Should I use an Ibuyer like Zillow or open door to sell my house?
What’s an Ibuyer these are companies that will make an offer and buy your house instantly.
Some of the more well-known companies are Zillow open door or Redfin ,ibuyers advertise sell instantly less stress zero commission did that catch your attention using an eye buyer is convenient fast and possibly less hassle but will you save money versus using a real estate agent let’s dig into the details if your home is on the open market through a real estate agent.
You will generally get a higher price ibuyers tend to offer below market value for the sake of this example we’ll use four hundred thousand dollars as the balance on your current mortgage that will be paid off at closing closing costs include title insurance escrow fees prorated tax etc paid at closing on the open market you have options you can shop around and choose your own title company and mortgage lender to get the best rates and fees.
ibuyers provide these services for convenience at a higher price commission is paid to a real estate agent as a percentage of the sale price and is negotiable we’ll use six percent in this example the total commission is split between the seller agent and buyer agent as well each agent’s office receives a percentage of the commission.
ibuyers don’t charge a commission to purchase your home rather ibuyers charge a service fee this fee covers selling fees risk etc and can range from 6 to 11 a home inspection will uncover things that will need to be fixed when working with a real estate agent the cost is often negotiated with the buyer an eye buyer commonly requires a non-negotiable charge for repairs the longer it takes to sell your home the higher the prorated fees such as taxes become this is a benefit in using an ibuyer.
As they can provide a quick close let’s see what you’ll net and put in your pocket once the mortgage is paid off and all the fees are deducted as you can see using a real estate agent provides a higher net than using an eye buyer the cost of convenience is over twenty thousand dollars less in your pocket i like to think of an eye buyer like a SA or Holiday you get what you need quickly and conveniently.
Although it may not be at the best price and we’re willing to pay for the convenience I hope this has been eye-opening and educational my suggestion do your homework and do what is right for you and your situation.