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.