Ibuyer

· 2 min read
An iBuyer is a company that uses algorithms to make you an instant cash offer on your home — no staging, no showings, no waiting…

An iBuyer is a company that uses algorithms to make you an instant cash offer on your home — no staging, no showings, no waiting for a buyer to come along. Opendoor and Offerpad are the biggest names in the space, though the industry has shrunk since its peak.

How iBuyers Work

You enter your address on the iBuyer’s website, answer some questions about your home’s condition, and receive an offer within 24-48 hours. If you accept, closing happens on your schedule — often within two weeks. The iBuyer then does minor repairs, relists the home, and sells it for a profit.

The offer is generated by an automated valuation model (AVM) that analyzes comparable sales, market trends, and property data. A human analyst usually reviews it before it goes out, but the heavy lifting is algorithmic.

What It Costs

iBuyers charge a service fee of 5-6% — similar to traditional agent commissions — plus repair costs that they deduct from your offer. After fees and repair credits, most sellers net 5-10% less than they would on the open market.

On a $400,000 home, that means $20,000-$40,000 less in your pocket compared to listing with an agent. The convenience premium is real.

Who It Works For

Speed and certainty are the selling points. If you’ve already bought your next home and need to close fast, if you’re relocating for a job with a tight deadline, or if you simply can’t deal with the hassle of listing — an iBuyer offer eliminates the uncertainty.

It’s not great for unique or high-value properties. iBuyers target cookie-cutter homes in the $200,000-$600,000 range in specific metro areas. They avoid older homes, rural properties, and anything that’s hard to value with an algorithm.

The Smart Move

Get an iBuyer offer and a traditional CMA from an agent. Compare the two numbers side by side. If the iBuyer’s net offer is within 2-3% of what you’d get on the open market, the convenience might be worth it. If the gap is 8-10%, you’re probably better off listing traditionally.

Use the net proceeds calculator to compare both scenarios, and check the selling guide for more on choosing the right selling method.