General
What is iBuyer?
An iBuyer is a company that uses technology to make an offer on your home instantly. iBuyers represent a dramatic shift in the way people are buying and selling homes, offering in many cases, a simpler, more convenient alternative to a traditional home sale.
How iBuyers operate varies, but the underlying idea is that a company estimates the value of your home and makes an offer. If you accept, they take on the burden of owning, marketing, and reselling the home. Depending on the service you choose, the benefit is the certainty of a firm sale and more control over when you move.
iBuying vs home flipping
iBuyers are often confused with home flippers, yet the two business models can be very different. Home flippers want to profit from buying low and selling high. They often target distressed properties, make major renovations, and then sell at a significantly higher price.
On the other hand, iBuyers typically focus on homes in good condition. They aim to make an offer fair or slightly lower than fair value with what a reasonable buyer would pay. Ibuyer model is a service fee-based model.
What’s is an iBuying database?
RedBuyers special database of homes that we currently have purchased and the transaction is not closed yet. This database can be accessed by buyers who register with us and have buying approval.
Who is RedBuyers?
RedBuyers special database of homes that we currently have purchased and the transaction is not closed yet. This database can be accessed by buyers who register with us and have buying approval.
Sellers
What is the benefit of selling to RedBuyers?
If you looking to sell quickly, without any hassle of the sale procedure like renovations, showing, open houses and negotiations iBuyer is a good option. This is a no obligation offer - you consider the offer only if you like our offer.
How does RedBuyers evaluate the price of a home?
Your home value is evaluated carefully by a team of real estate experts who specialize in the market. RedBuyers is able to provide our customers with data-driven and competitive offers. We provide our best effort to give a fair offer.
Does my offer expire?
Yes. Home values will often change based upon market activity, competition and other factors.
Our offers will usually expire in four days from the date of the offer.
Does RedByers negotiate on their offer price?
The team works hard to make sure that our initial offer is fair and a competitive market price. However, if you feel that we’ve missed something about your home that affects our offer – we want to know. Please feel free to contact your Redbuyers associate and we’ll be happy to re-evaluate your property.
How do I accept an offer?
You officially accept our offer by signing the purchase agreement. Once RedBuyers, and the sellers sign the agreement, we are officially under contract. RedBuyers makes it easy to sign your documents online using an electronic signature.
Does RedBuyers inspect at my home in-person?
Yes. RedBuyers will perform on-site inspection of your home within 15 days of the signed agreement. Typically The Sellers need to cover the cost of inspection. The purpose of inspection is to verify the condition of the home, and identify repairs that will need to be fixed. Cost of the repair will either be deducted from the offer price or seller will repair with a professional prior to closing.
What is cost of selling to RedBuyers?
We charge a service fee of 6.9%. We allow you to skip the hassles of listing your home however, once we buy and list your home, we’ll need to pay all the normal transaction costs that come with selling a home—including a commission to a buyer’s agent (normally 2.5%), listing agent commission, holding costs, remodeling fee, maintenance fees, taxes and other costs to list and market the home.
What is typical closing of the sale?
Typical closing will be 60-90 days.
Buyers
Why we sell these homes to a buyer before we close the purchase?
We are an iBuying company and we want buyers to be part of our buying team so that we can purchase more homes.
Why do we have a partnership-buying program?
Partnership buying is aimed for investors who don’t want any hassle of renovations and reselling. We take on the hassle and the profits will be shared.
Can I purchase a home from the partnership buying and live there?
Yes. You pay mortgage plus TMI. The ownership of the house will be in partnership with us. We can either sell in the future or share the profits, or you can buy it from us fully with 5% value increments per year. Partnerships will be up to 3 years maximum.
Can we do multi-people partnership?
Yes. You can have group of people in the partnership.
Agents
What are the benefits of becoming a RedBuyers Partner agent?
Our agent partners are a carefully selected network of a highly-rated, trusted agents who go through a rigorous screening process. Partner agents get exclusive benefits like serious buyer and seller referrals and paid up to 50%.
What is cost of RedBuyers Agent Partnership?
We do not charge anything to enter the program, and there is no upfront cost for referrals. Partner agents pay referral fee to our brokerage. The fee is a percentage of the agent’s commission and will be specified in the partner agent agreement, typically its 50%, but it varies with our agreement with the partner agent.
Do partner agent has to join with RedBuyers to work as partner?
No. We do not need our partner agent work under RedBuyers brokerage. Agents can work in their own brokerage and can still be a Redbuyers agent partner.
What types of referrals will partner agent receive?
For Partner Agents types of referrals—buyers, sellers, or both—will vary by market. Actual volume by referral type may vary over time. We do not distribute leads. We only send quality referrals that express interest in working with a top-rated partner agent to get the most out of their purchase or sale transaction.
Partnership Selling
What is partnership selling?
We provided a firm offer price with our iBuying program. If the seller is looking for more money, the seller can use our partnership program. After you agree on an iBuying price, we will remodel your home with our expertise to enhance its value with no additional cost. Any profit after selling will be shared 50/50 with you after the expense.
What if the seller doesn’t like the offers they receive with Partnership selling. What if the seller wants to terminate the sale?
The seller can terminate the sale by paying us our cost of remodeling and 50% service fee (50% service fee for our professional management of selling preparation.)
What is our realtor service?
Realtor service is the traditional way of selling using a brokerage and realtor. With our realtor service we provide a guaranteed price with our iBuying program. Seller can have a certainty of sale with our realtor service.
Commission
Is there any service charge or commission for buying homes from your iBuying program?
No. There is no commission or service charge for buyers. We charge service charge to sellers.
Can I use my own realtor to buy these properties?
Yes. You can use a realtor service. Realtors have to be signed with our referral program to get the referral commission. Any difference in the buyer agent’s commission should be settled between the buyer and their agent.
Who is paying legal fees, and other adjustments?
Seller will be responsible for legal fees and other adjustments like tax and utilities.