Listing Your Home With a Realtor vs. iBuyer Service

What is an iBuyer?

An iBuyer is a company (such as OpenDoor, OfferPad,Zillow, etc.) that will typically offer to pay cash for your home, sometimes sight unseen. If you choose to accept the price they offer, you can close in as little as a few days. 

iBuyers acclaim the process as quick and easy, but at what cost to the seller? iBuyer companies typically offer below market value, potentially costing the seller equity. In addition to offering below market value, they charge a full commission and service fees, that can add up to as much as 13%.

Real Estate Agents vs. iBuyers:

Realtors are licensed professionals who are authorized and qualified to practice the sale of real estate through on-going education and exams. Theyre specialists and experts in regards to the sale or purchase of your home! Realtors can also help you in terms of understanding the area youre moving to, the market and more!

When it comes to your sale or purchase transaction, Realtors are very beneficial during real estate transactions. They tend to be more hands-on during your transaction and provide a more personalized experience.

When it comes to selling your home, Realtors will typically test the market to get you top dollar for your home. Theyll provide you with ample market information and a comparative market analysis, to price your home and help you make a final decision on what yall (as a team) will list your home at on the market.

iBuyers typically provide offers directly, for about 90%-96% of your homes market value, which could take thousands out of your pocket!

Real Estate Agents charge commission on the sale of your home, at a rate of 6%. 3% of the commission will go towards paying the buyers agent and the other 3% of the commission will go to your listing agent. 

iBuyers typically roll the commission charge into the service fee they charge, for the sale of your home. The service fee charged by iBuyers normally range from 7%-10% (sometimes higher), which ultimately exceeds a Realtors commission charge. Realtors do not charge a service fee.

Despite using a Realtor or an iBuyer, closing costs and taxes will have to be paid.

Overall:

iBuyers could end up costing you way more than you initially planned. A comparison of what you could potentially net using a Realtor vs. an iBuyer is listed below:

When it comes to selling. your home, be sure to compare your options and speak with your Realtor! Realtors can provide Net Sheets, for their clients so you can truly compare costs when it comes to selling your home.