What Is A iBuyer? If You Need To Sell Your House Fast, See If A iBuyer Is The Right Choice For You
5 Things To Know About Working With A iBuyer If You Need To Sell Your Indianapolis House Fast.
If it’s time to sell your house in Indianapolis there are many more options available to you. You can sell the house yourself, hire a real estate broker, sell your house to a local real estate investor or you can sell your house to a iBuyer. iBuyer’s may be a new option, one you may or may not be aware of. The “i” stands for “instant.” It’s a direct method of selling your house, similar to a real estate investor. While a fast sale of your house is appealing, there are many factors you need to consider before signing on the dotted line. In this article, we will explain what a iBuyer is, discuss the viability of a iBuyer and whether or not its the best option for you and your family.
Let’s First Begin By Defining What An iBuyer Is?
An iBuyer is a company that purchases real estate directly from homeowners looking to sell their house fast, and usually for cash. Often times they make offers and purchase properties without ever touring the house. Because they lack a general sense of the local market and the current condition of the property, most of their offers are significantly below market value.
You see, there are many factors that impact the value of real estate, with location being the single biggest factor. But in real estate, everything matters! To really truly determine the value of a property, we need to have a firm grasp of the local market. We need to understand building practices over the past 100 years and understand current trends in consumer preferences. Older homes tend to have more “major” defects, requiring greater capital to correct. Knowing market perceptions relative to local school systems, access to entertainment, major highways and local economy are all instrumental in deterring a homes value. This type of expertise is most closely understood by local investors, not large companies located on the other side of the country or even companies in foreign countries.
If you need to sell your Indianapolis house fast and are looking for someone to pay cash for your house and close quickly an iBuyer can be appealing. But there are a few serious drawbacks you should be aware of before you move forward. We will also discuss why you may want to consider working with a local real estate investor over an iBuyer so that you can make the most informed decision.
The Whole Process Is Less Personal
The process of working with an iBuyer is similar to working with a bank. We all have experience working with banks. When you work with an iBuyer, remember you are just a number to them. They aren’t trying to cultivate a relationship. They aren’t trying to get to know you or your situation. They are in the business of building unique solutions that best fit your needs. Their systems are automated, designed to provide “low ball” offers. If you decline, they just simply move onto the the next seller. It’s the principal known as “the numbers game.” If you make enough “low ball” offers, you will eventually land yourself a deal. In general, the process is anything but personal. They are not in the business of giving you the best deal possible. This can only be achieved by throughly understanding your situation with an intimate knowledge of the condition of your house and the local community.
When you work with Ittenbach Capital, LLC., we strive to to learn as much about you, your situation and your market as possible so that we can build a solution that best fits your needs and provides you with the best price possible.
There Is Little To No Room For Negotiation
Most iBuyers aren’t going to negotiate their offer with you regardless of any data you may be able to provide them to justify a higher sales price. They simply don’t have the resources available to them to dedicate to providing you the best price possible.
As an experience real estate investor, I’ve seen first hand what iBuyers resell their houses for. They make a great deal of money low balling sellers and then remarking those same house near full market value despite requiring significant capital investment in renovation. This is greed in its purest form. Homeowners are swindled out of their hard earned money and inexperienced investors are paying too high a price for real estate. This doesn’t help local economies. This takes money from local economies and deposits it in corporate accounts across the country.
When you work with a professional home buying company like Ittenbach Capital you will have the opportunity of working with someone who is open to discussion, one that will take the time to get to you know your unique situation and take into consideration local market dynamics to deliver to you the best price possible.
Be Prepared For Low Ball Offers!
Convenience comes at a price. Couple that with corporate greed and you, as the homeowner, will be on the losing side of the equation. You will undoubtedly be able to sell your house in Indianapolis fast but it will come with a hefty price.
Research studies show that homeowners selling their house to an iBuyer as opposed to a local real estate investor will receive about 11% less on average. This doesn’t include commissions and fees many iBuyers levy on homeowners. When you work with Ittenbach Capital, you will still be able to sell your house fast but with more money in your pocket. No hidden fees! We pay all your closing costs. Avoid all the fees and hassles of selling your house by selling it direct to Ittenbach Capital.
Paying Commissions Can Be Expensive
When you hire a real estate agent in Indianapolis to sell your house, you will have to pay them a commission. Commissions can range from 5% to 7%. When you work with an iBuyer, fees could reach up to 11.5%. Ouch! A lot of this depends on the iBuyer but you can bet that there will be out-of-pocket expenses to close the deal.
If you do the math and take inconsideration lower purchase price and higher fees, is it really worth it to work with an iBuyer? Now consider this, there are plenty of real estate investors in your area you can work with, each of which can offer the same convenient and hassle free services of an iBuyer but with out the fees. At Ittenbach Capital, we always pay fair market value for Indianapolis homes. Our process is simple and transparent. We will take the time to walk you step by step through the process. Our clients aren’t just another number. We cultivate relationships with our clients as it’s a core principal and the reason why we got into this business in the first place.
In addition to service fees charged upfront, many iBuyers will tack on additional fees (like administrative, shared closing costs expenses, filing fees and much more) all which reduce the amount of money you can put in your pocket. Remember, this is your house and you get to make the rules. Don’t let a big company push you around. It’s your hard earned equity and at Ittenbach Capital, we like to see that money go into your pocket.
Working with an iBuyer is a more convenient way to sell your house, but there are risks you will have to be prepared for. If you aren’t careful and take the time to weigh your options, you could be leaving tens of thousands of dollars on the table.
At Ittenbach Capital, we have many options and programs we’ve developed over the years to ensure that we can build a solution that best fits your needs. We do buy houses for cash, but we have so much more to offer. We provide the option of a joint venture, where we undertake the burden of repairs and updates so that your Indianapolis house is positioned to get the highest price possible. We also own Ittenbach Realty, a full service real estate brokerage firm. This affords our clients the option of first seeing if we can sell the house for you in a timely manner before falling back on a cash offer. This ensures that you get the most out of the sale of your house. When listing with Ittenbach Realty, we offer a “tune up” program. This is where we invest up to $5,000 to freshen up your house with new carpet and perhaps a fresh coat of paint. This money goes a long way of ensuring that you get the best purchase price possible.
Ittenbach Capital, LLC is an accredited business with the Better Business Bureau of Indiana with an A+ rating. Our customers rate us 5 stars for superior service. Click here to see why our customers love us!