Before you buy from an iBuyer, consider these four disadvantages.
We see companies like OpenDoor and Zillow buy homes on the market all the time, but there are disadvantages to buying a home that’s been previously bought wholesale and listed by an iBuyer.
The first is the fact that they do as little work as possible to the home to prepare it for the market. They may add new (and often unflattering) carpet and touch up the paint job, but they don’t do all the special things the average seller would do to give their home that extra “wow!” factor.
Second, you’re not dealing with a seller—you’re dealing with an asset management company. This becomes a problem if you want to learn about the home’s irrigation system, for instance, because there’s no one to ask.
Third, these companies don’t treat people like people. You’re essentially just a number to them. They only look at their bottom line.
Lastly, getting responses from them is much more of a hassle. After you and your agent submit an offer, it usually takes a few days to get a response, and you’ll probably have to follow up a few times. You might come to terms with them, but you’ll find out that they don’t negotiate much. Once you’re under contract and you make inspection repair requests, they won’t be willing to do very much, if anything at all.
In general, getting your questions answered is very challenging for you and your agent. We’ve dealt with this situation several times in the last couple of months with a few of our buyers, and it’s frustrating for them because buying a home should be an enjoyable experience where everyone comes away feeling like they got a fair deal.
So before you decide to buy from an iBuyer, keep these points in mind and set proper expectations. Also, remember to ask your agent a lot of questions and let them guide you through the process.
If you have any questions about this or any other real estate topic or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d be happy to help you.