Have you ever heard of an iBuyer? If you are a Dallas homeowner looking to sell, you probably searched for the most convenient and reliable options out there. And although these instant cash offers may sound too good to be true, they might be exactly that. The main reason being, sellers give up a lot of the benefits that come with listing your home with realtors. So much so that 99.7% of sellers choose to still work with real estate experts in their area. Let’s go over 3 main reasons why working with an iBuyer is not worth it.
Property value can be skewed
iBuyer services don’t go through the traditional route of listing a home. Instead, they use their own metrics and algorithms to determine the property value. Additionally, they use photos, questionnaires, and in-person visits from an agent to decide on your home’s value. If the iBuyer service is favoring investors, your newly remodeled home will simply be torn down and renovated all over again, which means there’s no proper ROI for your property. On the other hand, if there are no renovations, your property’s value will be affected.
Your home is worth more than you get
Since your property value can be skewed, you are not likely to receive what your home is worth. Especially when there is no true formula behind iBuyer algorithms, as they determine the value of your home regardless of traditional market conditions. There is no set loss in buying with an iBuyer, but from market statistics sellers lose over 10% of their property value. To put it in perspective a $250,000 home will lose more than $25,000 of its worth and a $1,000,000 home will lose over $100,000 of its value. This is a big financial loss for homeowners, especially if they invested in their property hoping for a greater ROI.
No room for no negotiations
A huge part of a real estate agent’s job is to ensure your home gets sold for the best price possible, and even for a higher return on investment. The greatest catch of all is that iBuyer’s have their own contractors, who have likely set higher rates, which means their cost is deducted from your offer.
Working with real estate agents gives you access to proper marketing and strategy to ensure your property gets in front of the right people. This includes staging, photography, videography, digital branding and so much more.