~ Carol Tallon, CEO of Property District & Founder of Proptech Ireland
The middle ground between traditional transactions and ibuying transactions here in Ireland might well be the introduction of a ‘buy it now’ feature on online bidding platforms, which could be slightly above or below the AMV, depending upon prevailing market conditions. This would simply make our current ‘smart property transactions’ smarter
For those of you who are unaware, there is a new(ish) trend that promises to make life easier for buyers and sellers of property. ibuyer companies use technology to value and then make an offer on your home in seconds. ibuyers aims to make buying and selling homes a whole lot more convenient than the more traditional home sale we have grown accustomed to. Of course, the impact on property and buyers is unknown as yet, but if ibuyer operations come to fruition this could be a game changer in terms of real estate. So far in Ireland, only two companies appear to be offering this type of outright purchasing service (effectively one as the second has so many strings attached), however, neither have mastered the ‘i’ or instant part of the transaction.
ibuyers value the property based on a number of comparable factors and then instantly makes an offer, slightly below so-called or calculated market value (this varies from one ibuying service to another). If sellers choose to accept, the transaction is done. The ibuyer becomes the new owner and proceeds to market and sell the property in the traditional way, albeit it for a slightly higher price. This offers sellers more control or certainty over the move as it provides the finance immediately, without the stress of hosting rounds of open viewings for indecisive, mortgaged buyers.
Vendors can save themselves a lot of hassle and potentially save money in the long run too, depending upon the market. Of course, they are generally accepting a reduced price for their property in exchange for this certainty and early payment. For the ibuying company, this type of business model is completely different to the current and traditional method of home sales. In other jurisdictions, larger estate agencies have introducing ibuying services, however, such a move does not seem likely in the current Irish marketplace – yet! It might be highly lucrative during the next downturn, which is starting to feel pretty close.
The middle ground between traditional transactions and ibuying transactions here in Ireland might well be the introduction of a ‘buy it now’ feature on online bidding platforms, which could be slightly above or below the AMV, depending upon prevailing market conditions. This would simply make our current ‘smart property transactions’ smarter.