Can you really trust all-cash offers from institutional investors?
Have you heard of iBuyers? They are institutional investors that come into hot markets like Columbia and buy tons of property. Then, they either rent them out or flip them. Often, these buyers will make cash offers on your home without even looking at it. Is it too good to be true?
A cash offer on your home with no questions asked seems fantastic, and it certainly has its advantages. The biggest pro is that it’s easy; you hardly even have to think about your home sale. However, keep in mind that these buyers are investors, and they’re looking to make a profit. In other words, they’ll probably offer you less than what you could get on the open market.
“These all-cash offers often come with hidden fees.”
If you work with a good real estate team like mine, we can market your home and get it in front of as many buyers as possible. In my experience, you’re almost guaranteed to make more money by putting your home on the open market than selling to an iBuyer.
Recently, I saw a home for sale by an iBuyer for $540,000. However, just a few months earlier, they bought it for $475,000. In this instance, the original seller missed out on $65,000. If you’re wondering why anyone would sell to an iBuyer, remember that price isn’t the most important thing to everyone. The convenience of an all-cash offer is hard to beat, and some people are willing to get less money for it.
If you decide to sell to an iBuyer, I caution you to look out for their hidden fees. While they claim to make their offers with no strings attached, they usually end up doing a basic inspection. If they find issues with your home, those extra fees could start to add up. Suddenly, what seemed like a great deal is far below market value.
It’s easy to go online, type in your address, and get a cash offer. If getting top dollar isn’t a priority for you, this could be a viable option. However, if you want to get the most money possible for your home, I have to recommend working with a great real estate team. A good agent will make the experience as smooth and hassle-free as possible, so you don’t even have to sacrifice convenience to get a great deal.
If you have questions about iBuyers or want any real estate advice, please call or email me. I am always willing to help.