What is an iBuyer and how does it facilitate the sale of a property?
An iBuyer, or instant buyer, is a proptech company that purchases residential properties directly from owners rather than acting as an intermediary. Using Automated Valuation Models (AVMs), iBuyers can deliver an initial cash offer within 24 hours and formalise the sale in around seven days, eliminating the need for traditional estate agency listings, property viewings or costly renovations.
What is an iBuyer?
An iBuyer is a Proptech company, i.e. a company that uses technology to improve a service within the real estate sector, in this case, the sale of properties.
How does it work? Well, an iBuyer, or instant buyer, buys homes directly, rather than acting as an intermediary. For these companies, speed is key: for instance, Spanish iBuyer Tiko reported in 2022 that clients receive a first offer for their home within 24 hours and, if accepted, the transaction can be formalised in just 7 days.
The idea of selling a property and being able to get the cash in a few days is, undoubtedly, very attractive to many sellers, compared to the time it takes to sell a house in the traditional way.
iBuyers are here to stay and continue to revolutionise the real estate market; learn how CASAFARI’s tools power faster property transactions for iBuyers.
How does an iBuyer work?
Have you ever heard of the term “Automated Valuation Model”? This is the engine that makes iBuyers work, supported by advanced property valuation and market study software capable of processing thousands of property data points in seconds to calculate their value.
In the case of Tiko, one of the leading iBuyers in Spain, its AVM, which uses big data and artificial intelligence, allows it to make a competitive offer within 24 hours, without the need to visit the property. Its business model is based on obtaining a small margin on a large volume of transactions, which is why it can guarantee objective and market-adjusted offers. This Proptech has established itself as a digital alternative for homeowners looking to sell their property quickly and easily.
How do I sell my house to an iBuyer?
Selling a house in the traditional way can be a real hassle. Having to clean and decorate the house so that buyers can view it, or having to go through long and intense price negotiations, can be reasons enough to hate the process.
With iBuyers, however, this is no longer the case. The process of selling a property is much simpler. The owner only has to fill in an online form with basic information about the property (square metres, year of construction, neighbourhood or district, among others). If the property matches the iBuyer’s requirements, the owner receives a completely free offer in a very short time and has 7 days to accept or reject the offer. If they decide to accept the offer, the iBuyer carries out a technical inspection of the property to ensure that everything is in perfect condition. If this is the case, in just a few days the property transaction can be completed at the notary’s office.
The iBuying model is transforming the real estate market by making it possible for owners to sell a house from a mobile phone.
What are the advantages of selling a property to an iBuyer?
If you are still not sure whether to opt for the services of an iBuyer, here are all the advantages of an iBuyer to help you make up your mind.
- Speed
Selling a house through traditional channels often takes considerable time due to the multiple procedures involved: preparing the house, hosting viewings and finding a buyer. With an iBuyer, the process is faster, allowing sellers to receive an offer without lengthy listing delays.
- Convenience
For some people, selling a house is one of the most stressful processes in life. Relying on an iBuyer, like Tiko, means being able to sell your home from the comfort of your sofa. All the buyer has to do is fill in an online form and, within days, the property is sold.
- No renovations are necessary
Most people fix up their home and make several updates before listing it for sale to increase the value of the property and encourage buyers. iBuyers will judge the house based on the photos and then make an offer, no inspections or renovations are needed. If there are things that need to be fixed, they will reduce the price of the house and fix them themselves before selling it.
- Quick cash
Many times, there are people who find themselves in time-sensitive situations, for example, moving out of town for work and having to sell the house in order to buy another one. The fact that iBuyer offers sellers a cash offer within 24 hours makes the process much easier for them.
As you can see, relying on an iBuyer is all about advantages. If you want to sell your flat quickly, conveniently and without leaving your home, iBuyer is the option you were looking for.
Frequently asked questions
What is the difference between an iBuyer and a traditional estate agency?
Unlike a traditional estate agency that acts as an intermediary listing properties and waiting for prospective buyers, an iBuyer purchases the home directly from the owner for cash. This direct transaction model eliminates the need for property viewings, public listings and lengthy price negotiations.
How does an iBuyer calculate the value of a property?
iBuyers use an Automated Valuation Model (AVM) driven by big data and artificial intelligence to calculate a property’s market value. By analysing thousands of property data points and market comparables in seconds, the system generates an objective, market-adjusted cash offer without requiring an initial in-person visit.
How long does it take to sell a house to an iBuyer?
As reported by Spanish iBuyer Tiko in 2022, homeowners can receive an initial cash offer within 24 hours of submitting an online property form. Sellers then have seven days to accept the offer, after which a brief technical inspection takes place before formalising the sale before a notary in just a few days.
Do homeowners need to renovate their property before selling to an iBuyer?
Homeowners do not need to perform any renovations, repairs or home staging prior to selling to an iBuyer. The company evaluates the property using submitted details and photographs, adjusts its cash offer to reflect necessary repairs, and completes any required refurbishments after purchasing the home.
How do iBuyers and proptech companies source property data for instant valuations?
Proptech firms and iBuyers rely on CASAFARI’s Comparables and Valuation API documentation to feed their Automated Valuation Models with clean, deduplicated property data. This integration provides real-time access to asking prices and closing prices across European real estate markets.