Stay Focused: Technology in Real Estate "iBuyer"
Randal: Welcome back to Stay Focused, Focus Real Estate's weekly video series. Today, our topic is technology in real estate, we're going to talk about I-Buyer.
Erik: I-Buyer, me buyer?
Randal: No, Eye-Buyer.
Erik: Eye-Buyer, okay.
Homer Simpson: Oh, I get it! I get jokes.
Randal: It's really talking about an I-Buyer program, which is more or less an internet buyer, for your home. What is that, what does it mean?
Erik: Basically what it is, is where someone comes in and offers to pay you, typically, cash price for your property.
Randal: Sight unseen, right? They don't even come to look.
Erik: A lot of times sight unseen, and oftentimes with no contingencies.
Randal: Close when you want to close.
Erik: Make a very quick, easy, usually cash, flows on the date you want. So, we've seen these around for years. Sites like-
Speaker 4: Sell your house fast and without the hassle!
Erik: And there are some advantages and disadvantages of these programs for you, as the seller and homeowner.
Randal: Absolutely. And one of the things that they're pointing out online, when you go to any I-Buyer site, they're saying, "Take the stress out of selling your home. Fill out this form. We'll offer you a price. You close when you want to close." How could you get less stressful than that, right?
Randal: Except there's a catch.
Randal: They're going to give you less than market value for your home.
Michael Scott: No, God, please, no, no!
Randal: It's basically a wholesale price of your home. What they're going to do with this, then, that I-Buyer is going to turn this property around and flip it. So basically, some of your equity will then be taken advantage of by the I-Buyer. So then, they put the property on the market and then resell your home. Also, one thing to let you know, there's not much of this in Massachusetts. Why? Why isn't there much of that here?
Erik: Because our property is so varied and different in styles.
Randal: And this is terrific in areas where development has been more recent than it is here, but when you're talking about homes that were built in 1875, 1920, 1910...
Erik: 50, yeah.
Randal: You know, and the variety of the level of finish can be enormous, so there's a lot of more variables in this area for home condition and value.
Erik: It's more difficult for these programs, so we don't see as much. So, you'll be hearing more about that. If you have any questions on that, give us a call first, to see if this is something that might work for you, and to talk about the pros and cons, how that could fit or maybe not, for you. We'd be glad to help.
Randal: Until next time, stay tuned... Stay focused.
Erik: And stay focused.
Erik: All right.
Randal: All right.