Thinking of selling your home in the Raleigh suburbs and tempted by the ease and speed promised by iBuyer companies? Choosing whether to work with a real agent or an iBuyer to sell your home is a BIG decision—one which shouldn’t be taken lightly or without complete understanding of how the selling process works with each.
So… iBuyer vs. Agent. Here’s the final showdown.
Wait… What is an iBuyer?
Long story short, an iBuyer is a company (like Opendoor or Zillow) that uses technology to provide you with an instant offer on your home. Typically, these companies use data such as tax records and sold records to provide an estimate… and make you an offer. If you accept, you get a paycheck and the iBuyer takes over owning, marketing, and reselling your home.
Bottom line: iBuying is the closest you can come to instant online home selling.
Convenience: The Case for the iBuyer
Why is the idea of using an iBuyer so appealing to home sellers? Because it’s fast, easy, and pretty darn convenient. There’s no need to worry about cleaning, staging, repairs, showings, negotiations, home inspections, waiting for buyer mortgage approval… all the stress and hassle that comes with traditional home selling.
Bottom line: iBuying can save you time and effort that normally comes with home selling.
Money: The Case for the Agent
If you’re at all real estate savvy, you’ll take one look at an iBuyer estimate and know that it’s really (like, really) low. In fact, a MarketWatch study reveals that iBuyer transactions net their clients on average 11% less than traditional transactions—that’s tens of thousands of dollars!
So… why does this happen?
Why Agent Sales are More Profitable
There are a few reasons agent sales are so much more profitable.
First, most iBuyers base your home value strictly off data… which is not the same as an in-depth and in-person analysis of your home based on unique and immeasurable qualities—like its yard, its views, and its specific location.
Secondly, the iBuyer’s business model is to buy a home for less… and sell it for more. To make that work, they’ve got to offer you a lower price for your home than it’s actually worth! Working with an agent is kind of like cutting out that middle-man lowball-offer and skipping straight to the part when you sell for more.
Bottom line: Working with an agent will likely mean selling your home at a significantly higher price tag.
Lower Costs: The Case for the Agent
When you work with an iBuyer, you save on commission costs… right?
Wrong!
You read that right. When you work with an iBuyer, even though you never meet with an agent or use any of the agent’s services (read: pricing, staging, marketing, negotiation skills…), you will still pay commission fees for an agent.
On top of that, you’re going to see charges for a lot of other fees you probably won’t quite understand as well—like holding fees, experience fees, convenience fees, and more. In fact, a study by Collateral Analytics found that iBuyer customers end up paying 13 to 15% MORE than those working with a traditional agent.
Personalization: The Case for the Agent
Home selling can be a stressful process. Having an agent means having an experienced expert on your side, every step of the way. It means having someone tell you what your home is worth now… and what it could be worth with a few improvements. It means having someone discuss offers with you… and tell you what’s fair and what’s not. It means having someone you can call, email, text, or even Facebook message if you have any concerns or misgivings… at any time.
Working with an iBuyer… who’s going to tell you whether accepting that offer is a good idea? Who’s going to tell you that with a little bit of work, you could sell your home for thousands more? Who’s going to tell you that your home’s in a totally hot spot and would sell traditionally in just a few days? Certainly not your iBuyer!
Bottom line: Working with an agent adds a personal touch and a sense of security that frankly, an iBuyer just can’t replicate.
Looking for a Seller’s Agent in the Triangle Suburbs?
Are you thinking of selling your home in the Triangle suburbs? Then it’s time to contact Ann Milton Realty. We’re here to help you get the job done RIGHT—pricing, staging, listing, closing, and everything in between!