As technology continues to expand into the real estate business, iBuyers have begun to flex their muscle in the buying and selling of properties. While using an iBuyer may seem like an easy way to buy or sell your home, here are 5 reasons a local Los Angeles agent will beat an iBuyer.
Availability in Your Area
While there are quite a few iBuyers out there these days, they only provide their services in specific areas.
Whether it’s due to the availability of personnel or limited market knowledge, an iBuyer is definitely a “your mileage may vary” sort of scenario. Everything from looking through listings to closing is all controlled within their highly-regulated, closed ecosystem, and is designed for an iBuyer to profit before anything else.
On the other hand, you’re sure to be able to find a real estate agent willing and able to help you out just about anywhere.
No Personal Touch
A qualified and experienced real estate agent will make their benefits known immediately by the way they greet you and carefully walk you through the process of buying or selling your home. An iBuyer is attempting to complete any necessary tasks remotely, and a lot can be lost in a situation with such limited communication.
Being able to have more direct contact with not just your agent but also any buyers or sellers and their agents can go a long way during negotiations. A knowledgeable real estate professional takes the time to get to know what your goals are and then directs you on the most viable and worthwhile approach to achieving those goals.
iBuyers Thrive on Turnaround
Where that personal touch goes a long way to assist you during negotiations, an iBuyer is trying to keep things moving in order to maintain their sales.
The iBuyer makes or breaks their week on moving as much property as possible. For the iBuyer, everything is about the quantity of sales rather than quality. Once you become involved with their services, their goal is to get you into negotiation and close the deal as soon as possible. For some clients, this can be done at a dizzying pace and leave them feeling like they don’t have the time to think things through and be confident in the choices they are making. Buyer’s remorse is the last thing you want to feel after closing a deal.
It’s About Who You Know
With iBuyers servicing specific areas, they do create connections over time. However, it’s a limited relationship based on moving property rapidly, sometimes without taking into consideration the needs and goals of their clients.
Real estate agents cultivate their business over a long period of time by building a reputation and making important networking connections. By knowing the other agents and real estate professionals in the area, it allows agents to stay in contact and push for a better deal for their clients.
The fine print can be a bit daunting, and iBuyers like to try concealing their commissions to a degree.
First and foremost, different terminology is often slung around to hide what exactly the iBuyer commission truly is. Some sites will call their commission “fees,” “market risk,” or even “experience charge.” This all boils down to the amount of money you will be paying in order to use their services.
Beyond using different terms to hide what exactly you’re paying for, an iBuyer’s commission is on average 7-7.5%, whereas a real estate agent will normally receive a 5-6.5% commission. That number seems small but can result in a difference of thousands of dollars at closing.