iBuyers: What to know about selling your home for an immediate cash offer

Key insights:

• Online investment firms known as “iBuyers” provide automated offers to home sellers.
• For some sellers, avoiding the traditional market and receiving a fast, all-cash offer can be the right path.
• To help homeowners who need to sell quickly and with certainty, Edina Realty has partnered with QuickBuy^®, a service that takes into account the true local market value of houses and leverages the convenience of selling to an iBuyer.

If you read or watch the news, you may have heard about a non-traditional home buying model known as “iBuying.” iBuyers tend to be larger investment firms that make fast offers to home sellers, based on a home value that’s generated by their proprietary algorithms.

So, what are the advantages and disadvantages of using an iBuyer to sell your home? Let’s dive in.

Understanding an iBuyer’s automated valuation

When iBuyers make an offer, it’s usually based on their algorithm’s analysis of local market values and nearby, recently sold homes. So if your neighbor with an identical bed and bath count sold last year, the iBuyer may rely heavily on that sale price to determine their offer.

But what if your neighbor’s house still boasted 1970s era shag carpet, while your decor is inspired by the newest trends on HGTV? What about the return on investment of your new roof, picture-perfect landscaping and energy-efficient windows?

While algorithms might get an iBuyer in the general vicinity of the value of a property, they can’t take into account the work you’ve put into your home. That’s why it’s always beneficial to have a local REALTOR® help you determine the price of your home before selling. They understand that your perfect rows of petunias and your bright, modern decor will attract many more buyers than your neighbor’s house did — and that you could get a higher offer as a result.

Which homeowners benefit from selling with an iBuyer?

For the right seller, using an iBuyer can be advantageous. Homeowners who opt for selling with an iBuyer typically fit into one of the following scenarios:

• They want to move without staging or updating the house.
• They need to sell quickly due to a professional move or personal reasons.
• They want to avoid the hassle of showings, open houses and buyer foot traffic.

In today’s fast-moving market, though, many sellers are concerned about finding the right home to purchase after they sell. For these folks, working with a certain iBuyer can help provide more flexibility for their move.

QuickBuy, a modern option for sellers who need certainty and flexibility

At Edina Realty, our 2,300+ agents represent sellers in every neighborhood across Minnesota and western Wisconsin, offering full-service real estate solutions for sellers who want a more traditional home sale. But our company and our agents also recognize that not every seller does want to go that route.

Edina Realty has now partnered with QuickBuy, a financial partner that allows us to offer homeowners a larger variety of options when they sell. These services include:

• The full-service real estate solution we’ve been providing (and improving upon) for more than 60 years.
• An immediate “Quick Buy” offer that allows the homeowner to avoid showings and home prep, work with a cash buyer and close in just 14 days if desired.
• A QuickBuy “lock,” which allows sellers to lock in an offer that they can accept at any time in the next 150 days while the home is traditionally listed on the market (provided the home stays on the market).
• The ability to sell the home and then lease it back for a short time. This option gives sellers the sales proceeds they need to fund their next home, and allows them to avoid short-term rentals or other transitional housing as they look for their next property.

Here’s one more important difference about our partnership with QuickBuy: Prior to getting the cash offer from QuickBuy, you can meet with an Edina Realty agent to receive their qualified market analysis of your home’s value, should you list it on the traditional market. Then, whether you choose to sell on the traditional market or accept the QuickBuy offer (and service), you’ll have peace of mind that you’ve made an informed decision.

Still not sure which path you want to take when selling your home?

It’s a big decision, and it’s smart that you are not taking it lightly. At Edina Realty, we are here for you whether you want to sell quickly to a cash buyer or position yourself for multiple offers on the traditional market. We even offer a pre-market option for sellers and their agent to begin marketing their home among 2,300 Edina Realty agents who may just know the right buyer. No matter what, you’ll want to get started by securing the help of a professional real estate agent you can trust.

Reach out to Edina Realty or your local agent today to talk through your options and find the best selling path for you.