You’ve seen it on tv, heard it on the radio and probably even received some postcards about it but should you sell your house to an instant offer campany? Let’s look at the Pros and Cons of selling a home to an instant offer iBuyer.
The ads call it a Guaranteed Offer, Instant Offer, Direct Offer or something similar. It may say “Get your Direct Offer in 48 Hours” or some quick timeframe. These types of iBuyers are offering to buy homes without seeing them in person. Obviously, they are trying to buy homes quickly at under market value then flip it immediately for more money.
Zillow was one of the top players in this business model until they stopped the program in late 2021 saying they had lost over a billion dollars. Opendoor, Offerpad and Redfin are running similar programs. They all work the same, they make you a quick offer to sell your home. The promise is that they make it quick and easy. You don’t have to worry about showings or other hassles.
Pros of Selling to an Instant Offer:
- No Showings
- Can close quickly
- No back and forth negotiations
Cons of Selling to an Instant Offer:
- You will get less than markt value
- After inspection, the final offer is much lower than you thought.
- Dealing with a large company that moves on their own time schedule.
The biggest selling proposition for selling to an iBuyer is that it will be fast and easy. This might work good for you if you need to move fast but in a hot sellers market, you’ll likely sell you house in one weekend on the open market. This means you’ll get more money with still very low effort when working with a Real Estate Agent.
If you want the highest amount of money for your home you don’t want to sell to an instant buyer. Going onto the open market will bring real families into your home. They’ll fall in love with the home and make a higher offer than an iBuyer. You’re actually giving up a lot of money if you take that Guaranteed Offer.
Eveyone’s situation is different. Give me a call and we can go over your situation and I can help you make this important decision. I want you to get the most money for your home so call me to discuss what is best.
*Andy Hawbaker is a Licensed Realtor in Northern Colorado specializing in sell homes for more money.