Here’s What People Are Saying About iBuyers
By Space Coast Daily // December 3, 2021
As post-pandemic recovery continued to rise around the country, more and more industry professionals were surprised by the burgeoning growth of the housing market. Despite the disruption experienced by COVID-19, both buyers and sellers discovered new ways of adapting to a changing, digital-centric world.
Investors, in particular, have quickly adapted to the world’s ‘new normal,’ innovating new ways to purchase real estate before, during, and after the effects of the Coronavirus. Known collectively as ‘iBuyers,’ these revolutionary home purchasers are disrupting the traditional functions of the real estate business.
What is an iBuyer?
Despite their rapid rise to popularity, iBuyers have not always been a part of the real estate dynamic.
The ‘i’ in ‘iBuyer’ stands for ‘instant,’ which is an excellent way of understanding the perspectives of these rapid-fire home purchasers. These buyers want fast, quick, and easily accessible properties that can be vetted through digital tools and platforms. Unlike many other types of home purchasers, iBuyers can move extremely fast — and for good reason. The majority make cash offers for their favorite homes, often within 24 hours of a property’s online listing.
Due to their unique and often shortened timeline, iBuyers may purchase your home within a period of two weeks or less. According to current real estate research, nearly three quarters of all homes sold For Sale by Owner (FSBO) to iBuyers resulted in 14-day turnarounds. This is partially due to the iBuyer’s ability to view properties online, and partially to their ability to raise capital.
iBuyers are taking the real estate world by storm, with millions of eager homeowners taking to platforms such as Zillow and OpenDoor to sell their properties.
iBuyers: The Global Scoop
iBuyers are no longer a marginalized real estate trend. In fact, 7 out of every 10 home sellers would consider iBuyers for their next sale. This points towards a growing desire to sell homes quickly, a trend that does not seem to be slowing down in any way.
Virtually every age group is interested in using iBuyers as a home selling option. Baby boomers were the last to lead the charge, accounting for at least 47% of the vote. Millennials voters were by far the highest demographic, with 80% of survey respondents considering the option.
Although all cities in the United States are experiencing the effects of iBuyers, some growing metropolitan areas are seeing a higher spike in activity. The capital city of Raleigh, North Carolina is one of the largest targets, with 7.9% of all homes landing into the hands of iBuyers. Another state capital, Phoenix, Arizona, saw 5.7% of their 2019 homes snapped up by hungry iBuyers and related demographics.
5 Things You Should Know About iBuyers
As 2021 pushes forward, the presence of iBuyers will only continue to grow in the real estate market. This heavy presence has resulted in much speculation by researchers and professionals alike. There are five important things that all potential sellers should be aware of regarding the iBuyer trend:
1. iBuyers Are Extremely Popular
As of 2021, more than 70% of all home sellers would consider giving their home to an iBuyer. Nearly half of all Baby Boomers and more than 8 in 10 Millennials would be interested in at least fielding questions from less traditional buyers. These numbers are only expected to rise as acceptance for alternative buying increases.
2. iBuyers Often Make Cash Offers
Unlike many of their traditional peers, these purchasers are ready to make cash offers for homes within a matter of days. With less lender activity and no real estate middleman, home sellers can make thousands of extra dollars on the sale of their home.
3. iBuyers Purchase Homes As-Is
Unlike traditional buyers, who often prefer to purchase like-new homes, iBuyers are willing to make a sale with no strings attached, but remember to check their reviews and that the are not a fly by night company because many of these companies are just individuals. This means no renovations, remodels, or ‘refreshenings’ of the home.
4. iBuyers Make It Easy To Instantly Connect
The use of technology allows iBuyers to see your home, its location, and its pricing all at a single glance. Because of this, they can contact you immediately if and when they are interested in your property. iBuyers significantly reduce wait time for sellers, which is one of the reasons they are so popular in the slow-moving American real estate space.
5. iBuyers Are Willing To Negotiate
Similar to Realtor commissions, iBuyers often have a commission to charge (7.5% in many cases). However, this is largely negotiable. The primary objective of your iBuyer will be to secure real estate as quickly and safely as possible. If you are willing to spend time discussing your needs with the iBuyer, you may save money.
An Alternative to iBuying
Off-market home transactions including investment marketplaces and iBuyers are clearly becoming the home purchasing trends of the future. If you are planning on making the jump to less traditional methods, be aware that people have a lot to say about the changes to the real estate market and home buying procedures.
Both professional real estate practitioners and home buyers are beginning to notice a steep rise in cash buyers, investors and iBuyers with cash on hand and the promise of quick transactions. Sundae.com, a leading marketplace connecting motivated sellers with cash buyers and investors is no exception. It provides a seller-centric alternative to the iBuyer model.
By sourcing qualified sellers and buyers using a sophisticated pairing system, the company has begun to notice a shift in the way traditional real estate is executed, giving more options to sellers. With a no-conflict of interest model, Sundae.com reviews currently come with a 93% recommendation rate, and are often referred to friends and families by sellers.
Marketplace formats generate additional competition and help sellers drive up the price of their homes. A spokesperson at Sundae.com noted, “no longer are people relying just on Realtors, listing sites, or wholesalers to sell their properties.
Instead, they are getting offers from multiple parties without anyone ever setting foot in their homes. Better yet, they are selling faster, safer, and with more competitive offers.”
Off-market buyers include a number of alternatives to conventional home selling, and iBuyers are among these options. While iBuyers often hone in on houses that need less work and can be purchased sight unseen, a platform like Sundae.com places properties sold as-is in front of a bevy of investors and cash buyers.
With iBuyers and other marketplace alternatives entering the market, real estate has undergone a drastic transformation.