Technology

Who in their right mind would sell to an iBuyer?

Customers of Opendoor, OfferPad and their competitors place a premium on convenience and certainty, panelists said

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SAN FRANCISCO -- Why would homesellers choose to pay a high commission while running the risk of selling their home at a discount? Or to ask the question another way: Who would choose to use an "iBuyer?" Jerry Coleman IBuyers are investors that use automated valuation models (AVMs) and other technology to make quick offers on homes, close in days and then resell them. But they're not home flippers masquerading as tech companies, a panel of iBuyers said at Inman Connect. Home flippers "buy as low as you can, fix it up as much as you can and try to achieve top of the market," said Jerry Coleman, CEO of iBuyer OfferPad. "Our goal is not that. We want to pay as much as we can for the home." Instead of buying at a steep discount, iBuyers charge a service fee ranging from 6 to 14 percent -- which is ultimately supposed to net a homeowner considerably more than selling to a traditional investor. IBuyers bringing ease, removing stress iBuyer customers are people who place a ...