By Alex Camelio

I recently ran a poll in our Facebook group about iBuyers, and most agents who responded said that direct buyers and iBuyers haven’t made a big difference in their businesses. However, nearly 40 per cent of consumers would consider an iBuyer offer. That means that while you may not be feeling the power of the big money behind iBuyer models, it’s there and those cash offers and quick transactions that iBuyers offer represent a never-before-seen change in the industry.



I’ve talked to quite a few agents about this, and their responses to this change seem to be across the board. From, “They’re going to destroy the industry” at one end of the spectrum all the way to “They’ve helped me make a bunch of money” at the other end and everything in between.

I wanted to find out exactly what’s changing, and what that means for you as a real estate agent, so I went directly to an agent who is working with iBuyers to make himself and his team more money. To help us get the facts straight we have a special interview with Kenny Klaus – a top-performing real estate agent and team leader in Phoenix who has successfully incorporated iBuyers into his business.

Don’t have time for the full interview? Here are five points you shouldn’t miss.

1. iBuyers = cash offers.

At the core, iBuyers give home sellers direct access to cash (or immediate) offers for their home. So treat them just like you have a handful of investors in your back pocket – because you do! Just because a seller can get a cash offer doesn’t mean they want to replace their trusted advisor. If anything, sellers want their trusted advisor to educate them about all of their home-selling options, and that should definitely include an immediate offer, even if it’s not the one they decide to go with. If you don’t tell them this option is available and they find out on their own, you’re going to lose credibility and may even look like you’re hiding something.

2. Get educated.

Kenny made a great comment during our interview: “Don’t let them eat your lunch. Go eat lunch with them.” iBuyers are becoming an important part of the market and it doesn’t look like they’ll be going anywhere anytime soon. Agents that are embracing the change have been able to make more money by working with iBuyers, instead of against them. When you can’t fight ‘em, join them! So take some time to meet any iBuyers who are working in your area.

3. Face it head on.

When Kenny and his agents started bringing up iBuyers in their listing presentations, sellers would often go get the print-out for the immediate offers they had already received online. What’s worse is in some situations we’ve heard about sellers not working with an agent because they had already received an offer online and the agent didn’t even bring it up as an option. Instead of trying to hide iBuyers from consumers, your best bet is to make them part of your process and discuss them directly and honestly (see Takeaway #1).

4. “Offer conversations” instead of listing presentations.

Within Kenny’s team, they’ve changed their approach from using a classic listing presentation to what he calls an “offer conversation.” They’re able to use immediate offers from iBuyers as part of the discussion for selling a home. Then, after presenting the available offers he also discusses the other options for listing the home and what might be best for the seller. This is a great way to both position yourself as an expert and differentiate yourself from other agents in your market.

5. Sellers are buyers.

In many cases, people selling their home also need to purchase another home. Whether or not they’re using an iBuyer to sell their home, you have an opportunity to work with them on multiple deals. Don’t forget that!

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As the CEO of Agent Inner Circle, Alex Camelio focuses on the development and growth of the community. Prior to selling his company to Lone Wolf Real Estate Technologies, Alex was the co-founder and president at Barcode Realty. Within the real estate community, he has been recognized internationally as an expert in technology, marketing and entrepreneurship and has presented for various national organizations.

4 COMMENTS

  1. Really good interview. Thank you so much! I’ve been in the dark about iBuyers and found this very helpful. One note to you, Alex…maybe you should get a cough button… It was pretty jarring every time you coughed. ;)

  2. I read articles on this site often, and like to share helpful information. Many new platforms are being introduced in our industry, and it’s nice to be able to separate hype from something substantial.

    This iBuyer sounds very similar to realtors offering “guarantee sale of your home” , and that has been around for years. I don’t believe that has been very successful.

    Below is an article from Forbes.com.
    “ While iBuyers provide the convenience of selling quickly, matching expert investors against consumers isn’t always the best thing for the consumer. Zillow recently explained that 90% of sellers (paywall) who engaged its Instant Offers platform decided against the iBuyer offer and chose a traditional agent instead. If 9 out of 10 consumers pass, the pricing can’t be that compelling. Choice is good, but a home is generally your largest asset, so you may want to consult an expert before “iSelling.”

    • Thank you, as always, for your wise comment. This article sounds (once again) very American the mention of “cash offers” (in the USA that seems a big deal ) and the reference to Zillow. I had an offer on my US property from what could have been considered and iBuyer, sight unseen, cash offer – and of course a silly low-ball price. Thanks again for all your valuable posts and Merry Christmas to you and yours. Sabine

      • This topic once again comes back to educating the public. I couldn’t begin to say how many calls I personally got over the years where pretty much the first words out of the buyers’ mouths were something to this effect: “as an agent you would understand how important it is that I am an all cash buyer, so that should be worth something to your seller.”

        Really? And of course the education opportunity began: Thank you for calling and for your theory. Here is how it works in real life real estate: Any seller anyplace truly doesn’t care where the money comes from. When a buyer comes with a ready to buy mortgage already approved guess where that approved (subject to a bank appraisal) mortgage money is going to go… straight into the hands of the seller. All cash. So are you saying that your all cash offer is worth more than the sum total of the money the bank provides is worth less in theoretical value.
        Response: “oh, I never thought about it from that point of view. I thought my all cash offer would outbid someone as a buyer requesting the seller to hold a mortgage.

        “Sir: that’s called (then) a VTB (vendor take back mortgage) and that hasn’t been seen in years. Clearly you haven’t bought or sold properly in recent years “

        His come back was always: “But I paid good money for a course from this American company who instructed always to offer all cash to get the best deal.”

        There you have it. He was telling the truth as he had been educated by foreigners allowed to teach these methods of doing business in Canada. We can’t blame him for wasting his money and trying to convince an agent that such a deal would be worth savings to the buyer, and have plenty of appeal to a seller (particularly one in distress).

        Millions have been spent on these courses and now more millions when taking the courses on line.

        To our American neighbours south of the 49th: we do business differently here. No seller here cares where the would-be all cash or mortgage money comes from. And in nearly four decades I only saw a couple of VTB’s. But there were rate buy-downs aplenty when rates were 18-23 percent. And the oldies will likely remember we still sold plenty of properties even when rates were over the moon.

        Carolyne L

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