Here’s how much it will cost you to sell your home on an iBuying site.

Here’s how much it will cost you to sell your home on an iBuying site.

The increased costs may be worth it to some sellers, study says

August 09, 2019 02:38PM
Gary Keller of Keller Williams (Credit: iStock and Wikipedia)

Gary Keller of Keller Williams (Credit: iStock and Wikipedia)

Real estate companies from Zillow Group to Keller Williams have jumped on the nascent iBuying craze. But what’s the cost to home sellers who sell their homes with these services?

An extra 13 to 15 percent.

That’s according to a new study from data firm Collateral Analytics, which aimed to put a price tag on the cost of using iBuying platforms, which allow buyers to purchase homes instantly online, Inman reported.

However, if selling a home with an iBuying company may tack on extra fees compared to traditional brokerages, among other costs, the service may be worth it. “For some sellers, needing to move or requiring quick extraction of equity, this is certainly worthwhile, but what percentage of the market will want this service remains to be seen,” the study concluded.

Demand for the service is a question playing out in real time, as traditional brokerages like Keller Williams work to launch their own iBuying platforms in an effort to cash in on the craze, pioneered by startup Opendoor.

In the second quarter, Zillow’s revenues ballooned 84 percent to almost $600 million, thanks in part to the launch last year of its iBuying program, Zillow Offers. But the new product also had a cost for Zillow, which saw its losses come in at $72 million in the second quarter, versus $3 million in 2018.

Instant homebuying also has some risks, the study found. These include vacant properties becoming more susceptible to break-ins and the portals’ valuation models overvaluing properties owned by more informed sellers. [Inman] — Mary Diduch 

Rough quarter: Resi sales fall in Broward, increase slightly in Miami-Dade

Total sales volume fell in Miami-Dade and Broward

(Credit: iStock)

(Credit: iStock)

It was a rough quarter for residential sales in Miami-Dade and Broward County.

Sales either fell or rose marginally in the second quarter, year-over-year, according to the Miami Association of Realtors. Home prices kept rising, but at a slower pace than before.

Miami-Dade
Total residential sales in Miami-Dade increased ever so slightly, up 0.6 percent, year-over-year, to 7,861. Single-family home sales rose 1.8 percent to 3,854, and condo sales declined 0.6 percent to 4,007.

Residential sales volume totaled $3.6 billion in the second quarter. Both single-family home sales volume and condo sales volumed fell year-over-year.

The median price of single-family homes in Miami-Dade increased 2.9 percent to $360,000. The median condo price increased 2.5 percent year-over-year to $247,000.

Broward County
Single-family home sales rose by 2.7 percent year-over-year, to 4,666 closings, while condo sales declined by nearly 6 percent to 4,805 sales. Total residential sales came out to 9,471, a 1.8 percent drop year-over-year.

Total sales volume in the second quarter totaled $3.3 billion.

The median price for single-family homes increased to $365,000, up 1.6 percent. Condo prices rose as well, up 3.26 percent to $175,000 year-over-year.

April resi sales flat in Palm Beach, up slightly in Miami and Broward

Price growth is slowing across three counties

Miami skyline (Credit: iStock)

Miami skyline (Credit: iStock)

Miami-Dade

After a rough first quarter, residential sales in Miami-Dade increased slightly in April, up 1.1 percent year-over-year to 2,629 closings. The total sales volume in April was $1.23 billion, compared to $1.19 billion a year earlier.

Single-family home sales rose nearly 4 percent to 1,265, while condo sales decreased by 1.4 percent to 1,364, according to the Miami Association of Realtors. In March, condo sales rose sharply, up 18 percent year-over-year.

Prices increased as well, up 3.2 percent in April for single-family homes to $356,000, and up 2.8 percent to $248,000 for condos.

Broward

Residential closings rose in Broward as well, increasing by 4.4 percent year-over-year to 3,141 sales. That’s thanks to an 11.8 percent jump in single-family home sales, up to 1,541 closings. Condo sales in Broward fell by nearly 2 percent to 1,600 closings.

The total sales volume passed the $1 billion mark, totaling $1.1 billion in April, up from nearly $987 million.

Despite the jump in single-family home sales, the median price of a house rose only 1.3 percent to $360,000. The median price of condos increased by 5.3 percent to $170,000.

Palm Beach

Residential sales were essentially flat year-over-year in Palm Beach County, increasing by 0.03 percent or one sale. Single-family home sales rose to 1,714 closings, up 1.4 percent. Condo sales fell by 1.6 percent to 1,384.

Sales volume also remained flat at $1.4 billion, as did the median price of single-family homes, which was $350,000 in April. Condo prices increased slightly, by 1.8 percent, to $185,000.

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Minto opens Westlake project to the public

Minto Communities held a ribbon-cutting ceremony at Westlake’s grand opening.
The grand opening on Saturday for Westlake in Palm Beach County attracted hundreds of people, including some who bought homes at the 3,800-acre development. Minto Communities, the developer, opened the development’s sales center to the public along with six model homes at The Hammocks, the first neighborhood at Westlake.
Mike Belmont, president of Minto Communities USA, told the Palm Beach Post that the company sold about 20 homes Saturday. Prices start at $276,990 for homes with the Sage-model floor plan. In addition to thousands of homes, the master-planned Westlake development eventually will have 2.2 million square feet of non-residential properties, including restaurants, retail stores and schools. [Palm Beach Post] – Mike Seemuth

Source: The Real Deal Miami