The real estate market is a dynamic and ever-evolving industry. The rise of technology has paved the way for new players to enter the field, and one such player is the iBuyer. iBuyers utilize cutting-edge technology to provide instant offers on homes and facilitate quick closings. Their reputation for convenience, speed, and cash transactions may attract some sellers. But what sets them apart from local real estate investors? In this blog post, we will explore seven key distinctions between an iBuyer and a Chicagoland real estate investor.
1. Purpose
The main objective of an iBuyer is to facilitate fast buying and selling of houses, leveraging technology to provide instant offers and expedite the closing process. In contrast, JCH Properties, as a small local real estate investor, prioritizes fostering meaningful relationships and assisting individuals in challenging circumstances. We sincerely empathize with homeowners who require swift sales due to financial, emotional, or other factors, and we are committed to offering effective solutions. We can often offer more money to sellers with our ability to see the property first hand and work agreeable timelines with sellers. Our aim extends beyond mere financial gain; we genuinely strive to aid individuals in our own neighborhood solve their real estate problems and move to the next phase of their lives.
2. Financial Backing
iBuyers, backed by corporate giants with substantial financial resources, possess the ability to provide swift cash offers and expedite the property closing process, often within days. But selling your house to the big corporate interests is taking our local neighborhoods down a path that’s leading to much higher rents, remote landlords, and in some cases foreign capital buying up the American dream. Conversely, traditional real estate investors may not wield the same financial power to do hundreds of deals at once, but their wealth of expertise enables them to offer innovative solutions that still facilitate fast home sales for homeowners and offer one point of contact for all the seller’s needs. Plus, local investors aren’t just renting to the highest bidder moving through town. One key rental strategy is a rent to own where the tenant ultimately buys that property and treats it like their own home from day one.
3. Speed of Transactions
iBuyers are known for very fast purchases for a low cash offer. They use technology to provide instant offers and can close on a property in a matter of days. They play a numbers game expecting that a certain percentage of sellers will take whatever they can get fast and move on. Traditional real estate investors may take longer to close on a property, but they can provide customized solutions to help homeowners sell their homes quickly, as-is, and offer advice for other areas like moving companies, renting or buying in the area, and how to handle any liens or title issues with the property before the sale. An iBuyer will simply run the formula, make the offer as a take it or leave it, then move on.
4. Offers
iBuyers will offer cash for a home appealing to those who need to sell quickly. However, the offer is usually lower than what a smaller local real estate investor, like JCH Properties, would offer. JCH Properties takes the time needed to understand the homeowner’s situation and challenges and provides a fair offer that takes into account the existing condition of the property, the local market, and the homeowner’s needs. JCH Properties can make up to three types of offers depending on the seller’s priority. If a quick sale for cash is needed, that can be done. If a seller has a bit more time but needs to hit a certain price point, other offer types can be much higher and surprise sellers in being much closer to the market value than they would have thought.
5. Fees and Commissions
What’s hidden within iBuyers cash offers are fees and commissions, often higher than what a smaller real estate investor would charge. Due to the speed and convenience the iBuyer offers and the quick acceptance, they assume later homeowners are willing to pay for those services just to close out the deal. Traditional real estate investors, like JCH Properties, charge zero fees and no commissions. Any seller costs are transparent and reasonable like crediting taxes accrued under prior ownership, paying off past due water or HOA fees, and settling any minor liens placed during the seller’s ownership. Costs are shifted to the buyer as part of the service and included in the offer price so what you see is what you get.
6. Personal Touch
iBuyers depend on technology to calculate and produce instant offers as a single option to close quickly. That may fit for some, but this means there is very little personal touch involved and no customization for what the seller may need that’s unique in the transaction. But a small local real estate investors, like JCH Properties, take the time to build a relationship with homeowners and provide personalized offer solutions that can still sell their homes quickly, but often the seller is looking for more help than just a quick check. Sellers may need to leave some things behind or need help with junk cleanout. Some need assistance dealing with other parties like other family on title on an inheritance, a divorce, or how to deal with the bank on a pre-foreclosure. JCH Properties is a trusted expert in handling purchases in these situations and can advice what the seller needs to do and what they don’t have to worry about.
7. Local Knowledge
JCH Properties is a small local company that has been buying and selling homes in Chicagoland for years. We know the local market, how it changes over time, and can provide insights and advise to help sellers through their real estate problems. Often quickly and for a fair price.
iBuyers and local investors are different in their purpose, financial backing, flexibility, offers, fees and commissions, personal touch, and local knowledge. While iBuyers may offer convenience and speed, your smaller local real estate investors, like JCH Properties, offer personal, custom solutions and genuinely care about helping local neighbors in difficult situations. If you’re a homeowner in Chicagoland and need to sell your home quickly, consider working with JCH Properties to get a fair offer and personalized service. If you need to sell your house in Chicagoland, find out how JCH Properties can help. Call our office today at 815.267.6563 or text directly with the owner to schedule a call at 815.302.0970.