iBuyer and the investment opportunities: what it is and how it works
Selling a property can be a very cumbersome action. And it is true. It requires a unique predisposition, time, and energy in a wide range of unavoidable previous steps. In short words, you must be ready to buy a property. (Read article Why is Buying a Home Everyone's Dream?) In this context, online real estate platforms are an excellent option: the so-called iBuyer. What is an iBuyer? In short, it is a novel method that is increasingly popular in the resale properties market around the world. A simple, agile, and fast way that is here to stay in the real estate market.
Before tackling this topic, it is good to know that many people are reluctant to these new marketing models. They prefer to do things the old way. Perhaps by going to a traditional real estate with offices in Nicosia or any other city in Cyprus and dealing face to face with a real estate agent.
What is an iBuyer?
When we talk about an iBuyer, we mean a licensed real estate agent (an estate agency) with the ability to buy properties online almost automatically. After buying it, this company sells it. An iBuyer performs a series of technical analyses of properties for sale and then determines their value, sales price, and the profits obtained from this operation.
How does this business model work?
It is a relatively new business model, which is also present in the Cyprus marketplace online. The iBuyer openly fosters the commercial properties universe, allowing anyone, from anywhere, to list their property and then sell it. As we have already discussed in other publications, the Cyprus real estate market constantly adapts to the new trends in the property market.
For now, the important thing is to know if the system is suitable for each type of client. At the same time, property in Cyprus is in many respects a bit dated, and some clients need time to adjust to new trends. For now, there is a "step by step" that is worth going through.
1. A property owner contacts an iBuyer company.
2. The company sends an offer to the interested party.
3. The owner decides if he accepts the offer.
4. If there is an agreement on the price, the buyer will conduct a home inspection.
5. The parties decide on a final price, including taxes.
Each company that provides this service offers a wide variety of benefits. It should be noted that they seek to offer a personalized and high-quality service. If there is a common point: the analysis of the data of the real estate industry is similar for all licensed estate agents that provide this service.
1. Gives predictability to the market.
2. The costs of the conventional market are saved.
3. Once the price is accepted, you advance to the purchase instance.
4. The dates of the transactions are specifically determined.
5. The process is faster than in other cases of buying a property.
Who are the ideal customers for this system? Undoubtedly, all those who seek to carry out a transparent and fast process. Indeed, the estate in Cyprus is on the way to this type of operation. Furthermore, we believe that more significant investment will be made with this system, including luxurious properties. Finally, it is also an excellent tool for all those encouraged by the advances technology offers, especially in real estate matters. And following these trends is how at Viotopo, we bet on providing more and better services to our clients, both buyers, and sellers.
What are the drawbacks of the buyer?
It is good to know that this system is not for everyone. And this occurs when there are emotional situations with properties. Why? Remarkably simple: the emotional bond with a house or an apartment generates a distortion in the price. This distortion causes the valuation to be incorrect, with the logical consequence that one of the parties aborts the transaction.
On the other hand, iBuyer platforms are not reliable, so it is good to know if the app we are using is trustworthy. In this sense, it is good to corroborate that we are not facing a deception. Therefore, we must find the validations that a platform of these characteristics usually has on the internet.
Finally, we want to add a fact that is not minor: not all iBuyers companies operate globally. There are cities in the world that still do not have this service. Anyway, it is here to stay. Just as the stock market has automatic systems to value shares, the same happens with the real estate market. Undoubtedly, we are facing a paradigm shift that is advancing at full speed.