Reasons for a seller considering an iBuyer could include needing quick cash, relocating due to changing jobs, an expensive divorce, having to sell a house in order to buy a new house, and the eternal dread of having to go through the traditional listing process.
Careful: this could easily be confused with shady local companies and home flippers who buys homes for cash, but legitimate, reputable brokerages are getting in on iBuying. Keller Williams recently tested an iBuyer program and completed 100 transactions. The company joins Realogy, Zillow and Opendoor as iBuyer players. SoftBank recently invested $400 million in Opendoor through its Vision Fund.
Today, the IBuyer program may only appeal to less than 10% of the population, but as more homesellers jump on the band wagon, this will lead to lower comps in the market and lower overall home equity. Tell your neighbors to be careful when approached with these type of programs, because selling your home through this program could drive prices down in your community.
Selling a home was never meant to be quick and easy-it should be strategically planned and marketed properly to maximize the return on your investment. Seller Beware!