iBuyers vs Real Estate Investors: Who should you sell your home to?

Who would’ve thought that selling your home could be as easy as a few taps on your mobile phone? A veteran real estate agent might have laughed at the idea before. But now, digital real estate platforms give realtors a run for their money and report that homeowners request an offer every 60 seconds.

What spurred this online real estate market? 

Almost every element of our lives is becoming digital  – our work, transactions, education, and even socialization. It was only a matter of time before we bought and sold real estate investments online. 

Ibuyer companies also promise to eliminate the inconvenient parts of the conventional selling process like no control over closing dates, showings, and listings. 

What about real estate investors? Can they participate in our digital housing market? Yes! They offer an effortless way of selling your house by buying it as-is. 

So ibuyer vs. real estate investor – which one should you go for?

What Is An Ibuyer?

Ibuyer is short for instant buyer. Ibuyer companies provide an avenue for home sellers to take charge of their real estate transactions.

Their mission is to do away with the dependence of traditional buyers on realtors and the agonizing wait for potential buyers. It might surprise you that ibuyers are not home flippers. Ibuyers don’t purchase a home, repair and resell it. Ibuyers work mainly earn a profit by charging a service fee for every successful home sale.

Pros of Selling To An Ibuyer

Selling to an ibuyer could mean receiving cash offers within days and reaching a broader market through their app and website. 

Ibuyers *claim you can obtain an instant offer on your home minutes after posting your house for sale. Requesting offers is free of charge. 

A simple video walkthrough is enough to get you an offer compared to cleaning and staging your home. 

You decide on your close date and are under no obligation to sell if you desire not to. 

Cons Of Selling To An Ibuyer

Perhaps an ibuyer company is not yet servicing your city. To successfully receive an offer, you have to meet their requirements on the materials used in your home, its condition, type of occupancy and ownership, location, year built, lot size, appraisal, and home types. They usually only accept townhomes, single-family homes, and condos & duplexes on some occasions rather than multi-family homes.

And don’t get your hopes up too much for higher sale prices. You will likely receive an offer price below market value compared to working with a traditional real estate agent. 

What Is A Real Estate Investor?

Real estate investors or cash buyers look for investment opportunities in their local market. They are in the business of buying and selling homes and rental properties at a profit. You can consider them as house flippers as they repair and renovate their purchased properties. 

Their competitive edge against realtors and ibuyers is that they buy houses as-is. Sellers need not worry about home inspections, making repairs, closing costs, and meeting specific standards. 

Pros Of Selling To An Investor

Unlike in a traditional sale, the closing becomes the real estate investor’s responsibility, such as covering paperwork and fees. A cash buyer can also close on your home in a week. 

Did you know that a realtor’s commission is usually over $10,000? You can pocket that amount when you deal with an investor. 

Cash home buyers are not easily intimidated by unusual situations like a bad neighborhood or a pandemic, whereas a seller might not be as fortunate on their own. 

Lastly, when you’re fighting a foreclosure, an investor will help you deal with your lender through a short sale. 

Cons Of Selling To An Investor

You might receive a lower sale price when you sell to an investor since they will be shouldering closing and repair costs. A realtor will present multiple quotes for your home, while a cash buyer might appeal to you by giving you a good first offer. 

Who Should You Sell Your Home To?

You have taken working with a real estate agent out of the equation. There’s no guarantee that a lender will approve a buyer’s loan, and you don’t want the hassle of starting over and relisting. You may also have a family emergency and need to move quickly. You do not want to take on the closing process. 

Ibuyers vs. investors. Which one to sell your house to?

Even if your home is in good shape, ibuyer companies are still likely not the best option. Besides, they offer an often oversimplified online home-selling experience that can create problems. If your residence is in disrepair and you have no interest or funds for repairing or remodeling, cash home buyers will almost always be the better route to take.

Get An Offer On Your Home

Assemble Houston is ready to make a cash offer on your property. We have over 35 years of experience as real estate investors and are a respected figure in the Houston market. Rest assured that you will receive a fair and fast offer.   

Our process involves taking the time to know every detail of your home and all the upgrades you have invested in it. We will then compare the information with the current market data to give you the best possible offer. You can expect a written cash offer after this short review and then you can move on to your next chapter as quickly as 14 days. 

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