Did you know there are several different kinds of local home buyers in Middle Tennessee? The iBuyers are a new option when it comes to selling your home. They provide a quick option if you need to sell as soon as possible, but they are not the only option. There are still traditional local home buyers in Smyrna, Murfreesboro, and Columbia in Middle Tennessee that are financed and able to purchase your home. How does the iBuyer compare to a local Home Buyer in Smyrna or La Vergne?
iBuyers are large wall street companies that buy and sell real estate through technologies. They felt the need to simplify and streamline the real estate transaction process, basically eliminating the real estate licensee. The iBuyers provide a platform to buy directly from homeowners and sell to buyers directly. These companies are looking for properties in very good condition with very minimal or no repairs to make. If the property does need repair, they will often offer less for the house, or require the seller to make the repairs themselves before closing.
iBuyers are focused on higher volume and less profit per unit. As of right now, iBuyers are not active in all areas; they tend to focus on very active areas with property values around $250,000 and in neighborhoods that have little to no HOA fees.
Who Are The iBuyers?
The big name in iBuyers and who really originated this concept is Opendoor. Opendoor does a heavy media campaign with TV, radio, and direct mail. A new iBuyer to the scene is Zillow’s Make an Offer program. It’s interesting as soon as this new plan came out, Zillow Zestimates dropped on average 15%. Zillow Zestimates are never correct anyway, always thousands too high or too low.
I remember one property I sold as a Realtor for a client in Green Hills the Zillow Zestimate was $119,000 and I sold the condo for around $220,000. A short time later Zillow corrected their Zestimate to $220,000 only to lower it back to $119,000 six months later! Zillow picks these properties up cheaply and then sells them to wall street hedge funds in bulk. Other newcomers to the iBuyer world are Offerpad, Knock, and Refin Now.
Selling Your Property Through An iBuyer
As a property owner, you need to know how an iBuyer compares to a local home buyer or real estate investor in Nolensville, Shelbyville or Columba, Tennessee when you decide it’s time to sell your property.
Through an iBuyers platform, property owners can request an offer from the company. The owner fills out information about the property and will disclose any known issues or recent upgrades. If the property meets the company’s initial criteria, the platform then runs an evaluation on the subject property. The iBuyer will typically provide a cash offer within 24 – 48 hours of the request. After the owner accepts the offer, the iBuyer will usually send out an inspector to verify the status of the property. If any repairs need to be made, they will either request the seller to fix them or deduct the repair cost plus a fee from the offer. When the repairs are settled, the owner then picks the close date.
Selling Your Property To A Local Home Buyer
A local home buyer in Columbia or Nolensville will generally use a real estate agent. This means the local home buyer will be most likely to find your property through the multiple listing service, or MLS of the area. The buyer’s agent would then present the offer contract to the selling agent, or seller directly as a For Sale by Owner if they are not using an agent. If the seller accepts the offer, the buyer will usually hire an inspector to make sure there are not any hidden surprises.
If you’re lucky, the buyer will purchase your home with all cash; however, about 90% of the home buyers need financing which can take 30-90 days, depending on the lender. This point in the process is where some buyers are forced to withdraw their offer because of financing issues. If they make it past this point and the inspection comes back agreeable, then the closing occurs according to the contract.
Local Home Buyer in Columbia
Local home buyers that do not use real estate agents are usually investors or direct buyers. Working with these buyers will have aspects of iBuyers and buyers with real estate agents as well. They tend to make all-cash offers with quick acceptance time frames but have inspection tendencies like local home buyers that work with real estate agents. They will most likely hire an inspector and request a price reduction for repairs needed. Some investors may need some time to inspect the property or to secure financing.
The local cash home buyers tend to close quickly since they are not waiting for financing. Do keep in mind local cash buyers are small family-run businesses. The iBuyers are large Wall Street-driven companies based in California, Seattle, Arizona, and Atlanta. Who would you rather work with, a large corporation or a small local company that understands where you are coming from? We have written an article you may want to read “How to Sell Your Home Quickly.“
Southern Homes Investments
Southern Homes Investments is a local real estate home buyer or investor based in the Nashville area. We buy homes throughout Middle Tennessee with cash and can close as quickly as 7 days or whenever you want to close. We also help many homeowners out of very difficult situations including divorce, illness, bankruptcy, fixer-uppers, and pre-foreclosure. If you need to sell your house quickly and not worry about any repairs, please contact us. We would like to speak to you about your home. If you would like to read more about our company, please visit us online at SouthernHomesInvestments.com.
For more information on how an iBuyer compares to a local home buyer in Columbia, Shelbyville, Murfreesboro, Nolensville, Smyrna, or La Vergne, Tennessee, please call Southern Homes Investments at 615-500-4466 or send us a message!
Disclaimer: David Wright is a licensed real estate agent in Tennessee and this article is not a solicitation to list your house.