It’s no secret that iBuyers are expanding their reach in the real estate market, causing a disruption in the industry. While this trend may be causing agents to worry about their place in real estate, there are ways to use iBuyers for your benefit. You may even be able to get a cut of their profits.
Why are iBuyers seen as a threat?
Because they’re able to swoop in and offer sellers an immediate cash offer, iBuyers are seen as a negative. Sellers can avoid showings, minor repairs and the stress that comes with a closing. When homeowners are faced with major life changes, selling to an iBuyer may be the best option for them.
What are the negatives of selling to an iBuyer?
The major downside is that homeowners will likely receive less than their home is worth. Some may be willing to trade this for the convenience of a quick sell, but they could ultimately be missing out on thousands of dollars. Sellers will also need to go through the process of having the home inspected. In addition to this, they’ll still pay the traditional closing costs, including title, escrow, HOA and transfer fees. When compared to agents, iBuyer fees are higher than a typical agent’s commission.
How do I address this with clients?
One of the biggest mistakes you can make is hiding the fact that iBuyers exist. This will not only make you look like you’re out of the loop, but it will also damage the relationship you have with your client. Earn your client’s loyalty by offering to take a look at the iBuyer offers available to them, assuring them that you want to find the best option for them. If your clients are leaning toward an iBuyer offer for the convenience, show them exactly how much money they’re leaving on the table. Explain to them that putting a little extra time and effort into showing their home can turn into a big gain and potentially get them a better offer.
How can I become an iBuyer?
While this may not be the best option for everyone, if you’re in a situation financially where you can purchase properties, you may be able to take a cut of the iBuyer market.
There are two groups of people who are most interested in an iBuyer offer: those who are willing to take a low offer, and those who want the money from selling their home before buying a new one. Target these groups through advertising and draw them into a landing page for their information.
The other important part of becoming an iBuyer is building a relationship with a builder or contractor so that you have someone to complete repairs. If you find a home that you’re not able to purchase as an iBuyer, see if you can list it instead. This is a great way to generate a new stream of leads.
While iBuyers may seem daunting, they may provide some benefit to you. Join the Secrets of Top Selling Agents Facebook Group to learn more about iBuyers and watch some of our previous Secrets of Top Selling Agents webinars on this topic.
Joe Sesso is an author and national speaker for Homes.com. For more information, please visit marketing.homes.com.
