Why everyone should be talking about iBuying – instant cash house buyers.
What is iBuying?
We’ll hazard a guess our UK readers will have heard of cash house buyers but you won’t have heard of ‘iBuying’ until very recently. Across the pond, US iBuyers such as Opendoor and Redﬁn have been snapping up houses of all shapes and sizes for the best part of a decade.
As The New York Times reports, ‘The trend is growing. According to a study by Redﬁn, 18 U.S. real estate markets saw at least 1 percent of homes sold through iBuyers during the third quarter of 2019. In those markets, 3.1 percent of all homes were bought by iBuyers, up from 1.6 percent a year earlier.’
The American housing market has even gone one step further by introducing iLending. This is a service that makes cash-oﬀers possible for all. The result, as The New York Times puts it, ‘(gives) buyers a leg up in an overheated market’.
What’s the UPSTIX iBuying model?
UPSTIX’s cash house buyer model involves making property owners an instant cash oﬀer. This offer is typically an 11% discount on the market valuation of their property. The property owner pays the conveyancing fee, and that’s it. They can choose to move with certainty within 7 days of accepting the oﬀer, or at a time that suits them. The instant cash house buyers model won’t be for everyone but it does provide UK consumers with greater choice.
For traditionalists or those unfamiliar with iBuying, it may seem farfetched. But in our on-demand economy, it’s the next logical step.
A credible quicker alternative, providing more choice in the property market.
Last year, Ideal Home reported that ‘Completing a house sale will take you up to half a year in some parts of England and Wales’. In a world where one-click buying, same-day deliveries and apps for everything are the norm, it seems incongruous there hasn’t been a disruptive force in the way we buy and sell houses before now.
And the instant cash house buyers model is not so diﬀerent from what we know in other sectors, such as the second-hand car market. Two million British customers have used webuyanycar.com to sell their vehicles since 2006, using rapid online oﬀers to ascertain a fair price. While property commands higher sums, the principals are broadly the same – instant cash oﬀers based on accurate data-led valuations, leading to quick sales.
Admittedly the UK property market sell has a bit of catching up to do in comparison with our American counterparts, partly due to relatively high house prices and a wider range of housing stock. But in 2022 there is no denying that instant cash house buyers oﬃcially arrived on our shores.