selling your home Archives - Fort Myers Real Estate and Homes For Sale

Which is more valuable, your home or your data? iBuyer Programs Steal Your Home and Your Data so let’s investigate what an iBuyer program is and what its goals are.

iBuyer programs offer an easy button to sell a home, with a catch. These are investors looking to scoop up homes at a large discount. Essentially you sell your home so far below market value it becomes lucrative for an investor to buy and flip your home. They make all the profit. In other words, you’re giving your home equity over to them.

iBuyer programs are nothing new. Investors have been posting those pesky road signs all over the place offering to pay cash for your home or buy ugly houses for decades. Today’s iBuyer program is different, because they have another motive. They want your data.

iBuyer programs realize once people see their offer then subtract fees, closing costs, and repairs after their inspections, over 90% of sellers become disgusted and turn them down. By then, it’s too late. They’ve captured all your data. They sell that data and make millions. Their goal is to make billions.

Here’s how it works. First, you get an offer. It’ll be low, perhaps 10% or more below market value. It gets even better. They tack on fees, typically in the 5-7.5% range. Then they add closing costs in the 2-3% range. Then they do inspections, because up until this point they haven’t even seen your home. It’s all been done using data points and algorithms. The report comes back, and they decide you need $15,000 in repairs plus your kitchen needs updating, so tack on another $20,000. At this point, the seller is furious.

The seller says no, and the deal is off. The iBuyer program knows how much you owe on the home, how old your roof, appliances and air conditioner are, what improvements are needed to the home, where you’ll be moving once you sell, and much more. How? Because you answered their questions to continue through the process. You didn’t like the ending, but you were curious through the process to see what number they would give you. They had you at hello.

So, you say, “I’ll sell my home with a broker and keep the profit yourself.” That’s ok, because they refer you to “top brokers” in the area. You guessed it; they collect a referral fee from agents they recommend. They may not be the best agents, but surely, they are agents paying them a fee.

Have you seen ads on TV promising to find the best agents in your neighborhood? HomeLight is one that comes to mind, and they are also an iBuyer. Contractors, remodelers, home improvement stores would all be interested in the age of your appliances, or what your kitchen and baths look like. Same with flooring. Now they have pictures, because you guessed it, the inspector took pictures during the inspection period.

Outside mortgage companies have your info too because they bought your data. They know your phone number, email address, how much you owe, where you’re going, and more. The simple offer you were curious to get has become a treasure trove of data.

If you sell your home to the iBuyer, they win big. If you refuse to sell, they still win big. The only loser is the poor seller who was just curious to use the easy button and sell their home if the price was right.

Keller Williams is coming out with an iBuyer program to prevent this. We have no intention of selling the data. We’re not going to refer it out to other agents. If the seller doesn’t like the cash offer, they’ll use one of our agents to get full market value. We have our own mortgage company that offers a zero-lending fee loan. So, we’re not selling to other mortgage companies. We’re not selling to contractors or home improvement stores. We simply want to provide the iBuyer option so people don’t go to other places that will sell your data.

Our program is rolling out to 8 markets this year and more after that. If you’re thinking of selling your home and want full market value, Always Call the Ellis Team at Keller Williams Realty Fort Myers & the Islands 239-489-4042 Ext 4 or visit www.SWFLhomevalues.com

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I recently read an article in USA Today about how the housing inventory shortage nationwide reached 20-year low and how it’s affecting the market. While every market is local and is influenced by its own factors we do not work in isolation of other markets. Therefore, national stats are also of interest to us.

For instance, if the economy is down nationwide chances are it’s affecting us here in SW Florida. Additionally, if snow birds have a hard time selling their properties up North, they may not all be able to purchase down here.

The article mentions there is a 4.3 month supply of homes on the market nationwide. Locally we calculate the supply to be 4.22 months, so we’re pretty similar to national statistics. One of the reasons mentioned in the article for the tight supply is that baby boomers aren’t likely to move in the next year. 78% of baby boomers are happy with where they live, and baby boomers own about 33 million homes.

While many baby boomers would love to move to Florida or Arizona, some are reluctant to leave family and friends behind. While this is mentioned in the article, it’s not a trend we’re seeing locally. It appears to us now more than ever baby boomers are eager to move and family isn’t holding them back. Of course, we tend to deal with those that are contemplating making the move versus those that never would.

Millennials have started purchasing recently which will add to tight supplies. We believe as baby boomers age they will begin to think about smaller homes, homes in warmer climates, or homes that meet their needs due to health reasons. Not every baby boomer will appreciate a 2 or 3 story home up North. Once they decide a 2-story home is no longer their best option, they may consider whether staying up North is too. It opens the whole gamut once a move is considered.

Thankfully builders are building again. Unfortunately, most buyers don’t know all the building developments available to them, nor which ones are offering incentives and discounts. Most buyers don’t realize they get a better deal through a realtor than they do walking in on their own.

If they walk in and ask that question the answer will be it’s the same price whether you’re represented by a Realtor or not. They may not tell you about incentives, and they certainly won’t tell you about competing builders in other neighborhoods.

We’re getting early word that the Fed will scale back it’s $4.5 Trillion in bonds beginning in September. This will raise interest rates. If rates go up we could see a buying frenzy followed by a reduction in the rate of growth in home prices. Nationwide the S&P Core Logic Case Shiller home price index was up 5.6% due to low inventory. Rising rates could curtail that growth.

Either way we need more homes. The economy is doing better and people are buying. If you’re thinking of selling, you might want to cash in before the stream of sellers enter the market. You can see from the chart inventory is lowest in the summer and picks back up again starting in September/October. Why compete with all the other sellers next season when you can have them all to yourself now?

If you’d like to talk about selling your home, please call Sande or Brett at 239-489-4042 Ext 4 Or you can go to www.SWFLhomevalues.com and find out your home’s value for free in minutes.

If you’d like to search for your next home check out www.LeeCountyOnline.com Our team can help you find your next home and sell the one you have, making it a smooth transaction.

Always Call the Ellis Team at Keller Williams Realty! We’re here to help.

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iBuyer Programs Steal Your Home and Your Data