The word on the street is that iBuyer programs are gaining traction and getting funded—in big ways. That’s nerve-wracking for many agents, especially for those in markets that were early targets of marketing waves and who have conditions such as Phoenix, Raleigh, Dallas, Vegas, Orlando, Atlanta, Charlotte, San Antonio, Tampa and Nashville.
The problem is, there’s so much misinformation, and just as many flat-out untruths, in the way these programs are being marketed that agents are left scratching their heads, while consumers are losing a lot of equity for absolutely no reason at all. As a real estate speaker and coach for more than 25 years, that’s frustrating to me. At my organization, we’re all about people. About helping them get the most out of this life. About helping them get to their personal next level. These programs are hurting people, and that’s not okay with us.
There will always be disruptors in the business. I get that. There will be things that will force agents to increase their skills, compete on a higher level, think creatively and up their game. I have no problem with that. Frankly, I don’t think most top producers do either. A little competition is a healthy thing, as it moves people out of their comfort zones and into their commitments, and that’s awesome.
However, when programs come into our industry that affect an agent’s ability to earn a living—and they’re based on misleading information and false narratives—that’s when it’s time to spring into gear and know the real facts, figures and data that can counter the mistruths and leverage that disruptor for all it is (and frankly, isn’t).
That was my goal when I put more than a month’s worth of research and resources into investigating these programs so that I could present to my coaching members and the real estate community at large what they very clearly need to know about them. That way, they can inform the folks in their sphere and farms about the financial losses they could face if caught in the clutches of these kinds of programs and why it’s important to have a real estate professional by their side to advocate for their best interests and investments.
The truth is, these programs aren’t iBuyers. They’re iInvestors. And just like investors, their goal is not to benefit the home seller, but to get the property at the lowest possible price, force repairs and turn it over quickly for the highest potential return on the company’s investment—not the homeowner’s.
The good news?
- iInvestors actually show the value of a 6-7 percent commission.
- Most of these sales are homeowners who contacted them before an agent did; therefore, you need to educate the homeowners in your market.
- This can be an easy concern to handle on a listing appointment.
- This model will not last.
- You can offer to buy the house for what iInvestors are offering.
Learn the facts so that you can be a resource that consumers in your market can count on for the truth about protecting their investments. To help, I’ve spelled them all out in a recorded presentation called “iBuyer Beware: Why iBuyer Is the Worst Thing to Happen to Homeowners.” Find it at www.ThePowerProgram.com/iBUYER.
Darryl Davis has spoken to, trained and coached more than 100,000 real estate professionals around the globe. He is a best-selling author for McGraw-Hill Publishing, and his book, “How to Become a Power Agent in Real Estate” tops Amazon’s charts for most sold book to real estate agents. He is the founder of the Next Level real estate training system The Power Program®, which has proven to help agents double their production over their previous year. Davis earned the Certified Speaking Professional (CSP) designation, held by less than 2 percent of all speakers worldwide. To learn more, visit www.ThePowerProgram.com.