Know the Truth About I-Buyers Before You Sell
If you’ve ever worked with a real estate pro before, you know that the process is much more than just a clickable transaction. Anyone who is going to sell a home needs good information provided by a licensed agent. We would recommend that you start by reading our Guide to Selling Your Home. You will see that we provide you with very specific information about what to expect. You don’t need on-line “guesses” about the value of your home. It’s important for you to learn the Fair Market Value of your Home.
We want you to know the truth about I-Buyers. These are mostly on-line companies that allow you to request an offer for your home, sight unseen. They advertise on television and radio. They also purchase bill boards along roadways. You may even receive letters from them in the mail. They make the process seem easy, but they leave out a lot of information.
First of all, I-Buyers accounted for only about 0.2% of real estate transactions in the United States in 2018. In 2021, it is estimated that they only successfully close less than 1.0% of all real estate transactions.
If you accept the offer they make, the company will purchase your home, list it and sell it so someone else. Typically, the offer they make to you is lower than what you would get in a fair market sale with a licensed real estate agent.
Based on our own experience “testing” these companies, their offer is usually about 60% of the real market value of the home. In addition to that, we have learned that the average cost to a homeowner of selling to and I-Buyer is between 8% and 12% of the sale price.
For the purposes of comparison, DMS Properties, LLC Residential Real Estate Services charges a 6% commission for selling a home. Half of that goes to compensate an agent representing the buyer. Using our Homeowner Concierge Service Program, we can also help you coordinate any repairs that are needed to make the sale happen. Our contractors will typically accept payment for their services when the home sells, so there’s usually no out-of-pocket expenses to you.
This is an article that is part of our Client Appreciation Program and is found in the Real Estate Market category.
