Homeowners wanting to sell their homes to iBuyers such as Redfin, Zillow, and Opendoor have fallen out of contract due to the Coronavirus (Covid-19) market shock. This article will discuss what an iBuyer is and why they no longer want to buy your house.
What is an iBuyer?
iBuyer refers to a company that provides homeowners with an instant cash offer on their home. The “i” in “iBuyer” stands for “instant,” which is why they’re also called “instant offers.”
iBuying is one of the easiest ways to sell your house because you do not have to involve a real estate agent. An iBuyer does not care about the condition your house is in at the time of the sale.
This means that you never have to make any costly repairs to convince them to agree to buy your home. Additionally, renovations, closing costs, commissions, insurance, and warranties are not necessary for iBuying, or selling to a real estate investor in Texas.
Another reason why many homeowners in Texas prefer iBuying to traditional real estate selling, is that the real estate investor typically closes fast, the offer isn’t contingent upon financial approvals and you don’t have to worry about cleaning or intrusive multiple showings.
This selling option is especially attractive to sellers that do not want to risk having multiple buyers in and out of their homes, potentially bringing in Coronavirus (COVID-19) into their homes.
DFW Professional Home Buyers has provided many custom solutions for homeowners looking to sell their house fast in Texas. We provide real estate expertise and exceptional communication to help you get to your next chapter. If you are looking for a hassle-free solution, we can help. Give us a call at 817-442-7702 to discuss your situation.
Why are iBuyers no longer buying homes cash in Texas?
Currently, iBuyers in Texas, including Redfin, Zillow, and Opendoor, have temporarily stopped purchasing homes instantly due to the Coronavirus disease (COVID-19) pandemic that has hit all the continents, until a later date.
The iBuyers are prioritizing the safety of their customers as well as that of the public and employees through social distancing. This does not mean that iBuyers in Texas will not resume their normal activities after the pandemic is over.
However, experts predict they will not resume activities due to the year over year decline in housing growth. In fact, an April report from Fannie Mae projects existing home sales will fall by 15% in 2020.
DFW Professional Home Buyers is taking extra precautions as a result of the Coronavirus (COVID-19) pandemic. We have been self-quarantined since before it was recommended in Texas. When going out we use masks, gloves, and shoe covers. We practice social distancing protocols even while viewing properties. We wipe down hard surfaces that we may touch during our visits. If you need something specific, we would be happy to accommodate your needs.
How do iBuyers determine if they want to buy your home?
Unlike a buyer that intends to buy your house to live in it, iBuyers want to make sure their purchase is a good investment. iBuyers consider many factors before agreeing to buy your home.
Below are several examples:
iBuyers always look at market conditions and comps before giving you an offer. If you want a number that’s considerably higher than the iBuyer’s offer, you should list your home for sale. However, if your house needs major repairs, your house won’t qualify for a traditional mortgage loan.
Some iBuyers might not like your house as much if it has many unique features that make estimating an offer difficult. If your home features require permitting, renovation, or complete demo, this will add to their cost estimates. Higher costs, the cost to purchase your home, closing costs, and the after-repair market value will affect their buying decision. If your home needs more than cosmetic touch-ups, an iBuyer won’t buy your house and you will have to list your property on the MLS or sell to a real estate investment firm like DFW Professional Home Buyers.
Most iBuyers in Texas will not purchase condos. Part of the reason is the fact that condo boards have to approve the buyer, which can be difficult. Even if they do, they will still want to dictate the price at which you will sell the condo, and it can be way higher than what the iBuyer is offering. Also, the approval process can take up to six months, which can be extremely inconvenient for an iBuyer who wanted to sell the property in two months.
Most iBuyers are reluctant to purchase homes that are too old. An older home could have lead, asbestos, old electrical, plumbing, HVAC that require complete renovation. An older home can also mean the need for permitting in order to get the house up to current code standards. A house that’s fairly new in a community that’s still building new homes is usually not attractive to an investor that intends to sell the home because they would be competing with builders that offer competitive prices for new inventory.