Instant offer companies have become increasingly common lately, yet not everyone understands what these businesses are or what they do.
Essentially, an instant offer company, otherwise known as an iBuyer, is a company that buys properties outright at a discounted price. They claim that this arrangement is more convenient than listing on the open market, but sellers should be wary of this promise.
The truth is that these instant offer companies see your home as an investment opportunity. When you sell it to them, you’ll not only earn much less than you could by listing on the open market (usually 10% or 15% below its fair value), but you’ll also have to pay sizeable fees for the experience. On top of that, the instant offer company you sold your home to will then turn around and re-sell it at a higher price.
And these instant offer companies aren’t just fly-by-night businesses advertising on the side of the road. Huge businesses like Zillow, Opendoor, an Offerpad are some of the most prevalent forces in the instant offer industry.
The bottom line is that selling to an instant offer company is rarely ever worth it. The supposed “inconveniences” associated with listing on the open market are extremely minor relative to the benefits of a traditional selling experience.
If you have any other questions or would like more information about how my team and I can help you sell quickly, successfully, and with very little hassle, feel free to give us a call or send us an email. We look forward to hearing from you soon.