The Pros and Cons of iBuyers

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We are excited to be having some more guest bloggers on our site this week! Today's article is brought to you by our favorite group, Happy Writers Co. They've written an article for us about iBuyers and the pros and cons about using iBuyers like Zillow, Opendoor, etc.  

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Selling a home in today’s real estate market is painfully complex. The idea of a more convenient way to purchase real estate has led to a new figure – iBuyers. For some realtors, iBuying is redefining the way we look at selling properties. Still, as we look into the future of real estate, we must consider the pros and cons of these more technology-driven processes. 

What is an iBuyer?
An iBuyer is a company or person that uses technology to make an offer on a home automatically. iBuyers operate in different ways, but overall they tap into data and artificial intelligence to estimate the value of a property and make an offer. The idea is that this new process will eliminate the burden of trying to price and negotiate the value of properties, making it easier and faster for all parties involved. 

Pros of iBuyers
Those in favor of iBuyers and technology taking over the home selling and buying process believe that it has many advantages, including:

• Convenience: Eliminating the burden to prepare a home for sale or make it available to potential buyers is a huge advantage for sellers. Having someone place a dollar value on your property facilitates home showings and adds a convenience factor that makes it very appealing to sellers.
• Time: In a buyer’s market, the need to sell quickly can work against sellers. An iBuyer can help you choose a closing date that’s further out to give you time to find a new place or arrangement. 
• Predictability: With an iBuyer, you know exactly where everything is during the process. Since you set the closing date, you have an opportunity to arrange your schedule in a more organized way. 

Cons of iBuyers
Of course, selling or working with an iBuyer isn’t for everyone. Some real estate agents are talking about the disadvantages of iBuyers, including:

• Qualifications: Right now, iBuyers don’t operate in every market. You also (as a seller) need to have the type of house they’re after. Houses that need extensive repairs or higher-end homes that are highly customized don’t usually meet the qualifications. 
• Opportunity: Since iBuyers are still new, they don’t have the data that real estate agents might collect about the market. Some iBuyer companies send offers close to the market value, but others have wider gaps that make it challenging for sellers to know they’re choosing the best option. 
• Repairs: Although iBuyers send automatic offers, they will still do a complete assessment, similar to a home inspection. iBuyers might need to repair or replace items to sell your house, which might mean unexpected costs you didn’t account for when accepting an offer. 

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Geraldine Orentas is a writer from Happy Writers, Co. in partnership with Italian linen retailer, Linoto.