Real estate is a very exciting and prosperous industry with many interesting roles. The most important element in buying. Thanks to the technological advancement in the world now there’s a new set of buyers: the iBuyers. Selling and buying property can be painfully complex. The idea of a simpler, more convenient, and more certain real estate transaction has led to a new way to buy and sell real-estate properties. The Indian real-estate market is reaping great benefits thanks to the technological advancement in the global real estate sector. Many new technologies are introduced in the global real-estate market like iBuyers, Virtual Tour, etc and soon will be adapted by the Indian real-estate sector.
The global real estate market size is expected to grow from $3386.11 billion in 2021 to $3741.06 billion in 2022 at a compound annual growth rate (CAGR) of 10.5%. The growth in the market is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to limited containment plans involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The real estate market is expected to reach $5388.87 billion in 2026 at a CAGR of 9.6% and PropTech is contributing extensively to it.
ibuyers: The paradigm shift in real estate market
iBuyers are companies that purchase homes outright, directly from the owner. The seller doesn’t have to pay an agent, list the home, stage it, market it, or even show it to potential buyers. Instead, they tell the iBuyer about the property and, using data and mathematical algorithms, the iBuyer predicts the home’s future value.
How iBuyers operate varies, but the underlying idea is that a company estimates the value of your home and makes an offer. If you accept, they take in the responsibility of owning, marketing, and reselling the home. Depending on the service you choose, the benefit is the certainty of an all-cash offer and more control over when you move in or move out.
How does iBuying work?
Not all iBuyers share the same business model or offer the same services. Think of iBuyers as a full-service real estate company where one can buy, sell, and trade-in homes. One can also integrate other services like title, insurance, repairs, and financing so iBuyers can lower the costs of moving and make the process more efficient. iBuyers typically focus on homes in good condition and if not they firstly focus on the repair and then put the property on market. They aim to make an offer in line with what a reasonable buyer would pay, commonly referred to as fair market value.
Takeaways: Technological advancements have resulted in significant advances in the functioning of buying and selling platforms. Real- estate operations and accessibility have grown considerably easier and more user-friendly for everyone involved in the industry. iBuyers use technology to quickly make an offer for properties. If you accept, they assume the risk and holding costs of finding a buyer so you can have a simpler, more convenient, and more certain sale. This represents a dramatic shift in the way people are buying and selling homes, offering an alternative to the pain points of the traditional process. iBuyers are a good option if you don't have the time or desire to market your home using an agent, the convenience is worthwhile, especially if you need to move in a hurry. Most offer no-obligation offers, so you can approach multiple iBuyer programs, consider getting offers from more than one to get the most for your property.
The Indian Real-Estate market has seen a significant change since the inception of PropTech. iBuyers are in great demand in foreign countries and just like the U.S. introduced fractional investment and now it is trending in the Indian real-estate sector we will see iBuyers companies in the Indian market very soon.
