iBuying Is Here to Stay in Dallas/Fort Worth
From trading securities to purchasing a car and even selling a house, there are few things in our increasingly digital world that can’t be done online, but that doesn’t mean it’s right for everyone. In fact, more often than not it’s still best to work with an agent right here in Dallas/Fort Worth, but there are ways iBuying can be used to an agent’s advantage.
If you’re not familiar with iBuying, it’s kind of like selling your car to a dealership only instead of a vehicle, it’s a house. The iBuyer uses algorithms that consider age, location, and market value to make an instant cash offer, usually for much less than what an agent would be able to fetch.
iBuying Companies in Dallas/Fort Worth
Considering its novelty, iBuying isn’t available everywhere, and Dallas/Fort Worth is among only a handful of cities that now allow the practice. Some of the most well-known companies include:
The Advantages and Disadvantages of iBuying
The advantage of iBuying is that it provides sellers an instant offer that they can either accept or reject. That’s helpful for those who need things to happen fast, such as in the case of a member of the armed forces whose deployment date came a lot sooner than they anticipated, or a client whose personal situation has changed and they need to move quickly. However, it’s not without its drawbacks, which is why the first step to using iBuying to your advantage is simple: educate prospective buyers.
- Instant offers that are guaranteed
- No need for showings or open houses
- Predictable purchase timeline
- Lower transaction fees
- Not every house will qualify (oftentimes it must be a newer home in a certain location and in a certain price range)
- Impersonal online transaction platforms
- No chance of a bidding war if a property is in a hot location
- Lower offers overall
While these companies are quick to point out that fees are less than in a traditional transaction, so are the offers on the home so it’s not necessarily a “better deal.” Rather, iBuying should only be used when the client needs to move extremely quickly or is willing to take a major loss for convenience. Otherwise the traditional way, even if it takes 70 or so days for the house to sell, is generally a better call.
The next way to take advantage of iBuying in Dallas/Fort Worth is to build a digital advertising campaign prospecting those who’ve been rejected by iBuying services. Now, it doesn’t mean that houses that were rejected by iBuyers aren’t desirable, it’s just that the FDIC requires an appraisal on real estate transactions over $400,000, which adds an extra step and more cost to the process - so that big Highland Park mansion built in 1927 isn’t likely to receive an offer from an iBuyer. Instead, they opt for “easily resellable” homes more than anything. For more in depth information on the FDIC and its regulations pertaining to real estate transactions, visit them online.
Additionally, iBuyers also typically don’t provide offers on older homes so if part of your niche is flippers or historic properties, you’re covered.
Lastly, stress the fact that you will personally take your clients from selling their current home to helping them find a new one. The more that things become digitized and compete for our attention, the further a personalized human touch can go.
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