iBuying 101: Part 1
Whether you’re new to the industry, selling your first home, or even familiar with the real estate market, you may not have heard of iBuying; the emerging trend in real estate of receiving online offers for your home. Popular in the United States for the last few years, iBuying companies have recently begun to pop up in Canada. If you feel somewhere between hopping on the bandwagon and dismissing it outright as a passing fad, you are not alone! This two-part blog feature might shed some light on the popularity of iBuying.
Just like any industry, real estate has been greatly affected by the increasing demand for efficiency and convenience in the age of the internet. Consumers want to sell their homes quickly for the best price possible — and why shouldn’t they? Here in 2019 we like to bank online, buy our pants online, and now sell our homes online, bypassing the discomfort of endless open houses and the heartbreak of buyer dropout.
What does this mean for consumers? The ability to choose a different experience than the one currently offered by traditional real estate services. Right now iBuying companies are providing a variety of models to consumers, and it’s important to know what services you can expect before signing an offer with anyone buying your home. The goal of any trustworthy company (especially iBuyers) should be to provide you with guidance and professional tools at every step of the process, not leave you to navigate alone, fumbling around in the fine print.
Ideally, finding an iBuyer who can do the most for your property should be your priority. Working with a licensed Realtor ensures your home gets the benefit of quality professional expertise, plus market exposure, clear rules and regulations, easy-to-verify credentials, and the support of a brokerage. Dealing with someone who understands your home’s value is paramount, so Sweetly has decided to combine the two approaches — the ease of iBuying within a fully regulated real estate brokerage.
If you’ve ever sold a home the traditional way before, you know there’s nothing worse than sifting through lowball offers from careless buyers who undervalue your home. When they’re successful, iBuyers accurately generate offers on homes that represent your home’s value based on criteria like neighbourhood, square footage, and comparative pricing from similar properties.
What kind of time and money do consumers save by selling to an iBuyer? This will vary based on the company you choose, but can cover any number of things. Listing costs can be pricey, as well as mortgage/financing costs, utilities, and property taxes. Your time can also add up in the form of repairs, open houses and showings, and potentially missing out on buying your dream home when you’re ready.
The convenience of iBuying can mean consumers get matched to a service that fits their needs better than the traditional methods currently available in Edmonton. Of course, iBuying isn’t right for every situation, and having a Realtor guide you through the process means you have professional advice on whether to accept an online offer or start by listing with an agent. But if you own a house and need to sell in time to move out or to make an offer on a new home, iBuying may be just the solution to your predicament!
Want to know more about how Sweetly’s model fits in to the Edmonton market? Read Part 2 of our series on iBuying!