The twenty first century has dumbed down and simplified everything from communication to shopping, most recently real estate transactions have fallen victim to this “over simplified” way of life. Years ago life required more effort, and with that effort came interpersonal relationships that grew from day to day contact. Over periods of technological advancement, we have been able to eliminate the need for human interaction and effort as everyday tasks are completed from the comfort of our homes. Unlike most parts of our world, real estate has remained a task that requires human interaction. The process of transitioning one’s largest asset to another requires title work, deal structuring, and accommodation as it is not a seamless process. Companies such as Zillow and Offerpad have made the latest attempts to streamline this personal transaction as companies have been able to do with shopping and food delivery, however, many will come to realize real estate is not a process that can reduced down to an algorithm.
The longest standing objective for someone selling their home has been to do so without sacrificing six percent to a real estate agent, these real estate companies have given homeowners the opportunities to do just that, or so they think. According to a review of Offerpad on realestatewitch.com, Offerpad charges a minimum of 6% per transaction and can go as high as 10%. Offerpad may buy a house in just ten days, but that speed comes at a price. Due to their need to make money as a business and their high holding costs due to quick acquisition of real estate prior to selling inventory, offerpad charges an arguably higher rate than most real estate agents and buys homes as cheaply as possible. Not only are sellers taking less for their homes for a quick sale, they’re paying more in fees for that sale than they would with a typical realtor listing. Offerpad isn’t the only real estate acquisitions company that charges you to buy your house, reading the fine print will show that nearly every company charges you a percentage.
As our world moves away from human reliance and becomes dependent on automated functions, many things that should not be left to computers are as errors and miscalculations are made. When it comes to real estate, nothing has an exact value. Those who have made their careers in real estate will tell you a home is only worth what someone is willing to pay for it. Even as the real estate market is driven with numbers and calculations, it is dictated by an emotional appeal that may not be predicted. Many homebuyers fall in love with a place by its “feel” or “flow.” Every human has a different perspective, and that perspective makes homes more desirable for certain people. Estimating the value of a homes involves a process of pulling comparables and using judgements to determine a range of value. Valuing a home requires someone to recognize the color grey would deem a house more desirable than one painted hot pint throughout. Personal touches to a home such as finishes and colors can’t be analyzed by computers, as computers are limited as to what they determine as value. In some cases sellers may turn to one of these companies to determine their home’s value if they’re trying to sell it, complicating the real estate market. Real Estate acquisitions companies do not have the time to properly asses a home as they implement algorithms to do so, leaving sellers with a false sense of value and disappointing them if their home does not bring the number an algorithm at one of these companies quickly produced.
Real estate acquisitions companies, or “Ibuyers” as they’ve been called, posses another issue that was never associated with the real estate market prior to their introduction. Real estate is one of the most personal purchases one makes in their lifetime. Homes are some of the largest assets that can be owned and selling one involves letting go of the place you spent much of your life. Why would sellers leave selling one of their most personal assets to a robot? Algorithms and automated calculations by these larger companies simply spit out an offer as the company’s employees simply work a file to close the deal. Most real estate transactions involve unplanned circumstances and these “Ibuyers” do not offer the one on one assistance sellers often need to feel good about selling their home. Real Estate transactions have only gotten more complicated since their inception, so leaving it up to a worker for a company who does not understand the process from beginning to end is risky. Ibuyers seem as if they are the obvious solution to a simplified real estate experience, however, if someone is left in the dark they can mistake that disservice for simplicity.
Many believe the easiest way to sell their home consists of submitting a form on a website that spits out an instant offer, but unlike most things that have become oversimplified throughout the years, real estate is not an easily dummied down process. The inability for large companies such as Zillow and Offerpad to properly determine a home’s value and their hefty fees leaves sellers wondering if avoiding realtor fees are possible at all. Fortunately, real estate fees are avoidable when it comes to selling your home and Ibuyers do not have to be involved. Local real estate investment companies are the seller’s key to a quick, stress free transaction where real people are available for assistance and percentage fees are not involved. By taking advantage of these local companies, not only will you avoid percentage fees, you’ll be dealing with an expert that can walk you through the process in a transparent way. There is no need to oversimplify a process that is not simple, sell your home to someone who wants to buy your house without you paying them to do so. During this time in history, too many things have been over simplified and learning the hard way that real estate is not a process that can be dumbed down, sellers should seek out local investment companies.