Ibuyers, What Are They?
iBuyers, what are they? Stick around and I'll share with you what they are. Hey everybody, Jon Sump again here. This is our Tuesday tip of the week. And today, I want to talk to you about something called iBuyers. I don't know if you've heard of them or not, but if you haven't, I'm sure you will or you probably have and don't even realize it. iBuyers are companies out there like Opendoor, Perch, Offerpad, even Zillow and Redfin, that are getting involved in buying homes directly from the homeowner through these big corporations. And what they're doing is they're coming across as if realtors are all bad people and they're just out to get your money and this horrible word called commission.
Well, I want to go over with you and you're going to see this chart here, and go over an actual transaction that's recently taken place via a friend of a friend that I know of. And basically, when you're looking at these people and then you got to be careful of the wording you're using. So if you take a look at this, the house was valued at $360. The iBuyer company offered the seller $330. The seller accepted. But then, instead of charging them a commission fee, like a realtor would, of 5% or 6%, they actually charged the homeowner a 7.5% transaction fee. Not a commission, a transaction fee. They also wanted to charge them, where the seller had to pay for all escrow fees, title fees. And there's something called a disclosure fee of $5,000, and pay the buyer a $5,000 repair fee. And the bottom line is if you look here, we'll try to zoom this in for you, but if you look here, it will end up losing $65,000 compared to what they would've gotten going with a realtor.
You look at this next slide here, I'm just going to go right to the bottom line. They would've netted $337, not sold it for the top price for $330. They would have netted for $337, which is I mean, just not including the low-ball part of it, winds up putting $42,000 more in the homeowner's pocket. Don't be fooled by these companies out there. They're not trying to help anyone. Big corporations are never out to help the little guy. These are for specifically people that if you happen to be in a big rush and you got to sell your house really fast and you got to move next week, I get it. Still, you should call a realtor because we have people that will pay cash for your house like that and still get you a much better price.
So anyways, just be careful when you're out there looking at these people. And then, thinking about selling your house, be careful of these iBuyers. Let a realtor look it over for you to make sure you're not being taken advantage of. Any questions, please feel free to call me as always. Please like and share below if you liked it. And as always, make it a great day.