The team at KDD Conveyancing have seem a large number of changes in recent years due to the shifts in property technology and emerging business models in the property market. The introduction of instant buying, or iBuying, is one such change that is revolutionising the way properties are sold in the US. This movement is now fast approaching Australia.
What is an iBuyer?
At its core, iBuyer refers to a new technology-driven business model that is sweeping the property and real estate industry. In an effort to make the process of selling a property easier, companies are evaluating the market price of properties and making direct offers to sellers.
These companies are known as iBuyers. After buying the property, they complete any repairs needed and list the property for sale as soon as they can, often for a higher price.
How is iBuyer Changing the Real Estate Market?
For sellers, gone are the headaches and uncertainty that come along with selling a property. The iBuyer model offer sellers something traditional agents have never been able to: certainty of the sale price and time.
With this comes a host of other changes as iBuying rolls out in Australia.
Sellable: The iBuyer Model in Australia
Although iBuyer hasn’t officially entered the market, it has already been replicated by the company Sellable. Industry giants, LJ Hooker Corporation and White family’s Songpan Investment has invested into Sellable in 2017; giving this small start-up company a market value of 19 million and is now rolling their services in Sydney.
Automated Property Evaluations
The introduction of this iBuying model allows property sellers to receive an instant offer on their property by simply submitting a few key details online. They do not need to engage an agent or list their property in order to receive an initial evaluation and offer.
Technology which uses mathematical algorithms and data is at the heart of this iBuying model and allows companies to evaluate a fair market price for the home given its condition, location and features. No two homes are alike, and these algorithms take that into account as well.
Increased Importance of Conveyancers and Property Settlement Agents
As more sellers use iBuying services in the US, the need for a conveyancer they can trust will increase. A conveyancer who can evaluate the contract of the property transfer and ensure your best interests are upheld will be worth their weight in gold.
In other terms, they will be your safety net to ensure the companies incorporating the iBuyer model meet their obligations and offer you a fair contract.
How KDD Conveyancing Can Help
At KDD Conveyancing, we’re property settlement agents Perth residents have trusted for many years. We make it our mission to stay ahead of the technological changes sweeping through our industry.
If you choose to buy from or sell to a Sellable, we can help you evaluate the best options for you. Every iBuyer operates differently and they offer different terms in their contracts.
Some things to consider when dealing with the iBuyers model include:
- Do they generate profits by charging a fee or from the projected market value?
- How do they handle negotiations with sellers and what value do they offer buyers?
- Will they take care of things like repairs on your property?
- Can you choose an exact move out date that works in your schedule?
- Can they help you transfer out of one property and into another easily and smoothly?
At KDD Conveyancing, we like to ensure that we stay on top of the latest trends in property tech. When the iBuying model progress and integrate itself into the Australian property market and industry, we would like to ensure you know what you are getting yourself involve with.