First off, you may not have heard of the term iBuyers before, because they are not really operating in the Indianapolis, or Hendricks County markets yet. iBuyers are defined as RedfinNow, Zillow Offers, Offerpad, and Opendoor. These large companies will give you cash offers to purchase your home, close quick, and save you the headache of listing you house. For the sellers it can be a good thing if they found another house they really like and want to sell their home quick. But these offers generally come with a lower sale price for that convenience. According to MarketWatch sellers earned 11% less selling to the iBuyers, than selling on the open market. If you sell traditionally, your average real estate commission cost might be 6%. Subtracting that off, it might be more like a 5% discount.
$200,000 House (disregarding other closing costs)
iBuyer = $178,000 Purchase Price (200k-11% discount)
Traditional Sale = $188,000 Net Purchase Price (200k-6%comm)
You can see in this rough example, that a traditional sale would net the seller about $10,000 more than the iBuyers. This is on average, sometimes its more, sometimes its less. If you're thinking about selling and the iBuyers operate in your market, it's certainly worth getting a price just to see what they offer. I have heard of sellers getting good offers very close to what they would net selling traditionally. But in many cases these offers are much lower as well, and it comes down to how their computer algorithm values your property.
When requesting a cash offer from these companies, the price they give you is not your final price. You will have to read into the details of the offer. The purchase price on the surface might look good, but there are other costs. Right off the top they charge a 7-12% service fee for the convenience. Then if you agree to that price, they send someone to inspect the home for repairs. Their definition of repairs needed include whatever updates they want as well. So if they think older flooring needs replaced they will subtract that, where in a traditional sale the buyers would never be asking for money for flooring after the purchase contract, unless something defective was discovered at inspection.
There can be good reason to consider the iBuyers for the convenience of a quick cash sale, no repair work (repairs are deducted off sale price), a faster sale means savings on loan payments, not dealing with getting your house totally ready for sale, and with buyers coming through for showings. At the end of the day, it's best to have all your selling options on the table, and choose what's best for you. Be sure to get the opinion of some real estate agents as well. Of course they could be bias to traditional listing since that is how they get paid, but good real estate agents will always work in your best interests. For a free home price evaluation, send me a quick message!