19 min read Sep 25, 2022

iBuyer Reviews: Rankings, Pros, Cons, and Alternatives

Cover - iBuyer Reviews

» Jump To: Rankings | Reviews | iBuyer Companies: Pros and Cons | Buying Criteria | iBuyers Costs | Maximize Your Cash Offer | iBuyers NEAR Me | Alternatives to iBuyer Companies | Is Selling to an iBuyer Worth the Trade-off?

iBuyers, i.e. instant buyers or institutional house flippers, purchased 28,000 homes in just one-quarter last year. The 1.6% of homes sold in that quarter were purchased more than the then market value of the houses by iBuyers.

iBuyers are a great option to sell your house fast for cash. We have reviewed the best iBuyer companies based on our experience listing thousands of properties.

Rankings: Best iBuyer Companies & Marketplaces in 2022

ParameterHouzeoOpendoor Offerpad RedfinNow
Company Type
Marketplace where major iBuyers, local investors, and cash buyers submit offers
Institutional Home FlipperInstitutional Home FlipperInstitutional Home Flipper
Flexible Closing Date
Late Checkout Option
Trade-in Incentive
Listing Options
Mobile App
Customer Rating
⭐⭐⭐⭐⭐
⭐⭐⭐⭐⭐⭐⭐⭐⭐⭐⭐
Markets Served
Nationwide
452231
Service Fee
$349 Flat Fee
5% of Offer Price5% of Offer Price5%-13% of Offer Price
Repair Costs
Negotiable
Deducted from OfferDeducted from OfferDeducted from Offer
Cancellation Fees
None
None1% if 4 days after inspection reportNone if repair addendum is incomplete

What is an iBuyer?

iBuyer companies or iBuyers, where the “i” stands for “instant”— are using algorithms to set home prices and promising an end to packed house tours. iBuyers buy homes for cash directly by making an all-cash offer in 24–48 hours. They typically close in two weeks or less.

Selling to an iBuyer lets you skip the hassle and uncertainty of listing with a real estate agent and negotiating deals. You can skip the traditional route of facing home-selling intricacies such as advertising, marketing, staging, and other legwork in the real estate process.

The trade-off for a quick, convenient sale is that iBuyers don’t usually pay as much.

🏡 All the Benefits and No Trade-offs



Listing on the MLS is the best way to maximise your cash offer, negotiate sales price, and avail the best offer terms.


START YOUR MLS LISTING NOW

 

Reviews: iBuyer Companies & Marketplaces Reviews

We looked at iBuyer companies and marketplace reviews to find the best options in 2022.

IF YOU ARE LOOKING FOROPT FOR
BEST OVERALL 🎖️Houzeo ↗️
LARGEST IBUYER 💵 Opendoor ↗️
FAST CLOSING 🚀Offerpad ↗️
AS-IS IBUYER 🏚️RedfinNow ↗️
    💡 FACT: Home sellers on Houzeo have received offers from a variety of cash buyers, including iBuyers like Offerpad and Opendoor.

1. Houzeo.com

🎖️ Max Exposure to Cash Buyers

Houzeo

  • Service Fee: $349 Listing Fee
  • Available in 80+ U.S. Markets
  • 5 Stars 4.9/5 (out of 4081 reviews)

Houzeo is the best option if you’re looking for multiple cash offers. An MLS listing via Houzeo.com provides exposure to the max number of cash buyers. This includes Opendoor and Homevestors, who have recently submitted cash offers on Houzeo.

  • Service Fee – $349: Houzeo does not charge a 5% service fee or any undisclosed closing fee.
  • Maximum Cash Offer: Your property will get max exposure to cash buyers via the MLS. This includes major portals like Zillow, Realtor.com, and Redfin. All local and national cash buyers, including iBuyers, will be aware of your listing and compete for it.
  • Types of Properties: On Houzeo Marketplace, you can market properties in any condition and sell your house as is.
  • Flexible Closing Date & Offer Terms: You can specify and negotiate the cash terms you want for your closing.
  • Nationwide Coverage: Houzeo is available in 47 states across the U.S. so you can market to local cash buyers almost anywhere.

👉 Our Take: For sellers looking to maximize their cash offers, we recommend Houzeo’s Gold plan. It will get you maximum exposure to cash buyers via the MLS. You will also have Houzeo’s advanced features to negotiate the best terms for your cash offer.

