We’ve all heard the popular phrase “up the ante,” which Merriam-Webster defines as “setting a higher standard or goal—often.” In real estate, we are continually called upon to up the ante by striving to set higher standards than our competition, particularly when proving ourselves against iBuyer companies.
What iBuyer companies do (and don’t do)
We visited all of the iBuyers’ websites to see what they were promising, and the more we read, the more we realized that what they imply is not the reality. In fact, many of their “perks” would be detrimental to homeowners.
The painful truth is that iBuyers aren’t there to be the seller’s friend; they are a buyer, and they are committed to paying the seller as little as possible for their home. As home flippers, they are looking to make a profit. Unlike real estate agents, they aren’t going to try and get you the highest amount for your home; they are committed to paying as little as possible so they can get the biggest profit when they turn around to sell it.
Fiduciary duty and conflict of interest
When it comes to fiduciary duty, iBuyers have a large conflict of interest because they cannot have a fiduciary duty to you and themselves at the same time.
In our industry, we have a Code of Ethics that says: “When representing a buyer, seller, landlord, tenant or other client as an agent, real estate agents pledge themselves to protect and promote the interests of his or her client. This primary obligation does not relieve the real estate agent of the responsibility of dealing fairly with all parties to the transaction.”
iBuyers are not upholding the Code of Ethics because they don’t represent the seller’s best interest; they are only looking out for their own.
The reason sellers reach out to these companies is because they don’t understand this conflict of interest and how it impacts them. This lack of knowledge comes from not having a real estate agent coaching them. They need you to show them the true nature of iBuyers, including their word games and misrepresentations, by keeping them informed and educated.
Now more than ever, consumers need trusted professionals and advocates to help protect their interests and their investments. Brand yourself as that trusted professional in your market.
Darryl Davis has trained and coached more than 100,000 agents globally. He is a best-selling author of “How to Become a Power Agent® in Real Estate,” which tops Amazon’s charts for most-sold book to real estate agents. Davis hosts a weekly webinar to help agents succeed in changing times. Visit www.DarrylSpeaks.com/Online-Training.