Pretty much like any industry or business you can think of, times are changing in real estate. With the wonders of technology, it’s amazing what you can do, that you maybe could not do some 10 years ago…maybe even 5. But, in real estate, Should I Use One of Those On-line Companies to Sell My Home?
Should I Use One of Those On-line Companies to Sell My Home?
There are probably countless professions where you will always need “a real person” to make it happen. A plumber? Fix your A/C? A Dentist? A Doctor? A real estate agent?
There is a new “disruption” in the real estate world with several on-line companies that are offering to help you buy or sell real estate. I’m sure you’ve seen the ads for OpenDoor and OfferPad, and now even Zillow is launching a home buying service. The question is, can you “automate” the biggest financial transaction of your life? Hmmmm.
In the article I’ve shown below that just appeared in REALTOR Magazine, it’s not all peaches and cream when you choose one of these options. In the article below, these companies are referred to as iBuyers. They business model is promising to streamline the real estate transaction with quick, all cash offers. This way, you (as a Seller) bypass the longer process of listing your home, going through showings, negotiations (maybe more than once if a contract falls out) and such. But, an all cash offer will often have a catch. And with an iBuyer, the catch can be quite a challenge.
The iBuyer, Opendoor, after their offer was accepted, came in with a TEAM of contractors, and when all was said and done, wanted new bathtubs, new toilets and a host of other things. In a nutshell, they wanted a remodeled house and they wanted the Seller to pay for it. (Not that I’ve not had the same thing happen in a real estate transaction, but it was not as dramatic.) The agent ……ah….note I said real estate agent spent weeks negotiation with Opendoor. They had requested some $16,000 worth of repairs on a $300,000 home. Shreeeek! Those weeks spent negotiating with Opendoor…..in an agent-driven transaction, that process would have been resolved in a matter of a couple days, during the Due Diligence period. The parties would have agreed on a price, or the contract would have been terminated. In DAYS….NOT WEEKS!
What kind of valuable marketing time was lost in looking for another buyer that would have purchased the home with perhaps minimal repair requests…not new bathrooms?
The article quotes an agent from right here in Atlanta that helped clients sell their home to Knock. (NOTE….”agent helped clients sell their home to Knock.”) And in this instance, there were multiple people involved from the Knock-side of the sale. As they sale moved along, there were “a lot of missed loops and extra follow-up needed to make sure everything was going smoothly for our Sellers.”
Having not worked with any of these iBuyers, I’ll make the assumption that these agents did not work for free, and were paid a commission, either by the iBuyer or by the Seller.
The priceless mention is an agent in Phoenix who had an iBuyer make an offer of of $750,000 on a home that the agent later sold to a traditional buyer for $900,000. Imagine leaving a $150,000 on the table they would have moved on the iBuyer offer? Of course, there can be any number of circumstances behind any of these sales that we are not aware of.
Should I Use One of Those On-line Companies to Sell My Home?
I think it is a decision that cannot be made lightly. In the article below, and as I’ve highlighted, there were agents still involved to help the Seller SELL to the iBuyer. And it seems like there were a lot of added steps and ‘i’s to dot and t’s to cross’ to make it all happen. And unless you have bought and sold numerous properties on your own already, there could be a land mine someplace you’ll miss.
But if you can sell your home for more money, working with a real estate agent, than you can selling it to an iBuyer, you’ll probably see, or do the math and agree.
There is a lot of things that go on during the sale (or purchase) of a house that the agent is involved with, or handle. As agents, we may be bad in not letting you know every little thing we do. We just do it to keep it as stress-free for you as possible. We are kind of a stress ball in the process and keep as much of it from you as possible.
It’s not because I AM a real estate agent, but I think when you are working with the largest part of your financial portfolio, your home, you’ll want someone right there with you helping you through the process, and being your advocate to make sure you are protected and have the best possible outcome you can.
The link below will give you the entire article.
