What is an iBuyer?
An iBuyer is a company that purchases homes directly from homeowners nationwide, including single-family residences (SFR), condos, and townhomes. The entire process usually takes 30-60 days. You can expect to receive your purchase offer very quickly – usually within 48 hours.
The two largest iBuyers are Zillow and ASAP Cash Offer.
Why did iBuyers emerge?
This started because of the housing crisis in 2007. The bubble burst and homeowners were drowning in underwater mortgages (negative equity). iBuyers were formed to help homeowners obtain immediate equity without having to go through a bank.
What is the process like?
First, you’ll fill out an online application on a website like ASAP Cash Offer. Their underwriters will review it and decide if you are eligible for their program (based on their guidelines ). If you are, they will provide you with a Purchase Offer within 48 hours. You have up to 14 days from when you receive the offer to accept the offer or decline it. Once both parties have agreed upon terms, they will send someone to do a detailed inspection of your house. These inspections will determine
How does the iBuyer business model work?
While it may depend on the company, most will ask you what repairs need to be made and how much you want for closing costs. They’ll then buy your home using their own cash and handle all repairs themselves. Since they often deal with similar homes across the nation, they can keep their prices low and close quickly – sometimes within 30 days of signing the contract! When everything’s done, you simply sign the final paperwork and walk away – all at no cosigner or cost to you.
How do I know an iBuyer company is legit?
Long story short, if you can find them on Google they are probably a reputable company. You don’t have to worry about scammers getting your personal information because they only work with licensed agents and companies. Most are legal businesses too so if they approach you, it’s most likely legitimate. Some warning signs include high-pressure salespeople at your front door, late-night phone calls, or high-interest rates on “closing costs”. Make sure the business name matches the person selling it! If an offer seems too good to be true, it usually is!
Selling to an iBuyer: what is the process?
You would start by clicking “Sell My House” on their website and filling out your information. If you meet their requirements, they will send an appraiser to your home to determine its value. They’ll then give you a written offer and contract within 48 hours. After that, they schedule a time for an independent inspector from Your State Inspections Inc. to come by. The inspector will make sure the repairs match the appraisal and make recommendations as needed. The buyer pays for all inspections upfront so there is no cost or hassle to you.
Should I sell my home to an iBuyer?
First, talk to a local realtor and ask about the current market value of your home. How much equity do you have? Do you owe more than it’s worth? What are the costs associated with selling on your own? If an iBuyer can help you get a better offer, it might be worth going through them.
Is there a cost to sell my house to an iBuyer?
There is NO COST TO SELL YOUR HOME TO AN iBUYER. If they say otherwise, they are lying! You also won’t need to sign any paperwork for 30 days so if it doesn’t seem like the right deal, you don’t have to accept it!
How do you choose the right iBuyer?
Check their website and any reviews you can find on them. If it seems like something that would work for you, give them a call and talk to someone in their Homeowners Solutions Department (a lot of companies have this department). Ask about the costs associated with selling your home and what they plan to do to make the process easier for you. Get some background information on the people who will be working with you and ask for references from previous customers (don’t forget to check if they are still happy customers).
Takeaways:
If you’re looking for a quick and easy way to sell your house fast, give an iBuyer a chance! They can provide a lot of benefits that might not be available otherwise. While there are some risks associated with selling to them, most companies will take care of all inspections upfront so there is no cost or hassle to you. Good luck selling your house!
