With house prices soaring, my wife and I have decided it’s time to make a change. We have known for a while now that we want to be able to have a simpler life and slow down our go-go-go lifestyle. A life that truly embraces the less is more mindset just isn’t possible where we are now. The fact we can sell our house for a profit gives us the freedom to actually chase our dreams and find that peace we are looking for. Unfortunately, selling your home takes a substantial amount of work. A lot goes into selling your home and getting it ready to go on the market. Cleaning, getting the house show-ready, open houses, the list feels endless. It is a process that only gets more complex when you add little kids to the mix. Trying to arrange a time to be out of the house at a moment’s notice with kids is something we are definitely not looking forward to. It almost felt impossible with our work schedules to be able to find the time to work, get the house ready to sell, and take care of our daughter. We were desperately looking for a new way to sell our home, and we stumbled upon the concept of Ibuyers. Throughout this article, we will go over our experience with an Ibuyer, how it works, and the pros and cons of working with them compared to a traditional real estate agent.
What Is An Ibuyer?
Ibuyers or instant buyers are real estate companies that leverage technology and unique algorithms to evaluate your home and offer cash quickly without the traditional pain points of selling your home through the market. Sound too good to be true? We thought so too. Let’s take a deeper look at the largest Ibuyer out there, Opendoor.
Like most Ibuyers, there do not serve every location and are selective about the markets they serve. They are currently available in over 40 markets and are constantly looking for ways to expand. Below are just a few of the cities they service and if you are interested in the complete list of cities they cover click the link here.
- Asheville
- Atlanta
- Austin
- Boise
- Charlotte
- Dallas-Fort Worth
- Denver
- Greensboro-Winston
- Houston
- Jacksonville
- Killeen
- Las Vegas
- Los Angeles
- Minneapolis-St. Paul
- Nashville
- Orlando
- Phoenix
- Portland
- Prescott
- Raleigh-Durham
- Riverside
- Sacramento
- Salt Lake City
- San Diego
- San Antonio
- Tampa
- Tucson
What Is The Ibuyer Model?
The basic model of Ibuyers and Opendoor is based on a straightforward model.
1. O ffer a free assessment and make a competitive to below-market cash offer on a property they view as undervalued.
2. Send an in-house inspector to the property and conduct an in-depth inspection.
3. Based on the findings in the inspection, adjust the final offer (if need be) and deduct any required repairs or cosmetic enhancement from the offer.
4. Quickly turnaround and sell the house for more than purchased.
Ibuyer vs. Traditional Home Sale:
When comparing Ibuyer to the traditional home sale, both have various pros and cons associated with them. Essentially with the Ibuyer model, you are sacrificing the maximum sale price for speed and a stress-free sales experience.
| Selling To Open Door | Traitional Home Sale | |
| Fees | 5% seller charge | 6% Commission (standard) |
| Offer Range | 97% – 100% of Market Value | 100% – 104% Market value |
| Closing Costs | 1-4% | 1-4% |
| Closing Timeframe | Completely in your control | Less control and potential overlap with extra fees |
| Repairs | No out-of-pocket costs. Repairs taken out of offer price | Negotaited with buyer |
| Cleaing/House Prep/Open Houses | N/A | Must be down until house is under contract. |
| Seller Conssessions | N/A | Can be requested by buyer |
| Primary Point Of Contact | Opendoor Team | Real Estate Agent |
Is It Worth It?
When it comes to what is the right choice for you, it really depends on two key factors; goals and timeline. An Ibuyer is a great fit if you want to move quickly and have an easy sales experience. For my wife and I, the reason we like them is because the offer is extremely competitive and the fact we don’t have to worry about showing the house with our newborn is a massive benefit to us.
However, we are sacrificing maximum profitability by choosing Opendoor and foregoing the traditional home sale. If you aren’t in a hurry and are more focused on making the most you can, the traditional real estate market will be a better fit for you. No matter what, selling your home can be an extremely stressful time so having more options never hurt anything.
I’d love to know in the comments your experience with any Ibuyers and if you would personally recommend them. So far, we have only positive things to say about Opendoor and would defintely recommend you to at least take a look and see what they would offer you.
