The Truth About iBuyer Apps: It’s About Shareholders

The Truth About iBuyer Apps: It’s About Shareholders

Jun 22, 2020

The thing about Realtors like me is that we care about our clients. We care about our communities. We care about local small businesses. Our job is to look out for you and make sure you get the right price on your home or to help you find the perfect home for you and your family. iBuyer apps? They’re all about shareholders, investors, profits. And it shows.

What is iBuyer Real Estate?

iBuyers are companies backed by investors that use online technologies, like websites and apps, to buy and sell homes. The apps do a quick valuation of the home and make an offer. A deal can be closed within days. Sounds great, right? Nope. iBuyer apps are all about shareholders and investors and not at all about you.

Felecia’s Raving Fans

If you’re looking to sell your home or buy a new one, hire somebody who really knows the area and what they’re doing. Call me today, and let’s talk! And maybe get a coffee. (602) 689-1805

It’s All About Shareholders

How do we know that iBuyers are all about shareholders? Look what happened during the Coronavirus pandemic. They all hit the pause button, didn’t want to do business until things cleared up. We know that from the letters they sent out to…customers? No! Shareholders!

Now, we know that Phoenix’s housing market has been on fire and remained healthy this whole time. Homes are getting multiple offers, inventory is tight. And the iBuyers disappeared. They don’t care about sellers and buyers. They care about shareholders. Real Estate pros like me have been here for you. And we’ll continue to be.

5 Things You’ll Regret with an iBuyer App

Working with a full-time, professional Realtor means you have somebody working for you — full time! That means we’re here for you through good times and not-so-good times. We won’t abandon you. For people who decide to go the iBuyer route, beware of the following. You may come to regret that decision.

  • Your Community’s At Stake. Your local Realtor is part of your community, and iBuyer apps damage their business. Therefore, they damage your community.
  • It’ll Cost You. Selling through an iBuyer can cost you thousands. A “MarketWatch investigation of multiple transactions involving iBuyers shows that their offers would net their customers, on average, 11%.” Remember, these apps tack on all kinds of fees you won’t see from a Realtor.
  • Forced repairs. iBuyers require the seller to use their contracting service to do all repairs. Not only that, but the contractor has to do whatever repairs the iBuyer wants. This is NOT NEGOTIABLE like it is with regular Realtors.
  • Low Offers. The apps are designed to make you a low offer on buying your house before being resold. That’s how they make their margins. It’s a double-transaction sale. It needs markup.
  • Who Benefits? When you do an iBuyer transaction, it is designed to make money for the iBuyer’s investors, not you. The seller gets less, the buyer may pay more…it’s all designed to make money for the app. A Realtor brings professional advice and experience for your benefit and gets paid for doing so.

Talk a Real Estate Pro

As you can see, there are some real dangers to selling a home through an iBuyer app. These apps are investor-driven companies that only look out for one client — their shareholders. Don’t let regret be part of your real estate transaction. Work with a full-time Realtor who will work hard for you.

Have questions? Thinking of selling your home? Ready to move to Phoenix, or move up within the area? Call me. Let’s talk and do a virtual coffee! (602) 689-1805.

Read More: Your Bulldog Realtor: There’s Not an App For That

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