Hey everyone, it's Brian, your go-to guy for home loans and real estate.
Today, I want to quickly discuss the iBuyer home selling program and how it can significantly diminish your equity. Recently, I got a call from a homeowner in Menifee who wanted me to evaluate their property for a potential sale. After inspecting their beautiful home, I estimated its value between $775,000 and $785,000.
During our conversation, they mentioned they were considering an iBuyer program—let's just say it's a well-known company that promotes convenience. While the idea sounds appealing, a closer look at the costs reveals it's often not in the seller's best interest. They showed me the iBuyer’s net sheet, and after reviewing it, I compared it with my own figures. The couple expressed that they wanted to avoid the hassle of showings and open houses, and were willing to pay a convenience fee of $5,000 to $10,000 for that ease. However, I believe that amount is significant. I would prioritize maximizing the sale price instead.
When I broke down the costs, the difference was astonishing. The iBuyer had low-balled their offer at $750,000 and included various fees—5% for selling costs, inflated closing costs, and an estimated $25,000 in repairs. In contrast, my approach would allow them to sell closer to $775,000 with much lower fees and minimal repair costs. In fact, using my estimates, they could end up with an extra $54,500 in their pocket compared to the iBuyer offer. That’s a substantial sum for merely opting for convenience!
It's essential to remember that these iBuyer programs are designed to profit, and they often capitalize on homeowners' desire for a quick and easy sale. If you're considering selling, I encourage you to weigh your options and work with a knowledgeable agent who can maximize your return.
If you have any questions about selling or the iBuyer program, feel free to reach out. My team and I are here to help with all your real estate needs.
Take care!
