From takeaway meals to on-demand streaming, many of us value speed and convenience highly. The same is true for many modern house sellers who want to sell their property quickly and without going through the effort of getting it ready and listed the conventional way.
An instant home offer is a cash offer from a corporation to buy your house rapidly, frequently within one day. It is commonly referred to as iBuying (the “i” is for “instant”). These iBuyers create an offer price using both open data and private algorithms. While quick, it’s economical because your offer is less than what you could get on the open market. After all, iBuyers must budget for their overhead and operating expenses and the price of fixing up their house, which they typically want to resell shortly after.
How to get a quick offer on a house
You should understand the procedure if receiving an instant offer for your house sounds like a good option for you. Remember that not all home markets have iBuyers; the two remaining iBuyers with giant footprints are Offerpad and Opendoor. However, even if the big players don’t acquire houses in your town, there’s a good possibility that a smaller local corporation does.
Getting an instant offer on a home includes asking an iBuyer directly, as opposed to the conventional approach of marketing your home and waiting for interested purchasers to come to you.
How? Read on.
1. Compare prices
Examine client testimonials and the iBuyer’s Better Business Bureau rating to determine its reputation. Once you have a short list, you can contact each of them and compare their offerings and service charges. It would help if you didn’t have to pay anything to ask for an offer.
2. Ask for a quick offer on a house
Through the iBuyer website or app, you will be asked to enter information about your home. However, be ready to also respond to any other inquiries the company may have, such as the age of your roof, the last time your furnace was replaced, or details about any recent repairs.
3. Get your fast house offer and examine it.
Most businesses will send you an instant home offer within 24 hours of making your request, though occasionally, it may take longer. If the deal appeals to you, properly read it so you know all the costs involved. Here, a real estate lawyer can be a valuable source of information.
4. Get your house inspection ready.
Whether you accept a fast cash offer from an iBuyer for your home, they will generally schedule a home inspection to see whether there are any severe problems with the property and what repairs could be required. You may carry out those repairs independently or deduct the projected repair costs from the sale price.
5. Select a deadline.
You often have the choice of selecting a closing date once the inspection is finished and the offer has been finalized. You can close with certain iBuyers in as little as seven days; many are lenient up to 90 days.
Pros and cons of an instant home offer
Pros
Accepting an instant house offer has several perks, but some drawbacks may exceed the rewards.
The property doesn’t need to be prepared for sale;
There are no in-person open houses or showings,
No appraisal required, no Realtor commission costs, and an accelerated closing (and you can choose your closing date).
Cons
Lower sale price
Fees between 5 and 10 percent of the sale price.
Risk of getting no offer, particularly as the iBuyer market grows.
Should you accept a quick house offer?
Depending on your situation, selling your house to an iBuyer may be beneficial, particularly if you need to sell quickly and need the money as soon as possible. But if you have more time, a conventional sale with a knowledgeable neighborhood real estate agent by your side will likely net you more money.
One last thing about fast home offers
Your property is your most valuable asset, making up a significant portion of your net worth, so it’s worth looking into listing it with a real estate agent. But if you’re incredibly strapped for time or money, an iBuyer is something to consider.
