How iBuying Is Changing the Real-Estate Market

Silicon Valley startups are shaking up the American real estate market with a system called iBuying. With iBuying, you contact an online company like Zillow or Opendoor and it gives you an offer nearly instantly, meaning you skip the entire process of listing your home and negotiating with sellers. iBuying currently only makes up about 0.2% of U.S. home sales, but some analysts believe it could touch up to 10% of all transactions by 2022. Despite the hype, iBuying does have its share of disadvantages versus the traditional real estate agent system. Here’s how the process works, along with its effect on the value of your home — even if you never sign up. With iBuying, you visit one of the real estate startup websites and enter some basic information about your home, like the address, age and condition. The company will then run this data through an algorithm and compare it to the value of other similar listings. Once the calculation is finished, the company will come up with a cash offer for your property. That’s it. You don’t have to hire a real estate agent, renovate your home, hold viewings or worry about whether the buyer will be able to qualify for a mortgage.

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