The moment a consumer puts their house on the market, they want it sold. The process is complex and arduous. Sprucing up the home with repairs, repainting and even remodeling is time-consuming and expensive. As much as a homeowner wants to move, the uphill climb they face has many deciding to stay where they are.
Instant offer programs, also known as iBuying, are in response to those inconveniences involved in selling a home. The attractiveness of a quick turnaround is helping this fairly new trend to become commonplace in the residential real estate market. Companies such as OpenDoor, Offerpad, and Zillow are spreading the "buy now" mantra, offering homeowners an "express aisle" to unload their home expediently.
However, what may seem like an easy and attractive option could have its share of pitfalls. When it comes to this innovation in the real estate market, the devil may be in the details.
iBuying provides homeowners an affordable means to an end. The process allows them to sidestep the realtors and market their homes at prices generated by an Automated Valuation Model (AVM).
The homeowner is responsible for providing information on bedrooms, square footage, and other amenities. iBuyer responds with an offer pending a thorough inspection of the property. Following a closer look at the house, the owner receives a final offer, which they can accept or reject.
While the advantages are numerous and include the chance to sell as-is and avoid continuous showings, the negatives are something to consider. Not only are sales usually below market value, but sellers also have to cover closing costs and pay service fees above what they would give to an agent.
Real estate transactions are complicated for a reason. Sellers want the most they can get, regardless of how long the process takes, even with a fast lane. A skilled attorney's help can make a significant difference.