iBuying - WTF?!
iBuying - the offering of instant cash offers on a property without having a traditional sale
of the property.
This is the new craze - Redfin and Opendoor are the platforms that started it all, and now it is being duplicated with other companies. Is this a good thing? Depends on the situation, but in 99% of cases, NO!
Here is a story of a family who looked into using Opendoor to sell their home. Now "looked into" literally means, they wanted to know what the crazy was all about, they never had any intention of utilizing this web-based trickery.
So the property is a 4 bed, 3 bath, 2 car garage single family residence. Originally built new for roughly $340,000 7 years ago. Recently, their neighbor sold their home in the SAME neighborhood, with the SAME floor plan, with LESS upgrades for $489,000. WOW!
I completed a CMA on their property and it came to $529,000 (they had a ton of upgrades and a corner lot). They listed with me, and we sold in 7 days at asking price (yay!). The sellers contacted Opendoor and tried their iBuying option. They were offered $440,000 with a 7% commission for completing the sale with cash.
Amount received by traditional sale = $502,550
Amount they would have received from Opendoor sale = $409,200
Numbers don't lie - SELL WITH US!
Matthew and Brooke Schnitker