Time is money, according to the famous Benjamin Franklin quote, and homeowners often need to sell a property fast. Home sellers may look to an iBuyer company to make a quick, hassle-free sale. However, while these types of non-traditional real estate transactions can appear convenient, iBuyers don’t work for every seller.
iBuyers, online companies where homeowners may go when needing an “instant” buyer for their property, may make an immediate offer. This can be enticing but proceed with caution. It’s not uncommon for an iBuyer company to change its offer after a home inspection. In addition, there are several types of homes and scenarios where an iBuyer won’t buy the property.
What Types of Homes Do iBuyer Companies Not Purchase?
It’s recommended home sellers read all the ins and outs of terms presented by an instant online real estate buyer before entering into any type of deal. Check out the company’s FAQ page and look for a topic header or question about the type of homes that particular iBuyer doesn’t purchase. Many iBuyer companies won’t purchase any property that may include the following:
- Damage caused by water/flood, fire, or a natural disaster
- Serious foundation or structural issues, especially any that compromise safety
- Mold or asbestos due to health risks
- Wells or septic systems
- Mobile, manufactured, or pre-fabricated homes
iBuyers also have restrictions regarding the location of the property; many won’t buy if it’s not in a specific area. They also may not buy a home on a lot that’s too big, or a home that’s too old, too expensive, or too inexpensive. If it sounds like these iBuyer companies are beginning to sound a bit like Goldilocks trying to find the perfect one, just wait as it becomes even more complicated. iBuyers typically won’t purchase a home if it’s being foreclosed, short sold, or if the owner/seller needs a leaseback. If the seller does not have clear, proven ownership, the deal is likely to fall through.
The good news is that homeowners don’t have to rely on iBuyer companies or even traditional real estate agents to sell a house. HomeGo can help and understands that when you need to sell a property quickly and with minimal hassle, you don’t want to be caught in a tangle of restrictions.
Hit By a Fire, Flood, or Natural Disaster?
We hate to see any homeowner hit by a house fire, flooding, or any type of natural disaster, but these life-changing events happen. Often the disastrous event is something you couldn’t have prevented, an accident or incident beyond your control. HomeGo understands this and selling is still an option with us.
But I had a house fire, will my home still be considered?
Fires can happen so easily, from a defective electrical cord on an appliance to a lightning strike. More than 350,000 of all fires in the United States are residential and often these homes become difficult to sell. Traditional buyers can be wary of fire-damaged property and many iBuyer companies won’t make an offer.
For example, in Tampa, Mirta needed to sell her home due to a fire and the traditional real estate market was not an option. The last thing she needed or wanted during this difficult time were complications or to have to deal with home inspections. HomeGo doesn’t rely on home inspectors and was able to purchase her home allowing her to move on and begin to rebuild.
What about a flood or other natural disaster?
In 2017, Hurricane Harvey hit Texas and covered 70% of Harris County in 1.5-feet of water. Houston actually sank two centimeters because of the massive weight of the water. Harvey damaged more than 200,000 homes, including David’s. Like many homeowners after Harvey, David couldn’t live in his house, but he needed to be able to sell it in order to move into a new home.
Flood-damaged homes are rarely at the top of any home buyer’s list and iBuyers won’t look at them either. HomeGo does and did. HomeGo was able to do what an iBuyer couldn’t and David sold his hurricane-hit home. HomeGo also will look at homes damaged by hail, ice, and wind from storms and even tornadoes.
Dealing with Foundation Issues and Major Repairs
One of the most stressful parts of selling a house is having to make repairs and go through the lengthy and invasive process of having a home inspection. That is a major benefit sellers have when working with HomeGo—no home inspectors.
But my house has foundation problems, will I be able to sell?
Foundation issues for homeowners are common in many regions of the country, and Texas is one of those areas. From extreme heat to soil expansion and contraction, several things can cause cracks in a home’s foundation or contribute to other issues that affect a home. Foundation problems, in general, can make an iBuyer not make an offer or even back out of an offer already made. HomeGo is different and has helped thousands of homeowners sell their property without the headache and expense of making repairs.
Mold or Asbestos = No Deal
iBuyer companies don’t make deals on properties that have mold or asbestos issues. These can be serious problems and when they show up during a home inspection, you as the seller are responsible for remediation. Dealing with mold and asbestos problems can become a huge expense and take a long time to fix depending on the availability of the remediation professionals, the extent of the problem, and then having to have it re-inspected after it’s fixed.
Instead, sellers can look to HomeGo because we buy houses in any condition, even with mold and asbestos. We’re looking out for you, the seller, so you can move out quickly and get away from these potentially dangerous issues that can affect your health.
iBuyers Avoid Foreclosure Properties
Read through the FAQ pages of various iBuyer companies and a common theme emerges: they don’t buy a property that’s in foreclosure or one being sold as a short sale. When a seller is in this type of situation it’s stressful and that’s where HomeGo can help. We worked with Daniel in Oklahoma City when he needed to sell his home to avoid foreclosure. Our local agents were able to make an offer and help Daniel get out of a difficult situation and make a fresh start.
Sellers can turn to HomeGo when there’s a need for leaseback as well. We’re here to make a difference and assist homeowners across the country make their move on their timeline when it’s convenient for them as a seller, not the buyer as it is with many traditional or iBuyer offers.
Lot Size and Home Price Can Deter an iBuyer Company
It’s not uncommon for a house to sit on a lot that measures at least a half-acre or as much as 1.5-acres. However, if your home lot falls between these sizes, it’s likely that iBuyer company you were considering won’t make an offer. They simply don’t buy properties that fall into those lot sizes, but HomeGo can.
Home price makes a difference as well. Real estate agents may tell sellers there is a “sweet spot” when it comes to establishing a listing price. iBuyers have their own version of the sweet spot and that’s the price of the home’s value. iBuyer’s often won’t make an offer if the property doesn’t fall in the range of $100,000 to $500,000. For many sellers, their home’s value falls outside of that sweet spot.
Fortunately, HomeGo doesn’t work that way, we have no set price range for houses that we buy. In fact, 33% of all HomeGo deals in the last 12 months were outside the average iBuyer sweet spot range.
iBuyers Shun Old Homes
Older homes have character and history, but we know that sometimes you want to move on and into a newer property that better fits your needs and lifestyle. You can still sell quickly with HomeGo because we don’t set age limits. The typical iBuyer company chooses not to make offers on homes built before 1960. In states like Missouri, Kansas, Oklahoma, and parts of Texas, there are many homes that were built even before 1940. Even with renovations, their age alone could disqualify them for an offer by an iBuyer. If your home is older, talk to HomeGo.
Home selling is hard enough, which is why HomeGo does what iBuyers can’t or won’t. Look to HomeGo for same-day offers that won’t change, no commissions or closing costs, and transparency throughout the entire selling process. We buy a home every 20 minutes and your’s can be next, even if an iBuyer company has passed it over.