A new study shows that iBuyers, or instant homebuying companies, can be significantly more expensive than traditional real estate agents, Forbes reports.
According to research from real estate data firm Collateral Analytics, iBuyer options cost more in fees and result in a lower-priced sale than properties sold by traditional agents. In all, the report shows that iBuyers cost home sellers about 13% to 15% of a home’s sale price, while agents cost just 5% to 7%. That’s a difference of up to $20,000 on a $200,000 home.
Another recent study by MarketWatch had similar—though, even more drastic—results. According to its findings, iBuyer sales netted owners 11% less than if they’d sold on the open market.
Still, whether the premium is as high as the studies say or not—data shows sellers are willing to pay it. RedfinNow—the iBuying arm of real estate brokerage Redfin—generated $39.9 million in revenues last quarter, marking a 343% jump in just one year. And that’s just one of nearly a dozen iBuying options that are out there.
Advertisement
Related Stories
Sales
Sales and Texting? Know the Rules
Texting your sales prospects en masse can be an efficient way to get your message through if you follow these best practices
Affordability
Will NAR's Landmark Commissions Settlement Lower Housing Costs?
The $418 million deal changes long-standing rules—written and unwritten—that consumers claim inflated sales commissions for home sellers, including new-home builders
Market Data + Trends
January's Mortgage Rate Dip Prompts Some Thawing of the Housing Market
A drop in mortgage rates from recent peaks nudged more homebuyers and sellers into the market, signaling the start of greater supply and demand
