iBuyer Beware - The Costs of Selling to Startups

With all the technology that's out there now, it seems like some jobs are becoming obsolete. Machines have replaced assembly line workers, and even self-checkout machines are taking over grocery stores. But will there be a technology to replace the Realtor? Some services on the market now that claim to do so, letting sellers "skip" the negotiation process and the work with a real estate agent. These iBuyers, such as Knock, OpenDoor, and OfferPad aim to sell your home quickly and conveniently, often allowing homeowners to close on their home in a matter of days. But does speed and convenience beat out the quality of a trained Realtor? Many industry experts say no. Most of the iBuyers operate in a similar fashion. A seller contacts the company about selling their home, and the investors use what's called an automated valuation model to determine an approximate value of the home. According to MetroBrokers , this model uses tax records and comps to determine the ...