iBuyers in New Jersey: iBuyers Compared to Local Home Buyers

iBuyers in New Jersey photo of a house on a computer

What are iBuyers in New Jersey? There’s no denying that technology has changed our world completely, and it only continues to advance rapidly and impact our lives. Do you need a cab to take you from point A to point B? There’s an app for that! An Uber or Lyft will get you to where you need to go.

Do you want to go on a vacation but avoid completely draining your savings account to afford it? Why not book an Airbnb? If you are looking to get some shopping done but can’t find the time to go store to store, you don’t even have to leave your home because you can do it all online.

But what if you want to sell your home? Won’t you have to rely on the lengthy and traditional process of selling your property with the help of a real estate agent?

The short answer is no. The internet is quickly changing the way people can buy and sell homes, and there are many more options available to you today outside of going the traditional route.

You can list your home on various online platforms that guarantee you visibility, but that is not all that’s possible. Over the last decade, a new trend of “iBuyers” has been emerging. Homeowners are no longer limited to having to deal with real estate agents to sell their homes.

The question is, how does an iBuyer compare to a standard homebuyer?

What are iBuyers in New Jersey?

To effectively answer this question, there first has to be some understanding about what exactly an iBuyer is and what they do. For

starters, an iBuyer is completed unrelated to Apple, even though they started the trend of adding an “i” to the beginning of many of their product names.

What the “i” stands for, however, is the instant way in which a bid on your house will be made. An iBuyer is essentially an investor who relies on an extensive amount of data to help them decide which properties to buy. This collection of data is known as an automated valuation model (AVM), which can be used in conjunction with different forms of technology to improve and tailor results.

iBuyers are also companies that will make an offer for your home over the internet, rather than through a real estate agent. Going this route means there is less stress on you in terms of dealing with paperwork or relying on a real estate agent to get you the best possible deal.

With an iBuyer, you would simply request that the individual or company buy your home in the condition that it is in currently. To fulfill this, you may need to fill out a questionnaire on their website and upload photos of your home so that they can assess its condition.

Each type of iBuyer is different. Some will choose to send you an instant offer based on the information that you provide. Others will prefer to perform a home evaluation and even a home inspection to ensure that the home and all of its components are in good working order.

It is through one of these two methods that they can then provide you with an offer. An iBuyer relying only on an automated valuation model (AVM) to help them decide on a home will typically make an immediate offer on the property. The software will evaluate various factors such as location, condition of the house, and the market in your area to determine the best possible deal. However, this does not always mean that it’s the best deal for you.

While some iBuyer companies may rely on home inspections to help them evaluate a home and its value, they may make an offer before the actual inspection. If you choose to accept it, they will then give you an adjusted offer for your property based on the findings from the inspection.

Working with an iBuyer is a very straightforward process, and selling your home to an iBuyer can be a great option if you do not have the time or patience to rely on traditional channels that can take months. No excess paperwork is required, and a deal can be finalized within the week or month, depending on how quickly you’d like to make the sale.

How Does an iBuyer Compare to a Traditional Homebuyer?

Paperwork in a real estate transaction is meant to protect both the buyer and seller from fraudulent activity, uncover any potential debt that may be tied to the property, and address insurance and inspection issues.

While this is an important part of buying a home, paperwork can overly complicate things, especially in an era where the internet has changed the entire landscape. Who honestly wants to deal with a mountain of paperwork when trying to sell their home anyway?

  1. The iBuyer

The ability to find a buyer online with a few clicks of your mouse means that you will have much less footwork and paperwork to deal with. You will also not need to hire a real estate agent to help you put your home on the market, saving you both time and money.

It can take as little as a week from the moment you land on an iBuyer’s website and submit your information to complete a sale. The best part about choosing this option is, you will get paid in cash. Maybe you’ve had an ever-increasing tax obligation or an expensive medical situation, and now this money can help you sort some things out.

It’s essential to keep in mind, though, that the offer you receive may not be the best. The automated valuation model (AVM) and other software used to evaluate your property may potentially come up with a much lower offer than you were expecting or would be willing to accept from the iBuyer.

  1. The Traditional Homebuyer

On the other hand, you have the option to go the route of selling your home to a traditional local homebuyer. This person would have their real estate agent contact your agent to arrange to view the property and submit an offer if they’re interested. A traditional home buyer will typically find your home through an online real estate listing or other publication.

If you choose to work with a local home buyer instead of an iBuyer, you will have to be patient since there will be many time-consuming things to deal with before selling the house. Also, unlike an iBuyer, a traditional home buyer will typically have to turn to a mortgage lender for financial assistance to buy your home, which isn’t always easy.

This process can take anywhere from 60-90 days, and there is still no guarantee that the lender will accept their application. If any issues arise and the application is rejected, the buyer would then be forced to back out of the deal.

This kind of situation is why selling a home through traditional methods can sometimes take months to complete. However, if successful, it’s usually smooth sailing from this point forward, and the sale can be finalized, provided that the inspection report is agreeable to the buyer.

Perhaps the best part about choosing to sell your home to a local buyer is the amount of money you will make. With an iBuyer, the offer they make you will tend to be non-negotiable, and that might not resonate with you. But, with a traditional home buyer, you have the opportunity to negotiate on the price that you’re willing to accept for the home.

Also, an iBuyer isn’t typically looking to buy a home and then put work into it. They are usually looking for properties that are in good to excellent condition, maybe only needing some cosmetic changes, in order to sell them quickly.

We Can Help

A local home buyer may want to purchase your home for different reasons. Even though the house may not be in the best shape, they are more willing to buy a less than perfect home and renovate it because they want to live in a specific area. Since traditional home buyers are more open to purchasing a property that needs some work, you will have a larger pool of potential buyers available to you compared to trying to sell to iBuyers.

Ultimately, deciding whether you should sell your home to an iBuyer or a traditional buyer boils down to your needs and priorities. If you’re willing to sell your home at a discount for the sake of an easy and very speedy process, an iBuyer can be a viable option that’s worth considering. But, if making the highest possible profit from the sale is your main concern, going the traditional route may be your best bet.

If you need to sell your house for cash fast, we can help! At Quick Home Buyers NJ, we provide fair, no-obligation cash offers and lightning-fast closings so that you don’t have to deal with realtors or spend months trying to find and secure a buyer. Click to get a no-obligation cash offer on your home today.