Today, we talk about how iBuyers are becoming more and more a part of the process and how to better understand how they work and how you can use them to your benefit. 

iBuyer Craze
  • Zillow Instant Offers
  • Open Door
  • OfferPad
  • Redfin Now
  • Homelight.com/Simple
  • CloudAgentSuite.com/ibuyerconnect
  • We Buy Ugly Houses
  • Knock
  • Keller Williams – later in 2019
  • Realogy – select Coldwell Banker Agents
  • New Wholesalers
  • Deep pockets – well-funded – lots of capital

Benefits to Seller
  • Fast, No Hassle Transactions (CONVENIENCE)
  • Stress-Free
  • Cash Deal – No worry about escrow falling out/buyers not qualifying/changing their mind
  • Choose your closing date
  • May get moving credit
  • May be able to stay in the home for a while
  • Not always a low-ball offer

SELLER SCENARIOS – MAY BE GOOD FIT:

  • Contingency on new home sale
  • Out of state – Seller inherited home
  • Seller ill – not convenient to show home
  • Divorce sales
  • Any situation where the seller needs a quick sale and is okay with selling under market value
Downside for Seller
  • Under market offers – leaving money on the table
  • 7-12% fee charged by iBuyer
  • Seller still has normal closing costs
How Does It Work?
  • iBuyer Company uses automated home valuation model & other technology to generate cash offer price
  • Don’t make offers on all properties – iBuyers want livable properties and typically don’t buy distressed homes
  • High volume lets iBuyers make less money on each home
  • Zillow – Inspection – then two offers one with required repairs

Inman Guide

Opendoor Business model
  • Opendoor buys houses and owns them, acting as a middleman (as opposed to a matchmaker) in residential real estate transactions
  • Opendoor won’t buy every house — qualifying properties include single-family homes built after 1960 with a value between $125,000 and $500,000
  • Opendoor makes money in two ways: from the service fees it charges, and from any difference between what it buys houses for and what it sells them for
  • Opendoor works with real estate agents, offering to pay full buyer commissions, as well as seller commissions if a sale comes from an agent
Trends
  • Nov 2018 – Phoenix 5% of the market was iBuyers (OpenDoor 3%)

 

Be the Trusted Advisor Consultant!
  • Understand the process for each of the primary iBuyer Companies
  • Most will pay a fee to you of 1-2% if you initiate the offer request on behalf of your client
  • Add iBuyer Option as a possibility in your Listing Presentation
  • The KEY is advising your seller and presenting all the possibilities for a sale base don their GOALS …. Not YOURS!
  • The other KEY – using NET SHEETS For the scenarios!
  • Understand the process for each of the primary iBuyer Companies
  • Most will pay a fee to you of 1-2% if you initiate the offer request on behalf of your client
  • Add iBuyer Option as a possibility in your Listing Presentation
  • The KEY is advising your seller and presenting all the possibilities for a sale base don their GOALS …. Not YOURS!
  • The other KEY – using NET SHEETS For the scenarios!
iBuyer Agent Pages


Let’s Connect!

At Home Connect America: THE Home for Teams, we see YOU as a small business owner.  Home Connect America was created to help professionals like you build a successful real estate team.  Our purpose is to help you seamlessly connect your business, your life, and your community so that you realize your ultimate goals and dreams.  Our ultimate goal is to provide you with freedom.  Everyone has a different objective and we believe that you should have the freedom to achieve what you want.  We’ll be there to help you reach whatever that looks like for you.  We make it happen with specialized coaching, training, and business systems designed to show you how to operate a successful business focused on providing excellent service and results.

Contact Jan O’Brien for a confidential interview to learn more about our proprietary training and coaching programs, team systems and software. Call or text Jan at 702-858-9191.


Real Estate and Reality meet as co-hosts, Jan O’Brien and Matt Emerson bring you Tips, Tools, & Topics to supercharge your business. They’ll share their insights along with interviews with industry thought leaders. The ethos of WBNL Coaching is helping you to align and connect so that you can prosper. The Wandering Zen segment will offer you some inspiration so that you can disconnect and recharge.

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