iBuyers in Real Estate
iBuyers in Real Estate
Do you know what iBuyers in Real Estate are?
What does iBuyer mean?
Real estate iBuyers- what are these?
Ever heard of iBuyers? I keep on hearing these questions so if you don’t know what iBuyers in Real Estate are, you need to watch this video 👉 https://youtu.be/PUFuxngZJSw
and take in the REAL scoop on these search engines/ media companies turned iBuyers-like Offerpad, Opendoor , Zillow, Knock, Redfin, REX Real Estate Exchange and the rest.
So let’s take in the REAL scoop on these search engines/ media companies turned iBuyers-like Offerpad, Opendoor , Zillow, Knock, Redfin, REX Real Estate Exchange and the rest. We will begin with OpenDoor in this video
Opendoor buys homes directly from sellers, do repairs if needed and then list them for sale as quickly as possible. They are in the home-flipping business, and they’ll likely focus on homes that are uniform, not older than late 70’s, on the lower-end, and will stay away from higher-end or historic homes that are more difficult to estimate value with their Automated valuation model (AVM) property values. The goal- to offer convenience and certainty and to simplify the process.
Now let’s outline in a nutshell THE GOOD:
Opendoor is All About Convenience and, certainty, quick and easy. Opendoor goal is to make the process Simple – besides quick, it offers convenient options when it comes to general home maintenance and repairs, plus if the Seller needs more time to move after originally appointed time, they are provided with the opportunity to “rent” the home back from Opendoor for 14 days after closing to remain in the house before moving.
The Not So Good
-Sales Price: Typically, homes sold on Opendoor sell for about 15%-20% less than on the traditional market. Just 15% translates into $60,000 on a $400,000 home sale.
-Transaction related fees-Experts say that some of Opendoor’s transactional costs are double the average price, and then you throw in a handful of holding and rehab fees, and it gets pretty costly.
– Commissions/ Service fees: Opendoor charges an average of 7% for their services, but their website says that it could be as high as 14%, depending on their holding period forecast (how long it’ll take to sell your home).
– Repair fees-although Opendoor claims that their wholesale savings will be passed onto the seller, these might be pricier than expected.
A Real-World Example, check this downloadable chart.
The Contracts- another not-so-good item, as these are not your typical state-specific contracts. Similar to the uniform contracts introduced by the banks in the foreclosure wave, they are crafted very carefully to make sure the corporate interests are protected 100%, whereas the traditional real estate contracts are created in the spirit of traditional real estate practice, where both sides, Buyer and Seller are protected.