Common iBuyer Surprises: Instant Offers Reality Check
Mar 11, 2019
In the “simple” world of Instant Offers, there are several — let’s say — suprises. What are some of these common iBuyer Surprises?
Let’s start with the biggest surprise – a lot of sellers can NOT get an offer.
That’s right, your house may not be eligible. Pretty surprising. If you took your car to a dealer you would expect to get an offer. You may not like the offer, but you sure expect to get one. On the other hand, when you input your address on so many of the Instant Offer websites, you are very likely to be turned down. Don’t feel bad. In this instance, it really is THEM – not you. The company may not be servicing your exact area yet, they may believe your house is too old, or maybe you simply filled in a field with information that their algorithm didn’t like. Not so simple or Instant. That is why you need to get and compare MULTIPLE offers. There is definitely someone out there ready to give an offer on all properties.
Another major surprise – Service Fees.
That line item on your Instant Offer throws several sellers for a loop. Expect a minimum of a 5 percent service fee all the way up to a 9 percent fee. You have to ask, “Is a service fee just another word for commission?” Although you may not be paying a real estate agent that fee, you are definitely still paying a fee, and potentially more than you would pay an agent. That is definitely worth knowing.
And then we have the dreaded REPAIRS.
With Instant Offers you might have thought you were off the hook. Not so. You may not have to DO them – but you still have to pay for them. Expect a repair line item on your final offer after they have done a property walk through.
Those are just the basics in Instant Offer suprises in the world of iBuyers. As always, look at the fine print, call in the help/guidance of a professional and go into the process knowing what your bottom line is for your net proceeds.