» Houzeo Reviews: Learn why Houzeo is America’s Real Estate Super App

  • Near Nationwide Coverage: Houzeo covers 47 states + DC.
  • No Listing Agent Commission: With Houzeo, you only pay a small flat fee to get access to the MLS and all the Houzeo tech
  • 100% online: Easy listing, fast changes, online showings, and online offers
  • Max Exposure: Listings get syndicated to Zillow, Realtor.com, Trulia, Redfin, and 100s of other real estate sites
  • Fast Listing: Rush listing option gets you listed within a business day with Houzeo Concierge. This is best to sell your house fast.
  • Real Estate On the Go: Houzeo Mobile App mimics most functionality of the Houzeo web platform, including Offers and Showings
  • 5-Star Customer Service: Superb support that minimizes Houzeo complaints
  • No Hidden Fees: There are no Houzeo hidden fees

» Is Houzeo Legit: Learn more about Houzeo.com’s locations and services

Houzeo has a stellar rating of 4.9 out of 5 stars, with reviews on popular sites like Google & Trustpilot.

» Houzeo Reviews: Check out what customers have to say about Houzeo.com!

Houzeo is available nationwide with coverage in 200+ markets.

Introducing the Houzeo Mobile App!

  • View your listing
  • Manage your showings online
  • Review and compare offers
  • Counter an offer
  • NEW! Buyers can now search your property and save it in “Favorites”

Start Your FREE Listing NOW!

2. Opendoor

BIGGEST IBUYER

Opendoor

  • Service Fee: 5%
  • 📍 Coverage: 45 markets
  • Opendoor has 4.4 stars out of 5 4.4/5 (out of 2,897 reviews)

Opendoor is the country’s biggest iBuyer. They offer fast cash for homes and flexible closing timelines. Opendoor makes competitive offers, but these are far less than your property can get on the open market.

  • Service Fee: 5% of Home Sale Price
  • Typical Offer: 70% to 100% of Fair Market Value (FMV)
  • Types of Properties Purchased: Opendoor offers cash for houses only in desirable neighborhoods. If your property needs minimal repairs, Opendoor is an option for you. Otherwise, you may not even receive a preliminary cash offer from Opendoor.
  • Closing Date & Offer Terms: Opendoor provides a flexible closings, with dates up to 45 days out. Opendoor’s offers are not flexible, and final terms may change after home inspection.
  • Limited Coverage: Opendoor only covers 51 markets.

🚩 You Should Know: For the ease of a fast cash offer and flexible closing, you may pay up to 13% of your home’s sale price in service fees. Opendoor’s final cash offer is calculated after deducting home repair costs and closing costs.

👉 Our Take: Opendoor could be the best company to sell your house fast if they purchase properties in your zip code. Remember—an MLS listing on Houzeo.com will automatically put you in front of Opendoor and other iBuyers for an instant cash offer.

» Opendoor Reviews: Everything you need to know about America’s biggest iBuyer

  • Excellent for experienced home sellers with desirable properties
  • The repair cost breakdown isn’t disclosed in the offer
  • Not suitable for first-timers or FSBO sellers
  • The sales process may feel rushed, and the home seller has negligible control over the sale
  • The difference between Opendoor’s preliminary offer vs. final offer can be humongous
  • Home sellers receive cash offers within 24-48 hours, only on the properties that are in Opendoor’s coverage.

Opendoor has an average rating of 4.4 out of 5 stars on Reviews.io.

» Opendoor Review: Is Opendoor the best cash home buyer in 2022?

👎 Limited Coverage: Opendoor offers cash for houses only in 51 markets, and some of the top markets are Boston, Albuquerque, Cincinnati, Indianapolis, Birmingham, Modesto & Stockton, Galveston, Miami, San Francisco, San Jose, etc.

👍 Rankings of Local Cash Buyers: In case Opendoor doesn’t cover your zip code, you can consider local companies that buy houses for cash:

3. Offerpad

FASTEST CLOSING

Offerpad

  • Service Fee: 5%
  • Close in 10 days
  • Offerpad has 4.5 stars out of 5 on TrustPilot 4.6/5 (out of 165 reviews)

Known for its fast closing schedule, Offerpad is an iBuyer founded in 2017. Offerpad’s patented evaluation tool generates an initial offer price for the property based on housing market stats and insights from in-house real estate market specialists.

  • Service Fee: 5% of Home Sale Price
  • Typical Offer: 70% to 90% of Fair Market Value (FMV)
  • Types of Properties Purchased: Offerpad offers cash for houses only in desirable neighborhoods and for properties that need zero or minimal repairs. Distressed properties may not get a cash offer from Offerpad.
  • Closing Date & Offer Terms: Offerpad has the fastest closing schedule, with the earliest timeline being 7 days and up to 45 days out. Their offer terms are inflexible, and the initial cash offer terms may change after the home inspection.
  • Limited Coverage: Offerpad only covers 22 markets.

🚩 You Should Know: Offerpad’s final cash offer is calculated after deducting home repair costs and closing costs. For the ease of an instant cash offer and fast closing, you may pay up to 13% of your home’s sale price in service fees. Also, if you want to back out of the deal with Offerpad after accepting a cash offer, you will have to pay a 1% cancellation fee.

