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What is an iBuyer and Should You Work With One in Michigan?

One question we hear from many of our clients is “what is an iBuyer?” In this post, we shed some light on the subject to help you determine if you should work with one or not! 

iBuyers are the latest trend in the real estate world.

While their services allow you to quickly sell your house, you may end up receiving far less than had you sold in a different manner. Once you factor in all of their fees, the amount you receive will be even less.

Below, we offer answers to some of the most frequently asked questions we hear from homeowners who want to sell a house fast in Michigan. These individuals are curious whether they should:

  • Use an iBuyer
  • Sell directly to a professional home buyer
  • Put their house on the Michigan MLS with a Michigan real estate agent

Keep reading to determine which selling option will work best for you and your unwanted house in Michigan and the surrounding areas!

What is an iBuyer in Michigan?

An iBuyer is a company that purchases properties sight unseen, often for much less than retail.

There are many major companies getting involved with iBuying, and that’s quickly changing how houses are bought and sold. iBuyers utilize technology to make you an offer for your house almost instantly.

After all, the “i” in iBuyer stands for “instant.” They can simplify the home selling process which is very appealing for people who need to sell a house fast in Michigan.

However, working with an iBuyer in Michigan can come with some serious drawbacks. For one, you will likely receive much less for your house, not to mention all of the costs and fees. In many cases, home sellers will miss out on thousands of dollars which usually isn’t worth it.

Working with an agent or a professional home buyer such as Cash for Michigan Houses will help you to save time and money on the home selling process. Our offers are fast, easy, and always fair!

How Do iBuyers Determine their Offers?

Typically, when working with an iBuyer offers made are pretty general.

Of course, some property attributes will be calculated into the offer, but otherwise, the offer is often based on geography and the size of your house. Agents and property buyers use what is called a comparative market analysis which incorporates the data of recently sold homes in your area to determine what your house is currently worth.

Michigan iBuyers use what is called an automated valuation model, or AVM, which is similar to a CMA. But, it uses technology to evaluate the property as opposed to a real live person running the numbers. A lot can be missed using this process and home sellers aren’t typically able to negotiate with iBuyers.

In many cases, the iBuyers offer simply takes it or leaves it.

Does Their Process Work?

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The process is pretty simple, but keep in mind that you get what you pay for.

First, you submit the details of your property. The computer will run a few numbers, quickly spitting out an offer for you. It can be difficult for a computer to accurately calculate all of the attributes of your home, leaving you with a standard price that will be used for many properties in your area.

The process can work for some home sellers in Michigan, however, working with an agent or a professional buyer will likely get you more cash for your house.

What Do They Charge?

The costs of working with an iBuyer can be pretty hefty! According to Marketwatch, an iBuyer will charge up to 11.5% in commissions and fees. That is just about double what an average agent will charge you in commissions, plus your offer will typically be much lower than what you would be able to get on the MLS.

If you need to sell your house fast, for a great price, without any cost whatsoever, Cash for Michigan Houses will buy your house outright.

How is Cash for Michigan Houses So Different?

At Cash for Michigan Houses, we work with local Michigan home sellers, helping them to reach all of their selling goals.

We purchase houses directly, always for fair and honest prices. We handle all of the details and will close on the property at your convenience, we are typically ready to go in only about 7 days. When you work with our team at Cash for Michigan Houses, you won’t have to worry about expensive fees or hidden charges.

Our process is fast, simple, and will help you with any unwanted property in the Michigan area. Don’t agree to sell to an iBuyer in Michigan until you learn more about the services we can offer you!

What is an iBuyer and is it right for you? If you need to sell your house in Michigan, we can help you find out! Reach out to us today for more information!

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