Real estate technology has come a long way from the typical one on one interactions between buyer or investor and a seller or realtor to online transactions where any buyer could get a house without as much as meeting with a homeowner. One of the more popular additions to today’s technology is the rapidly growing iBuyer.
Who are they?
iBuyer is a real estate company (s) that allows real estate buyers to use home value assessment tools (mathematical algorithms) online to determine the value of a house before making a cash offer. The software was started back in 2014 by Opendoor as a means of improving the then real estate market. As time went by, Opendoor was joined by other companies, and it now operates in 20 cities across the nation. These companies are backed by several investors/ venture capital firms such as RedfinNow, Offerpad, Opendoor, etc. iBuyer is very convenient for homeowners that do not want to deal with all the work needed to list their homes and having to deal with potential buyers.
How they operate
iBuyer relies on a mountain of data points from comparable home sales that enables buyers to buy unseen. The traditional seller had to find a site and list their home on their website, stage it, and then start marketing it to potential buyers. But with iBuyer, all one has to do is input a few data points about their property such as age, zip code, condition of the house, and using an algorithm the software predicts the value of the home.
Once that is done, the seller is given an offer (cash offer) for the house, which they may choose to accept or decline. In case they accept, it will take only a few days for the money to be released into their accounts (this may change depending on the closing date a seller chooses).
The homeowner will then get information on when to move out of the house so that they don’t run into any of the potential buyers during home showings. The seller can then decide if they want to purchase a different property or spend, they earned cash.
iBuyers, on the other hand, after buying the house, will act on it depending on whether it will need any renovations or upgrades before listing it on the market and sell it at a profit.
How to get an account
If I want to sell my house, as a homeowner, I can fill out an online form and then download the app. I will then get an offer with a couple of days. After filling the form, I will upload your photo.
What to expect
• Shopping around is easier as there is no need for showings or opening houses, and buyers can browse as many homes as they can a lot easier and quicker.
• It allows a significant turnover of inventory.
• One can get cash faster than the traditional way.
• It is very flexible since the homeowner can decide the date that will be convenient for them to move out.
• No commission is used for an agent due to the house not being listed.
• No inspection is done
• The price is nonnegotiable and tends to be lower than the traditional listing process.
A. North Carolina
The State of North Carolina is one of the several states in the country to use iBuyer for its real estate. Homes in North Carolina have about 4.3% of their sales done through iBuyer. In these companies, the top-ranked company in Raleigh, which makes for 6.8% of the home sales.
The sales of Homes in North Carolina is a projected increase in home sales through the iBuyer, especially in the southern markets iBuyer is expected to increase their sales, especially for homeowners who would like to skip all the hassle that comes with listing, staging and selling a house the old way.
B. Wilmington, NC
In Wilmington, iBuyer technology is yet to gain that much traction. As such, Houses for sale in Wilmington nc are predominantly done through the use of an agent. Compared to traditional buying and selling of homes, iBuyer not active in a lot of the areas and has only succeeded in selling houses with a median price of $250,000.
Houses for sale in Wilmington nc can use the iBuyer platform and be guaranteed to get paid in a couple of days after an evaluation of the house is done. But this is only done if the house meets the company’s criteria. The other alternative is selling your house through a local home buyer. A potential buyer will have to browse through a list of houses before they get to yours. This process is longer as it takes thirty to ninety days and will need the use of a real estate agent. The agent is also going to get a commission out of the sale.
C. Fayetteville, NC
The situation in Fayetteville involves virtual cash home buyers which operates under the same concept as iBuyer. The cash home buyers offer cash to the homeowners for houses for sale in Fayetteville nc. Also, they do repairs and renovations to houses after they acquire them. The company is also expanding their methods of buying houses for sale in Fayetteville nc, to feature something similar to iBuyers.
D. Raleigh, NC
Unlike Fayetteville, iBuyer’s presence in Raleigh significant despite them facing stiff competition from local real estate agents and others like Mike Buys Houses. When looking for houses in Raleigh nc, buyers have more options. They can choose to go the traditional route by using real estate agents and have to deal with long waiting periods before finalizing their sale, or they can choose the other two; Mike Buys Houses or iBuyer.
Both iBuyer and Mike Buys Houses offer cash after evaluating your house in a much shorter period and do not need any commission fees. Both iBuyer, Mike Buys Houses also do not ask you to fix or renovate anything as the task falls on them.