Non-Traditional Home Buyers

An iBuyer is an online real estate company that makes quick, all-cash offers on homes, bypassing the traditional process of using a real estate agent and a lengthy closing period. They are a technology-driven option for sellers who prioritize speed and convenience over getting the highest possible price. What separates an iBuyer from a cash buyer is the fees and commissions.

iBuying is still relatively new; many iBuyers operate only in select cities and only purchase homes that meet specific qualifications.

To receive a quote, enter your address and basic home information on the company’s website and, based on these details and comps in your area, its algorithm will generate a preliminary cash offer within minutes.

One study found that home sellers who use iBuyers pay 13%-15% more in fees and make about 11% less than owners who sell to a traditional buyer using a Realtor.

Companies that offer to purchase your home for cash often make promises that seem too good to be true. Zero Fees And No Repairs Needed. Get A Fast and Fair Offer in 48 Hours or Less. Save Time & Hassle: no showings, staging, waiting, negotiating, commissions, or repairs. The entire deal can be closed and completed within a couple of weeks.

The catch is that these companies need to make a profit themselves, so they are almost sure to offer a lower price than you would get using a Realtor. There’s usually no room for negotiation, and these offers typically expire quickly. If you accept one of these offers, there will be paperwork to sign — read it carefully!

Should you sell your home for cash or to an iBuyer? It all depends on your priorities. Which is more important to you, speed or profits? If your house needs serious repairs you can’t afford, or if you need the money ASAP, companies that pay cash for houses can be a good option. But if the house is in good shape and you’re not in a rush, you are likely to make more money with a knowledgeable real estate agent on your side.