Monday, February 10, 2020 / by John Salkowski
You’ve probably heard the term ‘iBuyer’ before, but do you know what an iBuyer is or how they work? Find out today.
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Companies like Opendoor, Offerpad, and Zillow Offers are playing a numbers game. Let me explain.
They’re sending out hundreds of thousands of emails, texts, and automated phone calls to the type of clients whose properties they want to purchase. Keep in mind the fact that they want to purchase those properties quickly and for just cents on the dollar. That’s what an iBuyer is: an “instant buyer.”
The reason I bring this up is that I recently had a client who inherited a property I was interested in selling. It was in its original condition—50 years old with no updates. The client went online to Zillow Offers, who submitted a cash offer for the property at forty or fifty cents on the dollar. The property was worth about $180,000, but its market value was $200,000. Zillow’s offer was around $100,000.
I met the client and told them that the JRS Realty Group could do the same thing that Zillow Offers could do; however, we could also make them more money. They weren’t interested in showing the property, but I told them that if they showed the property to some investors, they would make much more money. They ended up going with us, and we got them exactly what they wanted—and for $60,000 more than Zillow offered them.
See, iBuyer companies like Zillow Offers use AVMs (automated valuation models) to compare your home to other sold homes without ever stepping foot inside it. That just doesn’t work.
So, if you’re interested in selling your property fast and for top dollar without making any repairs, hold off on contacting Zillow Offers, Offerpad, Opendoor, and the rest—reach out to our team. We’d be more than happy to help you with no obligation or cost to you.