Want to know how to lose $60,000 in 10 days? Call an iBuyer! You know … iBuyers are the gimmicky real estate ads we see on TV and radio. They like to tout “no stress” with “guaranteed offers.” I like to call them equity stealers. They’ve built a whole business model around stealing your home’s equity right out from under you.
You’d think anyone in their right mind would choose the extra $57,000. But what we’ve discovered is that sellers aren’t emotionally attached to money tied up in the equity of their home. If it’s not physically sitting in their bank account with tangible access, they are more willing to trade it for convenience. iBuyers prey on that mindset, thus making otherwise smart people vulnerable to their gimmicks.
To add fuel to the fire, there’s an intense negative emotional response for a seller worrying about getting raked over the coals on home inspection items or putting in time and effort making pre-listing repairs or staging. These two reasons are the top motivators for sellers to dump their homes to investors and iBuyer brokers.
We recently intercepted a seller who was tempted to hit the easy button with an iBuyer before deciding to list with The Wistrick Team instead. We generated 8 offers on her home and sold to an all-cash buyer in less than three days. How’s that for convenience? By listing with our team, the seller walked away with $57,000 more than what the iBuyer said her house was worth.
We believe that some things are worth fighting for. In its simplest form, your home’s equity is a separate savings account. Buying right and selling smart gives homeowners the leverage they need to buy better homes, investment properties and vacation homes. Equity can pay off debt, car payments, and a million other things. Before you or anyone you know considers pressing the easy button with an iBuyer, call The Wistrick Team first. We will come to your home, evaluate its current condition, provide return-on-investment advice, run a market report and calculate a detailed net sheet of what you’ll clear by selling with us.
BUT MIKE, TRADITIONAL SELLING IS SO OLD SCHOOL!
iBuyer’s marketing teams have done a great job demonizing the word “traditional approach” in order to make their offerings sound more attractive. Their websites and ads literally make you feel like you’re at a fast food restaurant picking from a menu of two options—“Would you rather we take your equity upfront OR pair you with an inexperienced agent getting paid peanuts to list your home and screw you over after months of on-market torture?”
Sure, the traditional route might require a little effort on your part. But if you like money, you’ll roll up your sleeves and do what needs to be done to get it. If your pre-listing repairs cost you $5-10K, it will be worth every penny when you see an extra return of $60,000 at the closing table. If you DON’T like money, then call an iBuyer because they certainly do!
Remember, an iBuyer’s goal is to capitalize on your unwillingness to prepare your home to sell for market value. The real GOTCHA moment comes when they tack on an additional 5%-13% “service fee” on top of their low-ball offers. Meanwhile, a traditional broker costs around 6% commission and sells for an average of $50K more. No matter how you slice it, iBuyers will always net you less.
The 3 Don’ts!!
In closing, selling isn’t always the most enjoyable process. But savvy homeowners understand the potential of their home equity as a tool to better their lives. If you’re thinking of making a move, The Wistrick Team is always here to help!