What Is an iBuyer and How Is Offercity Different?
You always hear about how real estate is a seller’s market, but what exactly does that mean? Typically, it means there are more buyers than sellers in your market. BUT—sellers still have to go through the process of repairs, staging, listing, showing, and waiting, which makes selling real estate such a hassle.
iBuyers redefine the concept of ‘seller’s market.’ With an iBuyer, forget everything you think you know about buying and selling houses. The game has changed. iBuyers take away the aggravation of buying and selling homes because, on either side, the customer has control of the process.
What’s an iBuyer?
There’s no dictionary definition of iBuyer. Some companies say it means instant buyer, while others say, internet buyer.
Regardless, an iBuyer is a company that uses technology to make a same-day offer on your home. The offer is in cash, as is, with a closing in as little as two weeks. This puts the home selling process entirely in the seller’s hands so that you control when you sell and move. For most sellers, one of the most frustrating things about putting your house on the market is that you give control of your life over to realtors and prospective buyers.
iBuyers also sell the homes they buy. Homebuyers who go through iBuyers have a similar experience to traditional listings. They can view homes online and take in-person or virtual tours.
The advantage of iBuyers is that buyers control the closing timeline. In most transactions, the seller needs several weeks or months to arrange their new housing and move out.
iBuying is particularly attractive to buyers who want to go under contract and close right away. If you’re staring down a deadline for school registration in a particular school zone, you understand how critical timing is.
How Selling to an iBuyer Works
Selling your home to an iBuyer is unlike any real estate experience you’ve ever had. It removes the subjective aspects of selling —you need to paint this, recarpet here, or replace all the appliances, depending on the real estate agent’s hot spots—and replaces it with the quantitative, such as what do the raw numbers indicate?
To get started, you simply log into the iBuyer’s website and enter basic information about the house like address, square footage, features (pool, outdoor living, garage), and age. You can log in any time, with no concerns about nights and weekends.
Then an algorithm assesses the info you provide and calculates a preliminary offer. If this number works for you, then you’ll schedule an in-person evaluation before receiving a final offer.
If any repairs are needed, those costs are accounted for in the final offer. The magic word here is needed. You aren’t expected to update and upgrade a house you’re leaving.
So, within a few days, you have a concrete offer with no contingencies. This frees you up to make an offer on your next house without contingencies, which is a huge plus in a hot market.
Although some sellers are hesitant to commit to an immediate offer—they’re concerned about what’s called opportunity cost—most sellers who contact an iBuyer appreciate the ease and speed of the process.
To this point, once you accept an offer, you don’t have to make any more repairs, and you may not have to make any more mortgage payments. iBuyer sellers see this opportunity as a bigger advantage than waiting out the market.
What Type of Homes Do iBuyers Want to Purchase?
The iBuyer business model is to leverage technology that finds valuations, calculates costs to repair, and then figures out a strong selling price. To keep the repair costs reasonable, iBuyers look for homes that are in pretty good shape with minor cosmetic repairs—maybe a new tub surrounds in the bathrooms, new carpet, or updated countertops.
Homes that need structural repairs are not good candidates for an iBuyer. Assessing damage, getting estimates, and then making repairs do not mesh with the iBuyer model of moving inventory quickly through their systems.
The Offercity Difference
Real estate hasn’t always been as complicated as it is now, and iBuyers do streamline the process. Offercity’s model is similar to an iBuyers. We use algorithms to determine a preliminary fair market value for your home, but that’s where the similarity ends.
Offercity takes multiple offers
The iBuyer model relies on speed—they present an offer, and you accept it or not. We can close on your property just as quickly, but with one big difference.
Offercity works with investors interested in the kind of properties we buy—solid houses in good structural repair. When you approve our initial offer, we will send your home’s photos and information to our curated investors and open up the bidding process.
So instead of accepting our first offer, we open the sale up to qualified investors, and we present you with the highest bid.
Offercity takes the stress out of selling
One thing that sellers appreciate about our system is that the sale remains a business deal instead of the emotional rollercoaster ride you take when you list with a seller’s agent. When you choose Offercity as your iBuyer, you’ll get an offer and a closing within days—sometimes as few as 10 days from offer to close, with no contingencies or surprises.
Offercity also offers up to $5,000 advance to offset your moving expenses, deposits, or whatever you choose.