Click Here for an Instant Evaluation. Keep in mind this cannot be compared with a professional CMA (Comparative Market Analysis). Algorithms can only be so accurate, that’s why they typically use ranges in the tens of 1,000’s.
The PJG iBuyer Consultant program is a service we provide to help advice on how to PROTECT your hard-earned equity. Sometimes a quick and convenient sale is imperative, so we have many options to achieve your goals, but before you go the iBuyer route make sure you think about a few things…
- Why are you considering a quick sale solution?
- Do you understand the real cost?
- Are you aware there could be a better solution?
- If we had a way for you to purchase your dream home without having to dump your current home and avoid an iBuyer sale would you be interested?
- If we also had MULTIPLE CASH OFFERS SOMETIMES IN A FEW HOURS as a back up would that make you feel better? Through our eXpress offers, we will have MULTIPLE INSTITUTIONAL BUYERS!
WE HAVE AN OPTION FOR EVERYONE!!!
Contact us today and let us show you our FLEXIBLE RATE STRUCTURE with our Flexit platform. We offer multiple options to help protect your equity or allowing you to sell quickly!
I want to first say I don’t believe all iBuyer programs are bad for the consumer, the agent, or the industry because it serves a purpose, but often it’s not the best result for your equity and too many people are using it for the wrong reasons. iBuyer should be called iInvestor or iWholesale because based on what I’ve experienced, researched, and heard from others those would be more accurate names. I strongly believe based on my research, too many sellers are using the program for the wrong reasons and are not getting the proper advice. Here is an unbiased Forbes article explaining the process.
The Phillip Johnson Group offers an iBuyer Program, but it’s different than the others. eXpress Offers allow eXp agents exclusive access to a platform where a Marketplace of Buyers provides you with the chance for multiple CASH offers in a manner of hours. Many of these investors have different motivations to purchase, some will buy to rent the home while others will purchase to resale, but all must be approved by eXp Realty, assuring dependable and timely closings. At PJG, we also have a NETWORK of local investors looking to purchase properties for cash.
I’m convinced based on my research and over 20 years of experience helping my clients MAXIMIZE their equity we can give you good advice on your situation and help guide you in making the best-informed decision. We can also refer you to other iBuyer platforms. Our goal is to make sure you know all iBuyers aren’t equal and it will require a one on one discussion with a real market analysis.
Here are the most important questions
and points you need to understand…
- What do you know about the various iBuyer programs? It’s important to know there are several iBuyer programs out there but ultimately their goal is to make a profit like any other sustainable business model. They purchase your home at a discount in order to resale for a profit while tacking “fees” on the backend to ensure a return to their investors. Some are far more generous than others but the motive is the same… Profit! Convenience isn’t free!
- Did you know many iBuyer offers are based on an algorithm? As mentioned before, you need to live in an extremely cookie-cutter area or it’s nearly impossible to accurately price a home using an algorithm. Zillow offers a million-dollar prize for someone to create an accurate calculation but clearly, that didn’t work. It’s simply a guide but pricing homes properly require seasoned experts. We have many examples of recorded sales from these programs far less than what we could’ve sold the same homes for and that wasn’t included in their fees (Fees usually run from 7 to 10% on top over less than market value offer). Zillow, for example, has an algorithm called “Zestimate”, have you ever seen the ZestAccuracy reports? In Wake County(6/01/19) based on their own data, 76% of the time they’re within 5% accuracy, 88% they’re within 10%, and 91.4% within 20%. So 24% of their time they are off by more than 5%! Wake County is much better than most areas in the USA! Consider this…If they’re 3% off on the price you may have just paid for a huge portion of your commission with PJG not counting their offer is already lower than the market plus their fees.
- Did you know they will do a home inspection? This could lead to a price adjustment when you could’ve negotiated those repairs with your buyer and often sold “as is” or with a minor repair cost. (see below for example)
This image was taken from this article on MarketWatch called Selling your home to an iBuyer could cost you Thousands – here’s why
As you can see, in this example a home sold for $211,100 that showed a net loss of $5,400 simply for convenience. For a $200,000 home that’s a lot to leave on the table. This price range in Raleigh is extremely competitive and predictable. That’s why iBuyers companies are coming into this area! This is why I started iBuyer Consultant. What could a homeowner do with over 5k of additional money? That could help on your next down payment, a new fence, or pay off a car! In this case, the Opendoor fee was only 5.6% which is low in a lot of cases.
NOTE: When you look at public records the purchase price from an iBuyer doesn’t reflect the fees charged which can be higher than 10%!
Another recent study brought this headline and study to Inman News…
Is convenience the main reason for considering such a program? Usually, convenience is the ONLY reason to sacrifice equity. Please consider the MANY factors that come into play when “convenience” is the driving force. iBuyer Consultant offers THREE POINTS TO CONSIDER…
- You lose the ability to test the market. iBuyer companies are smart…They targeted certain markets for a reason. The price points, home characteristics, and locations are always considered in any iBuyer Program. Typically the homes that sell the fastest and often could result in MULTIPLE OFFERS by allowing us to list. We recently sold a 140k TH for 10k over asking price with multiple offers. We sold an inside beltline home for a record cost per SF and NO iBuyer program would’ve touched it.
- If multiple offers come into play, higher due diligence nonrefundable money is usually in play. This tactic brings more leverage to the seller, allowing for better negotiating in repairs (if any at all). Often they will purchase “as is”!
- Closing convenience! Rarely in a low inventory market are buyers not willing to accommodate your closing date, along with a large due diligence sum the closing is more than likely going to happen, ensuring you a smooth transition to your new home. The potential savings of thousands could do wonders in providing you the ability to plan for your next move.
This image below was taken from TMLS on 6/11/2019. This is the # of days on market data from a well known iBuyer company. Now consider after they’ve already purchased your home for a reduced price(for your convenience), then activated in MLS, took a few photos (usually with minimal information/remarks and rarely with room dimensions) and marked the price so they could generate a profit, it still ONLY took them an average of 42 days and a median of 21 days to sell the home.
EXAMPLE: In doing research, I’ve seen a transaction where an iBuyer company purchased an unlisted home for $248,000 (not counting closing fees and possible repair concessions). They then put the home back up for $265,000 in the same month and same neighborhood. A similar home but 300 square feet smaller was listed for $250,000. That home sold for $260,000 by a traditional broker in 3 days!
What can we do to help?
- As licensed REALTORS our #1 priority is your best interest. As iBuyer Consultants, we can help advise you through your iBuying options. I hope we can convince you to list with us by seeing the advantages of our professional services.
- We might already have a buyer ready to make an offer! Through my network of agents, maybe even cash!
- If you cannot show the home easily we have solutions. Do you have pets, or a baby or an elderly parent and dread dealing with the process? We have solutions!
- Does the home need cleaning, organizing, painting, staging or a complete remodel? There is a solution! We have a long list of vetted vendors waiting to help.
- We can offer an aggressive commission structured based on the plan “flex” plan you choose. Are you purchasing another home? Are you a past client? Maybe a referral from a past client? Can we get a referral from an agent outside of the area you’re relocating to? We are fair and provide nothing but a 5-star service!
Contact us for an appointment!