iBuyer companies, like Opendoor and Offerpod might make the process of selling your house easy and quick, but it comes at a price. Rather than sell your house for what it’s worth like a traditional real estate agency, these companies use algorithms to give you an offer that they know they will make money on. This price difference is their profit, and it isn’t chump change.
In fact, the Redfin CEO says that the vast majority of their instant cash offers through their platform Redfin Now, are all rejected.
But this profit margin isn’t the only thing they’re taking from you. The fees are higher too, a whopping 7% versus the traditional 5%. To put this into perspective, if you are selling a $500,000 house, the standard 5% fee would cost you $25,000, while the 7% fee would be $35,000. That’s $10K of your money that you’re leaving on the table, on top of the already lower price that they’re offering.
On the other side, the right broker will go above and beyond to help you get the highest price for your home. It might not be “instant” as some of these companies claim, but it will be in a timely manner. For further questions about selling your home, feel free to contact Castles Unlimited at 617-964-3300.