iBuyers are investors that use an automated valuation system to determine a price to offer sellers. These quick offers have become increasingly common in our Twin Cities marketplace, but is it worth selling your home to such a buyer?
Though iBuyers claim that their goal is to help you sell quickly and without the hassle of listing on the open market, their true goal is to buy your home at a low price and then sell it for a profit.
To get to the heart of the matter, our team recently reviewed data from the major iBuyer company Opendoor and compared it to the experience of working with a real estate agent, instead.
On average, Opendoor charges buyers a 7.5% service fee. They’ll also deduct 2.25% of a seller’s would-be profit to account for inspection and repair costs.
A traditional real estate agent, meanwhile, will charge a 6% commission fee on average, with just a 1% deduction for inspection and repair costs.
In the 35 Opendoor sales we reviewed, we found that the sellers left a combined $300,000 on the table. This equates to 3.7% of their equity.
With this data in mind, it’s clear to see why working with an iBuyer is something we usually don’t advise.
If you truly want to achieve the best possible results from your home sale, then you need to leverage the tools, knowledge, and experience that a traditional agent can offer.
If you’d like to learn more or have any other questions about how we can help you sell quickly and for top dollar, feel free to give me a call or send me an email. I look forward to hearing from you soon.
