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Read This Before Selling Your House to an iBuyer

February 9, 2022 | Kyle Spearin

Homeowners looking to sell off-market often look to iBuyers. But what if there’s a better option out there for your situation? Explore what Sundae’s Marketplace has to offer.

Are you considering selling your house to an iBuyer?

For many, it serves as a great alternative to selling on the MLS. There are a variety of reasons why homeowners like you are looking at selling to an off-market buyer. Some people are relocating or downsizing for retirement. Others inherited a house and want the speed of selling with an iBuyer. Whatever your reason may be for, the fact of the matter is that you want a hassle-free way to sell your property.

What you might not be aware of is that selling to an iBuyer isn’t necessarily the best option available. To be certain, it’s worth doing some exploratory research. In this article, we compare the iBuying model to Sundae’s Marketplace. That way, you see what other opportunities are available and can make the best decision for your situation.

What is an iBuyer?

iBuyer is a term short for “instant buyer.” As the name implies, companies give owners offers for properties and close quickly.  Though no two iBuying companies operate exactly the same, there are some general commonalities between them. For example, purchasing homes in as-is condition.

When preparing an offer for your home, iBuyers factor in things such as:

  1. The iBuyer fee – This number is subtracted from the total valuation. Different iBuyers have varying fees.
  2. Closing costsTitle, escrow, and other closing expenses are subtracted from the home value to calculate the seller’s net proceeds.
  3. Repair costs – Although you don’t need to make renovations yourself, someone down the line will. As such, this is factored into the offer price. Be sure to note that each company does this differently.

These along with other considerations ultimately determine your offer. 

Get multiple offers with Sundae

When working with an iBuyer, that company will give you one offer. It could be a great offer or a terrible one. How do you know if there’s nothing to compare it to?

Have a higher offer from an iBuyer?

At Sundae, we take a different approach. The selling experience on Sundae’s Marketplace puts you in the driver’s seat. That way, you can evaluate the best outcome for your situation.

We believe that in order to find the best offer, you need to be able to see what’s out there. In a recent interview, Josh Stech, our CEO explained that:

“Having one iBuyer make you one offer is not the way to get the best price. Nor is calling two or three. You need multiple offers. At the same time, you need the convenience that iBuyers offer.”

When you list your home with Sundae, you have an entire network full of local property investors. From there, all interested parties will place offers. Since they are competing with other investors, it’s common for homeowners to receive multiple offers. Then, you can compare all offers to see which appeals to you most.

Sundae has less fees than iBuyers

You can expect to pay fees when you sell your house to an iBuyer. The reason is simple: it’s one of the ways that they make money from a given transaction before reselling the house. As you begin to conduct research, it quickly becomes clear that homeowners pay fees on a host of things. Everything from service fees and repair costs to closing costs and repair fees are commonplace. 

The fees that iBuyers charge cut into your bottom line.  In fact, it’s possible for fee amounts to exceed $50,000. Think about everything you could do with that money at your disposal.

Sundae’s business model, on the other hand, favors the homeowner. To ensure that sellers get the most for their houses, we’ve eliminated extra fees. We don’t charge homeowners service fees or even closing costs. Instead, many of the transaction costs are passed to investors. This leaves more money in the pockets of people like you

Sundae offers full transparency throughout the process

With iBuyers, the price they offer isn’t necessarily the amount you’ll receive. The fees compiled along the way take a dent out of your potential earnings. Let’s say that you receive a $410,000 offer from an iBuyer and $380,000 on Sundae’s Marketplace.

At a glance, the iBuyer option appears to be $30,000 more. When you factor in fees  and other costs along the way though, the net price you’d receive is actually less than working with Sundae.

How can this be possible?

Fees add up. That’s why Sundae does things differently. Sundae works hard to build trust with homeowners. We believe in providing you with full transparency so that you never feel misled or out of the loop. 

Work with us

iBuying appeals to homeowners because of the speed and convenience it offers homeowners. It also comes with high fees and a single offer. Selling off-market doesn’t mean that you have a limited amount of options.  Although working with an iBuyer is one potential solution, you need to consider every option available.

Sundae provides the same benefits as selling to an iBuyer. Along with convenience, we provide homeowners with the opportunity to sell for more by receiving multiple offers. Work with us to get the best outcome for you with transparency every step of the way.

This material is for informational purposes only and has been prepared without regard to your individual circumstances.  This data may not be representative of all transactions on Sundae’s marketplace, as some buyers may submit offers which include different terms as discussed above.  “Net price to seller” does not include, if applicable, any loan or lien payoffs, unpaid and/or prorated property taxes, and/or HOA related fees for which the seller may be required to pay. Additionally, this data may not be representative of all iBuyer transactions and related fees.  The iBuyer fees described above are based on publicly available data.  Not all iBuyers operate in the same way, some houses may need more or less repairs, and thus iBuyer fees may vary. 

 

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How Sundae Came to Be: A Love Story

When Josh Stech met Andrew Swain in late 2014, neither expected the way their relationship would take off. California native Josh and Welsh-born Andrew held leadership roles at their previous company in sales and finance, respectively. Rather than competing as sales and finance co-workers sometimes