You’ve probably seen the signs in your neighborhood or the ads on TV. The digital real estate app, or iBuyer platform, is here. If you listen to their marketing pitch, it can seem like a great deal. But dig in a little further, and you’ll see that working with a seasoned pro who fights for you like a bulldog is going to save, or earn, you more money and reduce your stress and headaches. Let’s take a look at what these apps are…and aren’t.
And remember this: your agent’s job is to get as much as possible for your home. The iBuyer’s objective is to pay as little as possible.
First: What the iBuyer Apps Do
These apps use an algorithm called Automated Valuation Models (AVM) to give a fast estimate for the value of your home. From that, they will typically make a cash offer within a day or so. Sounds good, right? No. The truth is, sellers take an average 15% hit on the transaction, according to Collateral Analytics who studied the trends.
But it’s also not that easy. Early in the process, a team of iBuyer inspectors may show up and make demands on fixes. They want a perfect, unblemished home to sell. You can end up with a laundry list of fixes costing big bucks.
Risks of iBuyers Apps
There are also risks to the seller, as noted in the same study. First, the ‘For Sale’ signs on these homes announce that the home is unoccupied, making it an easy target for thieves and vandals. The other risk is what the authors term “adverse selection,” which means the seller is not able to select the right buyer, the buyer who is offering the right price. Sellers and their agents know their homes and can make the best decision.
Why Choose a Realtor Over the Apps
I can see why somebody would consider an iBuyer app. Get the transaction done, fast, and get rid of the stress in selling your home. Let me tell you, you’re just moving that stress into the next phase of your move, and you’re now doing it with less money. And if you’re planning on moving into a new home, you’re killing your down payment power.
Take the stress and worries out of selling your home by working with a real estate professional with the experience to guarantee personalized and customized service. When you work with a full-time Realtor, we’ll take on the burden of the transaction and hold your hand as we work through the process.
A Realtor has more flexibility. Don’t have the money or the time to make the home perfect, like an iBuyer app would require? A Realtor will make that part of the overall negotiation.
It’s About Experience and Marketing
A full-time real estate agent with decades of experience has the knowledge to market your home properly. A lot of work, and inside knowledge, goes into building out those listings. Those listings attract the right buyers. Your Realtor knows the neighborhood, understands the economic development of the area, can tell you about the school system, and even has some insight into the people living on the block. So when a buyer comes around, your Realtor is armed and ready to negotiate and get top dollar for your home. An app can’t do that, and it won’t do that.
So, the choice is one of convenience — selling your home fast for less — versus working with a pro who will get you top dollar and remove all the stress. Why have fast food, when you can dine gourmet? Let me show you how you can be treated like royalty when looking to buy or sell your castle.