iBuying, Wholesaling & Flipping Oh My!
iBuying, Wholesaling & Flipping Oh My!
Is this the look you get trying to figure out the best way to sell your house? Now more than ever, we are in a time of information overload, and If you are an analyst by nature (We're looking in the mirror too), you know it's overwhelming, to say the least, trying to make the right decision.
What is right for you could be entirely wrong for someone else. What causes one person stress and anxiety is a piece of cake for others. We have learned in the thousands of transactions we've been a part of that there isn't a pretty box that everyone fits in, each house sale has its unique set of hurdles, and we are here to coach you to make the best choice for your needs.
WHAT ARE YOUR CHOICES?
The term may be new to you, but the concept has been around for ages. Essentially, iBuyers are entities or investors who aim to make the home selling process as easy as possible. They are all-cash buyers, who often take the house in "as is" condition, with "service fee's vs. commissions, and allow the sellers to obtain their proceeds quickly as opposed to waiting around for that perfect offer and all the problems that can occur with a traditional home sale.
Once again, we aren't talking about a new concept, only a rebranded title. Wholesalers were once called bird doggers because they scouted properties for investors to purchase. They tend to be unlicensed sales facilitators, who once again offer the ability to purchase your home in "as-is" condition, quickly, and hassle-free. Once in contract, they immediately resell it to an investor with a markup, or what they would deem a "finders or acquisition fee." This has become extremely profitable to this group of individuals, as no license is required for their "advice." No upfront capital is required to purchase the property since they are immediately reselling it. Therefore it has allowed for an extremely easy barrier for many to start this process.
The last decade (2010-2020) has brought a plethora of home flipping shows to the market. It's revolutionized how people design their homes and the expectations that buyers now expect when purchasing a property. Flippers realizing that a beautiful end product equates to more profit tend to find the ugly, deferred, dated, or troubled properties and make below-market offers based on the conditions mentioned above.
Traditional Real Estate Agents
Selling your home the traditional way, i.e., through an agent, isn't going away. In fact, we will be the first to say that it still could be the best option out there. No algorithm, ibuyer, wholesaler, or flipper can offer the patience, persistence, and accountability to work solely on your behalf, with your best interests in mind better than an honest agent. Agents are great at selling clean, updated homes that show well, with sellers who are flexible and patient while they seek out the perfect buyer to pay the premium expected price. Yes, the costs can be more for using an expert, but if you kept your home clean, updated, and have the time and flexibility on your move dates, then chances are traditional selling methods would make sense.
Is There A Solution Without Cons?
We are glad you asked that question. We believe there is. After years of watching Flippers and Wholesalers buy low and sell high, or iBuyers using their algorithms as justification for their offers, we wanted to find a way to capture all the pros listed above, with none of the cons for specific clients who may fit many of the categories explained above. After a lot of research and analysis of the scenarios above, we can officially offer you a hybrid model.
What Is A Hybrid Model?
A hybrid model offers the best of both worlds. You get a personalized data-driven valuation from a professional Realtor. At the same time, you have the option of a convenient ibuying solution to remove the stress of the unknown sale, the hassle of multiple showings, or the anxiety of potential repairs needed.
Our BayBrook Realtors love evaluating properties to find the solution that will maximize your profit. After listening to your goals regarding the property, we can offer a best-case retail sales solution, along with an expected time-frame including the potential costs associated with a traditional sale. Wait! Didn't you just list a whole bunch of cons regarding unknowingly leaving money on the table using an ibuyer? As a matter of fact, yes, we did. But we haven't gotten to the best part yet. We've partnered with an iBuyer company called FlipSplit that removes the selling uncertainty above, and while we are careful with our recommendations, Flipsplit has our trust.
FlipSplit was created to offer sellers a quick and convenient, completely transparent, and personalized option to sell their home with built-in validation to ensure the highest offer possible is presented. Not only that, FlipSplit is the only company that offers a profit share guarantee if the after rehab selling options are exceeded. We know that is a lot of information in a couple of short paragraphs, but luckily we are here to help answer your questions and lead you on the right path so you can make the perfect decision.
While it may not be for everyone, it certainly is worth a quick call to see if our hybrid method is the missing piece that will take your home selling burdens away. Feel free to schedule a no-obligation consultation to see how we can serve you. Sincerely, Brandon Brown / Broker