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The Zillow iBuyer model is a little different. They're happy to sell for a loss (all iBuyers must be because they're all losing money despite buying at a discount). It's just the cost of doing business for them. They want every single person in the country who's thinking of selling their house to go on their website and ask for an iBuyer offer. If you sell the house to them . . . fine. They'd rather you didn't though because they'd prefer to take your info and sell it to a real estate agent in exchange for a 30% referral fee. They're currently test marketing this system in CT and CO as I understand it.
Yup.
"Fake iBuyers" for lead gen is a model promoted by major national real estate brokerage firms as well as by Zillow.
"Race to the Bottom" comes to mind.
I find it interesting when realtors tell you what to do but can't give you an estimate of the payback. And the payback will vary depending on the thing you do. If you don't get more than you paid, it's not really worth doing.
I keep hearing today's buyers want all gray and dark floors. Personally, I don't care for it but that's what they all seem to want.
The way this is written sounds like an ad, honestly.
That's really funny. I assure you that we are a couple of old toots who sold a too big house to a new one in our old home town after I retired. We are now unloading 4 million boxes of junk into the new place and eating take out.
If the company I dealt with wants to put me on TV with Magnum PI or some drug company wanting to sell ZORDON to give you a smooth functioning GI tract, call me - I could use the money.
Still laughing. BTW, my research indicated that you realize abot 60% of improvements.
Last edited by GEM-Texas; 10-31-2019 at 10:47 AM..
A follow-up. We used a firm to buy our house. We interviewed three agents. Each had some master plan of renovations, being out of the house for showing (decluttering to the extreme, so as it woudn't be liveable), 3D computer modeling, etc. An endless stream of lookiloos. Looking at the time it took to sell comparable homes in our neighborhood, there was no guarantee the home would be sold when our new house was done - or it might be sold way before.
The uncertainly wasn't tolerable for our circumstances. The price offered was in line with the comparable prices for similar homes on the listings the agents supplied. We may have taken a hit on repairs and fees but it was doable for us to have the convenience
The firm was quick, closing was easy, payment was quick. So it worked. Closed on computer with an Skype like interface and notaries.
The fast cash buyers frequently use the term fix to flip. The ones I've checked out seem very straight forward. They tell you what they'll have to do to make the profit they want. They're all coming in around the same number which they're probably using the same formula. It's just how bad they want and the seller wants to get rid of it. Here utilities and taxes are brutal along with some other issues.
I'd say get some numbers from both realtors and cash buyers and see what they'll offer or you can get. Research the neighborhood yourself. Figure out exactly how much you're willing to spend. If it's nothing it's nothing if it's a few or ten thousand that's your maximum number. The problem with starting many renovations or updates it's very easy for one thing to lead to another even if its code updates that won't be seen by the buyer. Also figure out your timeline and carrying costs.
Also with that number keep in mind you'll need money to satisfy any inspection findings which could cost. That's where a cash as-is buyer comes in. You just have to decide if a quick cash sale is for you. Some don't have the time, money or temperament for a traditional realtor driven sale and others do.
I find it interesting when realtors tell you what to do but can't give you an estimate of the payback. And the payback will vary depending on the thing you do. If you don't get more than you paid, it's not really worth doing.
I keep hearing today's buyers want all gray and dark floors. Personally, I don't care for it but that's what they all seem to want.
In my experience they always give you an estimate on the payback. My realtor also provides list of contractors and will choose fixtures and tiles because she knows what the buyers in my area are favoring.
Large homes in my area, that are not updated sit and sit and sit and can sell for half of what they are appraised at because people who are looking for large homes do not want to do the update work. People will spend a lot more for an updated smaller home.
Your correct, if you don't get more than what you paid its not worth it.
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BTW, my research indicated that you realize abot 60% of improvements.
I like your posts GEM-Texas. 
This gives me hope.
