If you are thinking of selling your home, you may have heard of a new option called iBuying. iBuying is a way of selling your home quickly and conveniently, without having to list it on the market, make repairs, stage it, or negotiate with buyers. Sounds too good to be true, right? Well, not exactly. iBuying also has some drawbacks that you should be aware of before you decide to sell your home to an iBuyer.
Here is what you need to know about iBuying: what it is, how it works, and what are the pros and cons.
What is iBuying?
iBuying is a term that refers to the practice of buying and selling homes using online platforms and algorithms. The “i” stands for “instant”, because iBuyers can make an offer on your home within 24 hours of receiving some basic information about it.
Some of the most well-known iBuyers are Opendoor, Zillow Instant Offers, Offerpad, and RedfinNow. These companies use data and technology to assess the value and condition of your home, and then make you a cash offer that you can accept or reject. If you accept the offer, you can choose your closing date and move out at your convenience. The iBuyer then takes care of any repairs or renovations needed, and resells the home for a profit.
How Does iBuying Work?
The process of iBuying is relatively simple and straightforward. Here are the typical steps involved:
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- You go to an iBuyer’s website and enter your home address and some details about your home, such as its size, age, features, and condition.
- The iBuyer uses an algorithm to analyze your home’s data and compare it with similar homes in your area that have recently sold or are on the market. Based on this analysis, the iBuyer generates an initial offer for your home within 24 hours.
- If you are interested in the offer, you can request a home inspection from the iBuyer. The iBuyer will send a representative to your home to verify its condition and features, and to identify any repairs or improvements needed. Based on the inspection, the iBuyer may adjust the offer up or down, or keep it the same.
- If you agree to the final offer, you can sign a purchase agreement with the iBuyer and choose your closing date, which can be as soon as a few days or as long as a few months. You can also choose when to move out of your home, which can be before or after the closing date.
- The iBuyer pays you in cash at the closing, and takes over the ownership and responsibility of your home. The iBuyer then makes any necessary repairs or upgrades to your home, and lists it for sale on the market.