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Survey: 2 of 3 homeowners think they’d make less money using an iBuyer – but they’d consider an iBuyer if it makes home selling faster and easier.

NEW YORK – Sixty-six percent of homeowners recently surveyed say they don’t believe iBuyers yield higher sales prices than traditional sales. However, a nearly equal number say they would consider using an iBuyer due to the flexible options for selling, according to a new survey from Clever Real Estate finds.

The number of iBuyer companies and services has grown over the last few years. They offer buyers the ability to sell their house quickly with an instant cash offer and set a convenient closing date.

While survey respondents mostly said they don’t believe iBuyers offer more at closing, they said they would be willing to accept an average of $45,400 less for their home in order to sell it instantly and choose their closing date, the survey finds.

But three out of four (72%) of homeowners still want to work with a real estate agent when requesting offers from iBuyers. As a result, some brokerages have added iBuying arms, such as Keller Offers, RedfinNow, RealSure and others, to their companies to empower agents to guide instant-offer transactions.

Overall, 65% of homeowners would consider selling their home to an iBuyer. Millennial respondents were more open to the idea (72%) versus baby boomers (52%).

Still, iBuyers make up a relatively small share of the market. Even though the iBuyer real estate model is nearly a decade old, only 27% of about 1,000 homeowners surveyed by Clever Real Estate could correctly define what an iBuyer is. The sales strategy is still relatively uncommon; iBuyers comprised just 1.3% of home sales in 2021.

“The sentiment around iBuyers is complicated because the average American homeowner isn’t completely against them, but also doesn’t know much about them,” the Clever Real Estate survey finds.

What is your general impression of iBuyers?

  • I’m interested, but I’d need to know more information: 36%
  • I think it’s a great option for people selling their home: 36%
  • I wouldn’t trust one of these companies: 17%
  • I don’t think they’re a good idea: 11%

Reservations about a home purchase from a company rather than individual

  • Concerned about being taken advantage of: 42%
  • Poor quality repairs: 33%
  • Inability to negotiate: 32%
  • Home may have been vacant for too long: 28%
  • Lack of personal experience buying a home: 26%
  • A company wouldn’t be able to meet my needs: 25%
  • I wouldn’t know how: 22%
  • I’d rather buy a home from an individual: 22%
  • I wouldn’t have any reservations: 8%
  • Other: 4%

Source: “American Attitudes on iBuyer Companies: 2022 Data,” Clever Real Estate (June 6, 2022)

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Author: kerrys