Should You Use iBuyers to sell your home in Arizona? The Pros and Cons

The real estate market in Arizona has seen significant changes over the years, and one of the most notable developments is the rise of iBuyers. With Arizona flying under the radar until recent years, with lower priced homes than most major cities, ibuyers have found a lot of opportunity in the Phoenix Metro Area.  Though not as prevelant as in recent years, with the prices of real estate having increased, there are still properties that are sold to iBuyers. These tech-driven companies offer homeowners a quick and convenient way to sell their properties. But is this the best option for you? Let's delve into the pros and cons of using iBuyers in Arizona and see how their offers compare to traditional home sales.

The Rise of iBuyers

iBuyers, or instant buyers, are companies that use technology to make near-instant cash offers on homes. Some of the most well-known iBuyers include Opendoor, Offerpad, and Zillow Offers. These companies have become increasingly popular in Arizona due to their promise of speed and convenience. But what exactly do they offer, and how do they stack up against traditional real estate transactions?

Pros of Using iBuyers

1. Speed and Convenience: One of the biggest advantages of using an iBuyer is the speed at which you can sell your home. Traditional home sales can take months from listing to closing, but with an iBuyer, you could receive an offer within 24-48 hours and close in as little as a week.

2. Certainty: When you accept an offer from an iBuyer, you eliminate many uncertainties associated with traditional sales. There’s no need to worry about buyer financing falling through or last-minute negotiations.

3. No Need for Repairs: Most iBuyers purchase homes "as-is," which means you won't need to invest time or money into repairs or staging your home for showings.

4. Flexible Closing Dates: Many iBuyers offer flexible closing dates, allowing you to choose a timeline that works best for your move.

Cons of Using iBuyers

1. Lower Offers: The convenience of selling to an iBuyer often comes at a cost. Typically, offers from iBuyers are lower than what you might receive through a traditional sale. This is because iBuyers factor in their own costs and profit margins.

2. Fees: While traditional real estate agents charge commissions (usually around 5-6%), iBuyers also charge service fees that can range from 6% to 10%. This can eat into your final sale proceeds.

3. Market Limitations: Not all homes are eligible for purchase by iBuyers. They tend to focus on properties that fit specific criteria, such as location, price range, and condition.

4. Lack of Personal Touch: Selling through an iBuyer is a more transactional process compared to working with a local real estate agent who can provide personalized advice and support throughout the sale.

Selling in Arizona: Traditional vs. iBuyer Offers

When comparing offers from iBuyers with those from traditional buyers in Arizona, several factors come into play:

Market Conditions: In a hot seller's market like Phoenix or Scottsdale, you might receive multiple offers above asking price through traditional methods.

Home Condition: If your home is in excellent condition and located in a desirable neighborhood, traditional buyers might be willing to pay more than an iBuyer.

Time Constraints: If you need to sell quickly due to relocation or financial reasons, the speed of an iBuyer could outweigh the potential for a higher offer through traditional means.

Conclusion

The decision to use an iBuyer in Arizona ultimately depends on your individual circumstances and priorities. Some Realtors are able to help negotiate and offer representation when working with an iBuyer.  They can gather an offer price for your home, help with the legal paperwork, negotiate and help ensure the process goes smoothly.  iBuyers have become more selective in which properties they are willing to propose an offer on and move forward with in buying the property.  Working with a good realtor can help ensure you find your best options.

If speed and convenience are your top concerns, an iBuyer might be the right choice for you despite potentially lower offers and higher fees. However, if maximizing your sale price is more important and you're willing to navigate the complexities of a traditional sale, working with a real estate agent for a traditional sale could be more beneficial.

As always, it’s wise to weigh all options carefully and consult with a real estate professional before making a decision that will impact one of your most significant financial assets—your home.

-Kendra Dursteler, Real Broker

Real Estate Advisor, Realtor®