Are you wondering if you should sell your home to OpenDoor, Zillow? If so, watch this video to get some information on these companies and the other iBuyer Platforms out there!
Hey guys. Hey, we're here today to answer your questions and today the question is, should you sell your home to Opendoor or Zillow offers?
Hey, my name is Justin Short. I'm a real estate agent here with RE/MAX Real Pros and we want to make sure we answer your questions today and keep you educated on what's going on out there in the real estate market. So let's go ahead and get into it. So by now, you've probably seen these companies, you've heard of these companies, you're kind of curious what they're all about. They're spending a lot of money on advertising. They're putting their name out there. So there are many companies out there. They could be Opendoor, it could be Zillow Offers, it could be Offer Now. There are many of these different companies that they're considered iBuyers. So what they are, they are investors, they are cash buyers. They're going to come in and buy your home cash as-is. You don't have to do anything. You don't have to do any repairs.
You just sit there. You'll be able to sign the paper and be able to move on. So there are some definite pluses that they're going to advertise. You're going to see they're going to have flexible closing dates. So you can close typically anywhere between the next two weeks, so the next 14 days, to the next 90 days. So you have a lot of flexibility as a home seller. They're also cash buyers, so you're not getting financing. You don't have to worry about dealing with banks, things like that, and then you also don't have to worry about showings and putting it on the traditional market. So people aren't kicking you out at dinner time to come to take a look at your home. You don't have to worry about open houses, all that. Although those are pluses, I really think there are a lot more negatives to dealing with an iBuyer.
The cons of selling a home to Zillow Offers or Opendoor is really it's the amount of money that you're going to put in your pocket. So a lot of people don't realize this because they're not keeping up on where home values are, what their real, true worth is to their home, how much equity they have, but with the way it works is you'll get an offer from a company. Let's say your home's worth $400,000 right? And they'll come in and they'll say, "Hey, we're, we're a big company. We're going to come in. We'll pay $385,000 for it right off the bat." Right? So you as a homeowner, you may say, "Hey, to give up 10, 15 grand of equity, that may make sense. I don't have to deal with showings, I don't have to deal with agents coming in."
All that type of stuff could be a great option for you, but there's a lot of fine print. So once you get that offer, you've got to read the fine print at the bottom. They're going to have big fees. So they're going to have on top of that low offer, they're going to have typically an 8% service fee. Then once you come down to home inspection time, they're going to charge you a certain amount of money for repairs. From what I've seen, those are anywhere from 10 to $15,000 depending on the home and that adds up pretty quickly.
So as you're going through it, most sellers they are looking at, they're going to net anywhere between 30 to $40,000 less by using one of those big companies. So yes, you have the convenience. If you're not worried about saving the money and maximizing the equity, it could be a good option. But most people, your home is your biggest investment. You're not going to be willing to do that and you really want to get the most money you can by putting it out there on the open market. So if you guys have any other questions, you can feel free to reach out and hopefully, you found this helpful!