Should a seller use an iBuyer to purchase a FishHawk Ranch home?

Posted November 13, 2019

In Real Estate Tips and Advice — Sellers

Should a seller use an iBuyer to purchase a FishHawk Ranch home?

One of my clients is looking to seller her home in FishHawk Ranch. During our phone conversation, she asked if she should use an iBuyer to see if they would purchase her home and if so, for how much money. Great question, let’s take a look at the answer!

What is an iBuyer?

An iBuyer is a real estate investor that uses an automated valuation model (known as an AVM) and other technology to make cash offers on homes quickly. The iBuyer relies on data from public records to create comparables of home sales in the area. An iBuyer will often purchase homes sight unseen using hired contractors to inspect the home prior to closing.

The larger iBuyer investors that buy in the FishHawk area are Zillow, Opendoor, and Offerpad.

The iBuyer Process

The process is fairly simple. The property address you want to sell is submitted to the iBuyer and usually, within 48 hours an offer with terms is emailed.

iBuyer Limitations

iBuyers are limited in both where they want to buy homes as well as the type of homes and price points. Each iBuyer is a little different so it is difficult to list the limitations. In general, the iBuyers like to purchase homes under $350,000. FishHawk Ranch is an area that iBuyers are interested in.

The iBuyer Offer

In my opinion, the offer price is the biggest hurdle the iBuyers have to overcome. In my experience, the offers are lower than if the home was marketed and sold through traditional real estate channels. Some iBuyers also charge a service or convenience fee. The net offers seem to be in the neighborhood of 80% of the actual market value of the property.

It was just reported that Zillow earned over one billion dollars in its first quarter with its iBuyer program. In my opinion that one billion dollars are probably better off in the seller’s pocket.

iBuyer Positives

A fast cash offer
Can close quick
No preparing your home for multiple showings

iBuyer Negatives

Low net offers
They do not want fixer-uppers

The Bottom Line

If you are in a rush and really need to sell your home fast and iBuyer may be an avenue to pursue. In my opinion, whether you are selling to an iBuyer or a regular buyer, a professional Realtor is needed for the transaction. Between contracts, negotiations, disclosures, legal items, and title items, have an experienced real estate agent to represent you is critical.

It does not hurt to get offers from the iBuyers. I do send each of my listings to them for an offer. None of my sellers at this point have thought the offers are strong enough to accept.

For sellers that have a little time and want a full-price offer, I do not think using an iBuyer is the way to go. It is much better to list your home at market price and sell it the traditional real estate method where your home is marketed to every potential buyer.

Should a seller use an iBuyer to purchase a FishHawk Ranch home?

I hope this article has given you a better understanding of what an iBuyer is and whether or not you should use sell your FishHawk Ranch home to them. If you are planning to sell a home or buy a home in the FishHawk area in the near future, give me a call or text me at (813) 421-3007 or send me an email at TampaRealEstateAdvisor@gmail.com and I am at your service.

As your local FishHawk Ranch real estate expert with a focus on customer service, I promise you’ll find great success when working with me. You can read some of the rave reviews received from past clients right here: FishHawk Ranch Real Estate Agent Reviews.

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About the Author

The above real estate article “Should a seller use an iBuyer to purchase a FishHawk Ranch home?” was written by Jeff Gould.

Jeff is a top-selling, nationally recognized REALTOR® and local FishHawk Ranch real estate expert. You will find him selling homes in Tampa Bay, Florida, and surrounding areas. Some of those areas include FishHawk, Lithia, Riverview, Valrico, Apollo Beach, Brandon, and Tampa.

If you are looking to sell or buy a home anywhere in the Tampa Bay area, Jeff is your local and trusted professional.