Posted by Nicole Azzi Williams on Friday, September 23, 2022 at 3:33 PM By Nicole Azzi Williams / September 23, 2022 Comment
PICTURE THIS: It's 2020, and the COVID-19 Pandemic broke out.
You're desperate to sell your home, but the protocols have prevented you from even getting in contact face-to-face with a Realtor to help you.
Let's face it: Even with the pandemic, the need to buy and sell homes has never stopped. Homeowners and home seekers need either the funds to move or to get a new roof over their head.
However, we really can't deny the fact that we are not only following strict Covid-19 protocols, but are also afraid of our own health as well.
Now comes the "Instant Buyer" (or iBuyer) companies such as OpenDoor, instant offers with Zillow, and much more. They come in with the promise of buying your house quickly, without having your house ready for showings. No need to wait for a buyer to come along or be uncertain at all times if a deal would come through. All this while also picking your own closing date!
The concept is that everything should be accessible via your phone in one tap. With one click, you can arrange shipping, check out on Amazon, and more!
So if that's the case then why not market properties there as well? These kickstart businesses started these and it flew through since they already have experience. The most important of all - they already have the history and the data to predict the market, and so much more.
While all of these look really great on paper, taking out the hassle of finding a realtor to help you sell your home, there's a lot of things that they are not telling you directly.
Here at The Williams Team, we will tell you why going through with these Instant Buyer companies - (especially at times where we have essentially found a cure for Covid-19 and restrictions have been lighter than ever) - is a bad idea, especially for wealth building!
1.)Transparency is not THAT transparent
When you are working with a Realtor, all the rates will be disclosed to you upfront. The fees will be discussed to you during your appointment with them , or even earlier! You will sign lots of documents to protect your interest until closing.
We can't switch it up once it's in the contract - Every change will require the signatures of all parties concerned. Every possible detail is disclosed right up front. Sure, extra closing costs might come in but those things are not predictable (but it will be for sure take around 3% max for average closings).
On the iBuyers' side though, aside from hitting you with prices that are going to be "competitive" (meaning, lesser price than what a realtor could give you), there are other factors that they can throw at you. These come usually near your closing date where you have no other choice but to "accept".
For example, If you decide to have the iBuyers handle the repairs following an inspection, a deduction is made from the final offer. If the repairs are substantial or extensive, the cash offer for the house may be significantly reduced.
However at this point in time, you might have already in the process of moving out from your home and are now deep into buying your new home. Worse - you might have moved in already and have no choice but to accept.
2.) You Lose Selling Power
You own the home, and it is your right to have negotiating power over it.
Realtors will always give you options and decisions on the entire process, which includes the selling price point, selling conditions, whether to accept or deny a buyer's request to repair something -the whole nine yards!
You will feel like you are in control, and Realtors will be siding with your interests even after settling everything in the closing table.
iBuyers on the other hand, can dictate the price that they will give you, together with other costs that might come with it, all because "iBuyers take a significant risk in paying quickly and closing fast when purchasing a home.". With iBuyers, the value that was offered in exchange for your house cannot be adjusted. This is entirely disadvantageous especially if you are not in a rush today, and you have a beautiful home that you can sell for the highest bidder.
The discussion regarding the home's final selling price is necessary to complete a deal when selling a home with a realtor.
By using a Realtor, you may expect them to steer the conversation between the buyer and seller toward a resolution. A realtor will ALWAYS work towards your best interests, whereas an iBuyer will provide you with the price they believe to be the most accurate, so you cannot, for example, request a higher price.
3.) You Lose Human Connection
Forget emotions and the joy of connecting with other people when iBuying. It's a non-emotional transaction. Although you're going to be safe from the pandemic with the iBuyer's no face-to-face interaction, you will miss out on the entire home buying/selling process, which you can use to your advantage in wealth-building.
Some people would rather interact with a live person about their house than browse a web application. You yourself may feel more at ease knowing their house is being taken into account in the most personal way by using Realtors.
Realtors are experts in human communication and some of them are master negotiators which will not only do their best to sell your home but also will be your partner all throughout the process.
Life happens - and sometimes, we need to act fast. But sometimes acting fast doesn't correlate to acting right. At the end of the day, it's your property , and yours alone to profit from or to lose. Always seek advice for big decisions in your life. Being a homeowner is an American dream, and you deserve the best with every move that you will do.
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