So, what’s the real deal with iBuyers, such as Open Door, Offer Pad and Zillow?
They’re basically investors that will purchase your house by offering a convenient home-buying process. But, like all conveniences in life, they come with a price tag. Let’s look at the numbers:
If your house is worth $350,000.
|OfferPad – Open Door – Zillow, etc.
Purchase Price: $343,000
– Fee: 12% ($41,000)
$48,000 ($41,000 fees + $7,000 value loss)
Real Estate Agent
Purchase Price: $350,000
– Fees: 6% ($21,000)
So, $48,000 is what these investors will charge you to sell your house, while you’d only pay $21,000 for a real estate agent to sell your house.
That’s a “convenience fee” of $27,000! I’ll help you keep your $27,000.
Spilling the tea:
- On average, these companies will pay you between 1% – 3.5% below market value for your home.
- On average, they charge between 8% – 15% in fees. The fees will be trickled in throughout the transaction with names such as “convenience charges.”
- These companies will do an inspection of your home and often require that you do repairs with their vendors.
Want to find out more about what your home is worth? Give me a call at 252-412-5367.