It’s no surprise that advances in technology are changing the real estate industry. Years ago, home buyers had to rely on real estate agents to see the homes available in the local market. Now, real estate agents are still an important part of the home buying process. But buyers can also look online to view listings that have been shared with the general public.
New Trend in the Real Estate Industry: iBuyers
One of the latest trends that we are seeing across the nation is the shift to “iBuyers.” People who are looking to sell their homes quickly and easily turn to real estate companies such as OpenDoor, OfferPad, and Knock. These brokerages leverage the internet to minimize overhead in the buying and selling process.
Most of the sites give homeowners the opportunity to request an offer on the property, which is provided within 24 hours. Some sellers like the option to move as quickly as possible, but they don’t realize how much they are giving up by working with an online company instead of an in-person real estate agent.
Investors have jumped on board, predicting that online sales are going to change the real estate industry completely. Are these new startups and investors on to something? Or is this trend simply being propped up by investor speculation and share prices, without real profits to be made in this questionable business model?
Where These Real Estate Websites Fall Short
It seems like a dream to have an offer on your home in 24 hours and close on the deal in 10 days. But like many things in life: if it sounds too good to be true, then it probably is. Here are a few drawbacks to using an online service when buying or selling a home:
- High Fees: You can expect 6% commission fees when working with traditional real estate agents, or much less when choosing our team at DUFFY Realty. In comparison, some of these websites (such as Opendoor) charge as much as 14% in fees. The costs add up!
- Cost of Repairs: After you have accepted the offer, the website team has the opportunity to inspect the property. If anything needs to be repaired, then the cost will be deducted from the sale price. Unfortunately, you don’t have the option to shop around for an affordable contractor, which means that you are likely over-paying for the repairs.
- Personalized Attention: Nothing beats the one-on-one service that comes from working with a real estate agent in person. Your home is one of the biggest investments you will make, which is why it is important to have an industry expert to help with negotiations and paperwork.
At DUFFY Realty, we offer affordable real estate services without the need to sacrifice the personalized services available in the industry. If you are looking for a way to save money on your home sale/purchase, talk to our team instead of using these unproven online real estate websites: (678) 318-1700