that iBuyers charge about 13 to 15 percent more in fees than an agent normally does. There is a price for convenience. That being said, if you do go the route of an iBuyer, please have your attorney take a look at the contract/agreement. Realtors use standard forms from the California Association of Realtors. These forms are updated twice a year (if need be) and have already been vetted out in the courts… AND… are designed to protect BOTH.. the Buyer and the Seller. I’ll let you decide on whose side the iBuyers contracts are designed to protect.

Real Estate Markets are ever-changing. To get the most accurate value of your home it is best to have a professional Realtor take a look, do their research and then give you a price.

FUN FACTS from The Old Farmers Almanac: !!!!! Domesticated turkeys have white tipped tails while wild turkeys have dark tipped tails. !!!!! Only male turkeys ‘gobble’, usually in mating season or when disturbed. !!!!! The average person eats about 15 pounds of turkey per year. !!!!! The loose red skin attached to the underside of a turkey’s beak is called a waddle and the fleshy flap of skin that hangs over the turkey’s beak is called a snood. (Who makes up these names anyway).

If you have any questions about this or any other real estate related matter feel free to call and if you know of anyone that is thinking about selling (or buying) please call me with their contact information so that I may give them Excellent service. Take care and be safe out there.

Ron Hier

Posted in