Real Estate Investors vs. iBuyers in Portland, OR
Have you heard of the new real estate technology trend referred to as “iBuying”?
Companies like Zillow, Opendoor, and even Redfin have launched new services in the real estate investment space, using technology to make “instant” offers on your home.
There’s a lot of hype surrounding this new wave of online real estate investment services, which have been dubbed “iBuyers.” Taken at face value, it sounds interesting. But if you’re a Portland homeowner looking to sell, do your due diligence. Make sure you understand all the fine print before considering this route.
What is an iBuyer
An iBuyer is the catchall term used for online real estate investors. Using an automated valuation model (AVM) and other tech, these companies are focused on making cash offers quickly.
This tech-oriented concept relies on home sellers…
- Feeling comfortable with selling their home online to a large company
- Trusting that the company is presenting a fair offer
These transactions may even occur without any representative ever coming to look at the house.
iBuyers in Portland
iBuyer companies have slowly been expanding and testing services in cities throughout the US, including Portland, for a few years.
The most well-known companies in this space include Opendoor, Offerpad, Redfin Now, and most recently, Zillow Instant Offers. Others have started in select cities with plans to expand over time, like Opendoor and Offerpad.
Each of these companies approaches the iBuyer concept a bit differently. For example, Offerpad, Opendoor, and Redfin Now give instant offers but charge a 7-10% transaction fee, plus closing costs. Others require in-depth inspections and may request certain repairs on the home before they’ll buy it.
Comparing iBuyers vs. Real Estate Investors
|Columbia Redevelopment (Local Real Estate Investor)||Opendoor||Offerpad||Zillow Instant Offers||Redfin Now|
|Fees||None||6-14%||6-10%||Yes (percentage not available)||7%|
|Earnest Money Deposit from Buyer||$10,000||No||No||No||No|
|Closing Time||You pick! We can close in 2-3 days if necessary.||10-60 days, you pick.||Varies by city, 8 day minimum.||You pick, 7 day minimum.||7-60 days, you pick.|
|Showings||Just 1. No need to tidy up ahead of time.||No||No||Yes. A Zillow evaluator will complete a 2-hour walkthrough.||Yes. A Redfin Now representative will come to look at your house.|
|Repairs||None||Repair costs deducted from sale price.||Repair costs deducted from sale price.||Repair costs deducted from sale price.||Repair costs deducted from sale price.|
|Inspection||No||Yes||Yes||Yes. All utilities must be on during inspection.||Yes. All utilities must be on during inspection.|
|Offer Price||Competitive with local market.||Typically lower than what you’ll get from independent cash buyers.||Typically lower than what you’ll get from independent cash buyers.||Typically lower than what you’ll get from independent cash buyers.||Typically lower than what you’ll get from independent cash buyers.|
Is selling your house to an iBuyer worth it?
Beyond the factors compared above, each iBuyer has other fine print details that may affect the process — from specific guidelines on the type of homes they’ll buy to how they calculate the offer.
Most services will offer online and telephone support. However, it’s up to you to do your own research and ask lots of questions to ensure you fully understand what you’re getting into.
If selling quickly for cash is your goal, working with a local real estate investor is the simple and tried-and-true path.
Portland Homesellers Trust Columbia Redevelopment
Greg & Laura’s work is absolutely breathtaking!! They put their heart and soul into their business and it really shows.
— Bella Richardson
Step 1: Get in Touch with Us
Call us or fill out an online form. We’ll discuss your property, why you want to sell, and answer any questions you have about our process. We’ll also set up a time to visit your home.
Step 2: We’ll Visit Your Home
Greg or another member of our team will meet with you at the property. We’ll do a walkthrough of the home to get an idea of its potential. Questions? We’re happy to keep chatting about the process and clear up any concerns.
Step 3: Receive Your Cash Offer
Within 24 hours of the visit, we’ll send you our cash offer. There’s no obligation to accept, but if you do, we’ll draft sales documents for your review. Once the paperwork is completed, we’ll deposit earnest money with Fidelity National Title Co in your account.
Step 4: Choose Your Closing Date
Only one step left — choosing the date you want to close. We can close in as little as 2-3 days. When closing day arrives, the title company will transfer the sales proceeds to your account. There are never any closing fees, hidden costs, or agent commissions!