iBuyer versus Realtor
Choosing between iBuyer & Realtor
Other than assisting in the process of a home sale, iBuyers & Realtors work in entirely different ways, including time taken to close the deal to the fees they charge. To understand how to choose to go with a realtor or an iBuyer, we need to understand their roles in the real estate industry.
Role of Realtors
Realtors or real estate agents, they are the most common way sellers choose to sell their homes. This is because it's the most known or traditional way of selling homes.
Once a seller approaches a realtor, he will be taking care of listing to marketing to closing the deal with a potential buyer after proper negotiation & pricing.
Role of iBuyers
Even though it's new, iBuying is becoming popular because of its quick cash & fast selling.
Once the seller inquires on an iBuying website, they will be given an offer price to accept or reject, after proper evaluation of the home. On accepting the offer they can close the deal within a few days, without staging or any repairs. After the deal, the iBuyer would make renovations or repairs to sell in in the market again to make a profit.
Comparing between iBuyers & Realtors
while Realtors help the seller sell their home, using the traditional methods of staging to MLS listing, an iBuyer would offer a price for the home within 24 hours & if accepted, will close the deal within a few days.
But both have their advantages & disadvantages.
Positives & Negatives of Choosing Realtors
Finding a good real estate agent needs proper research. You need to google, check the reviews of the nearby realtors you could afford to sell your home. Once made a list of good agents, talk to them or do an interview before finding the right one.
Once you choose a realtor, the next step would be visiting the home, to evaluate & check details to make a proper listing price for the house. Once the listing price is fixed, the house will be on sale using the MLS system.
To attract or to find a potential buyer, the home might need repairs or renovation, so that you could get a better offer. Open houses are an important part of selling through a realtor, where interested buyers would come to check the house, & that's why staging & renovations are quite important.
The traditional realtor method of selling a home might take more than a month to close the deal because the closing date is fixed by the buyer, not the seller.
Thus, always choose the right realtor to assist you in selling your home.
PROS
- Realtors take a lesser amount of commission money compared to other home selling methods.
- If very fewer repairs needed, the home might be sold quickly, which means better profit.
CONS
- If in need of the better offer price, sellers need to do repairs & renovation on their own.
- Staging to Openhouses expenses & responsibilities should be taken by the seller.
- House might be on the listing for months without getting a good offer price.
- Closing date fixed by the buyer, not the seller.
- Offers that depend on mortgage loan have chances of failing the sale.
- Even after fixing the deal with a buyer, it takes a longer period to close the deal.
Positives & Negatives of Choosing iBuyers
iBuyers make a quick cash offer within 24 hours of the sellers inquire. Sellers can go to redbuyers.com & fill in the details of their home. Within 24 hours, you will be receiving an offer price, which is made after proper evaluation using computer-generated data.
If the seller accepts the offer price, iBuyer would close the deal & give the cash in a few days, convenient to the seller. The best part of dealing with iBuyer is that seller doesn't need to do any repairs, renovation or staging. Once bought from the seller, the iBuyer would do repairs & renovations to sell the house on the market at the right time, to make their profit.
But compared to selling with realtor, you will be charged with the iBuyer.
PROS:
- Cash offer made within 24 hours of the inquire.
- No need for spending on repairs or staging.
- No risk of mortgage loan issues or deal cancellation.
- Enables sellers to close the deal without financial risks or constraints.
CONS:
- In return of the easy & quick sale without staging or repairs, the seller receives a higher fee or less profit is made after the deal.
- iBuyers aren't available everywhere around the world.
- iBuyers makes an offer for homes that seems eligible for resale, that can be sold again after repairs to make their profit.
Summary
Choosing between a realtor & an ibuyer, have their own advantages & disadvantage. To offer the best of both worlds iBuyers & realtor firms are partnering with each other.
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