You’ve heard of iBuying but don’t know exactly how it applies to the home-selling scenarios you’re familiar with.
As iBuying grows, it provides a more convenient and flexible way to sell homes. It’s gaining trust among homeowners, while also bringing new light to the old concept of instant offers.
Known as instant offer companies, iBuyers are tech-based home investors that buy and sell houses, primarily to streamline the process, both for themselves and their customers.
How Does iBuying Work?
Sellers upload home information to an iBuyer’s app or website and receive an instant cash offer within hours. This can shrink the selling process from months to mere days.
After applying, a seller receives an offer within 24 to 48 hours, and from there, an inspection is scheduled. Based on the condition of the home, the offer is adjusted. When the seller and iBuyer agree on the offer, the seller chooses a closing date.
A seller who needs convenience or speed, possibly above selling their home for the optimized value, is likely in a scenario where they’d benefit from using an instant offer company.
Below are 20 examples where instant home offers can help in real life situations:
Lifestyle Changes
- Relocate for Work: A person relocating for work has a short window to not only buy a home in the new location, but also sell their current home and move. An iBuyer can make the process quick and easy.
- Long Commute: Career is a priority in the homeowner’s life, so it’s time to move closer to work to shorten the commute, while not having to spend a lot of time outside of work to sell their current home.
- Marriage: When both partners sell their homes to move into a new combined household, an iBuyer makes the double sale manageable.
- Divorce: A couple is forced to sell their home as the split alters both of their incomes and lifestyles. Both will be moving out of the current home, so they need to manage the sale amicably.
- Growing Family: A family expecting more children can’t keep their home spotless for showings to potential buyers. They don’t have time to spare to prepare and list their home on the market.
- Empty Nesters: The kids have moved out and the parents are simplifying their lifestyle to enjoy this new phase. This includes using a quick and convenient way to sell their home and no longer be tied down.
- Becoming Ill: Health becomes top priority. It’s necessary to downsize and have the right resources closeby. Logistics for selling the home and moving are painless with an iBuyer.
- Caretaking: Deciding to move in with someone who is ill and needs constant care involves adapting priorities, including selling one person’s home and finding an affordable home with accessibility.
- Death: When a loved one dies, the family decides to sell the deceased’s home while settling the estate. Managing the business of the estate along with the loss of a loved one can be overwhelming. Selling an asset of the estate doesn’t have to be.
New Opportunities
- Rental Property: A rental property owner no longer wants to maintain and manage their property. They want the cash from their real estate investment without spending more time and effort to earn the money.
- Vacation Property: The smaller vacation property can be sold and the cash can be invested in a better home without the hassle of fully diving into listing the house on the market, leaving more time for relaxation.
- No Strings Attached: The homeowner no longer wants to be tied to their property. They want to sell the home so they have the flexibility to rent or travel.
- Increased Income: Increased income relieves the pressure to make decisions based on getting the best deal. The homeowner can quickly go after what they really want.
- Upgrade: The location and features of the current home are no longer ideal. Selling to an iBuyer frees up the money to move on to something better.
Financial Motivations
- One Mortgage: A homeowner wants to pay off their current mortgage and buy another home without the uncertainty of carrying a second mortgage.
- No Renovations: To avoid investing more money in the home and taking on the work of renovating, the homeowner sells the home as-is to an iBuyer, without having to pick up a paintbrush.
- House is Too Much: It costs too much time and effort to maintain the house and yard. The homeowner feels overwhelmed and wants to sell the home as-is.
- Price is Too High: The adjustable loan payments have gotten higher and the homeowner’s income no longer covers them comfortably. Stopping these high payments outweighs the interest in getting optimal value for the home.
- Buy a More Expensive Home: Selling their current house frees the homeowner up financially so they can invest more and be more likely to qualify for the larger, more expensive home they’re interested in purchasing.
- No Contingencies: A homeowner sells their home through an iBuyer so they won’t have to put a contingent offer in on a dream home in a competitive market, where they could otherwise risk losing the deal.
Instant Home Offers are Growing
As instant offer companies grow, they develop within targeted cities. This includes areas with larger populations of millennials, veterans and empty nesters who are more likely to want to buy and sell homes that fit within iBuyers’ services.
At least three out of the top five iBuying companies service many cities including Denver, Phoenix, Dallas-Fort Worth, Houston, Austin, Las Vegas, Atlanta, Charlotte, Orlando and Raleigh-Durham. These companies continue rapid growth, expanding into even more markets in 2020.
Keep an eye out for iBuyers in your market. You can easily apply to see if an instant home offer could be a more convenient option for selling your home, adding you to the list of growing successful iBuying customers.
Recommended Reading
https://www.thebalance.com/why-home-owners-sell-1799021