Are iBuyers Worth the Cost?
“iBuyers” are the latest technology to hit the real estate market. These new real-estate companies buy homes directly from customers. Some examples include Zillow, OpenDoor and Offer Pad. Their approach offers a seemingly modern and quick solution to the process of selling a home. But that convenience comes at a cost. The example below is for illustrative purposes only.
In fact, a MarketWatch investigation of multiple transactions involving iBuyers shows that their offers would net their customers, on average, 11% less than owners who choose to sell their homes on the open market, when fees and other costs are considered – translating to tens of thousands of dollars lost. The findings also revealed considerably more uncertainty around the transactions than the iBuyer model purports to offer consumers who are looking for ease.