iBuyers are coming to the Treasure Valley. Are you ready?
In case you haven’t heard, companies like OpenDoor, Redfin, and Zillow are creating massive investment portfolios by buying properties at discounted prices. Instead of a traditional seller-agent process, these iBuyers reach out to sellers directly and make an offer. The sale typically moves through quickly and leaves sellers with cash in hand in about 30 days.
iBuyers are a great option for someone who is less concerned about equity and more concerned about convenience. Sellers who work with iBuyers are able to bypass the traditional 6 percent commission that most real estate agents make.
As with most quick-turn options, it’s important to understand the fine print:
• iBuyers typically purchase homes for below market value.
• iBuyer transaction fees can fluctuate wildly.
• Sellers will still have to participate in a home inspection and repairs, but they might be last-minute.
It can be difficult to explain to sellers that what seems like a simple process can result in a price that’s 20-30 percent below market value. In a market like ours, where sellers stand to make a hefty profit if they’ve owned their homes for any length of time, iBuyers can make waves. In Arizona alone, where iBuyers are common, the practice now makes up 6 percent of home sales.
Fidelity National Title can help you educate sellers through our FidelityAgent ONE tool. Our new iBuyer feature allows you to calculate the overall cost of selling to an iBuyer rather than choosing a traditional route. You’ll empower your customers to make a better decision during an emotional time.
Just like the rest of our FidelityAgent ONE app, this feature is branded specifically to you and your business. It’s easy to pull this information into your listing presentations or share it on social media so your customers understand their options and the potential consequences.
To use the iBuyer feature on your FidelityAgent ONE app, make sure you have the latest version. If you’re not already using FidelityAgent ONE, download it today from your app store. You’ll be armed with iBuyer information, but also quick and professional net sheets and buyer estimates, geo reports, and much more.
Although we believe the convenience factor will make iBuyers an active part of the industry, we want to continue to educate consumers so they can make a choice that best fits their needs. As always, you can contact your team here at Fidelity National Title for more information or assistance with FidelityAgent ONE or any other concerns you might have. We’re here to help you build your best business.
Phil Archer is vice president - Treasure Valley manager and senior escrow officer at Fidelity National Title.