👉 Our Take: Offerpad can be considered if you need to sell quickly, and this iBuyer offers cash for houses in your zip code. Remember—an MLS listing on Houzeo.com will automatically put you in front of Opendoor and other cash house buyers.

» Offerpad Reviews: Is the Fast Closing Schedule Worth the Tradeoff?

  • In just 10 days, you can close your house sale with Offerpad
  • No need to fix or prepare the house
  • Long-term stay option for house sellers
  • Closing costs and service fees can add up to more than 10% of the purchase price in some situations, resulting in a lower cash offer than expected
  • 1% cancellation fees if you back out of the deal after acceptance

Offerpad has a 4.6 out of 5 stars rating on TrustPilot.

» Offerpad Review: Check out exclusive customer reviews of Offerpad

4. RedfinNow

AS-IS IBUYER

RedfinNow

  • Service Fee: 5% to 13%
  • Closing in 10 days
  • RedfinNow has 2.5 stars on TrustPilot 2.4/5 (out of 8 reviews)

RedfinNow, the “as-is iBuyer,” is the extended iBuying arm of Redfin, America’s largest discount brokerage firm. Unlike the other iBuyers, RedfinNow also buys vacant homes, so almost every homeowner may get reasonable cash offers.

  • Service Fee: 5% to 13% of Home Sale Price
  • Typical Offer: 70% to 90% of Fair Market Value (FMV)
  • Types of Properties Purchased: RedfinNow offers cash for houses irrespective of their condition, and even distressed properties and vacant houses will get an offer.
  • Closing Date & Offer Terms: RedfinNow provides a flexible closing date, up to 45 days out, and sometimes even as early as 14 days. RedfinNow’s offer terms are rigid and can change significantly after the home inspection.
  • Limited Coverage: Redfin is the second-largest iBuyer by coverage & covers 30+ markets.

🚩 You Should Know: This iBuyer company makes fairly competitive cash offers, but RedfinNow’s service fees may go up to 13% of the home’s sale price, which is a considerable cost to pay for the convenience.

👉 Our Take: RedfinNow looks appealing, but the service fee is directly proportional to the condition of your property. Houzeo’s MLS listing increases your chances of getting a better cash offer because investors scouring the MLS usually don’t care about the property’s condition and can offer more cash than this iBuyer.

» RedfinNow Reviews: Is RedfinNow the Best Cash Home Buyer in 2022?

  • Purchases properties as-is, with more stringent formalities than other iBuyers.
  • 90-day flexible closure window
  • RedfinNow service fees might be as high as 13% of the home’s sale price.
  • No incentives even if you trade in your home.
  • As a “late checkout,” you can rent your house up to 14 days from the final offer acceptance date.
  • Best for home sellers looking for a fast, predictable cash sale
  • RedfinNow’s representatives evaluate your home and make a cash offer on your house based on Redfin’s home pricing formula.

RedfinNow has a poor rating of 2.4 out of 5 stars on TrustPilot.

» RedfinNow Review: Check out exclusive customer reviews of Redfin Now

5. Zillow Offers

🛑 NO LONGER AVAILABLE

Zillow Offers

  • Service fee: 9% to 13%
  • Close in just 7 days
  • No credible reviews found.

🛑 CLOSED: Zillow Offers shut down in November 2021. Zillow stopped buying houses due to losses worth $881 million

Zillow, the largest real estate marketplace, launched an iBuying service called Zillow Offers in 2018 to enter the iBuying space. Zillow Offers was a quick option for eligible homeowners to get cash for their houses with a flexible closing timeline.

  • Service Fee: 9% to 13% of Home Sale Price
  • Typical Offer: 80% to 110% of Fair Market Value (FMV)
  • Types of Properties Purchased: Zillow offers cash for houses on pretty homes & land/lot properties in desirable locations. Home sellers with distressed properties may not receive Zillow’s cash offer.
  • Closing Date & Offer Terms: Zillow Offers provides a flexible closing date, up to 90 days. The offer terms are inflexible and may change after the home inspection.
  • Limited Coverage: Zillow offers cash for homes in 12 markets nationwide.

🚩 You Should Know: Zillow’s service fees can drastically rise to 13% of the home’s sale price, depending on the property repairs identified in home inspection. The service fee of Zillow Offers is quite high compared to other iBuyers and substantially higher than what the home seller would pay with a traditional real estate agent.

👉 Our Take: The fact that Zillow pays more than the house’s fair market value makes it attractive, but the inflated service fees and closing costs make this iBuyer a questionable choice.

» Zillow Offers Reviews: Check out the story of the rise and fall of Zillow’s iBuying arm, Zillow Offers

    • Flexible closing window (7-90 days)
    • Cash offer calculated with home evaluation tool, Zestimate.
    • Cash offer in just 24 to 48 business hours
    • Dedicated Zillow Offers advisors for every customer
    • Strict home eligibility criteria
    • Little to no opportunity to negotiate on price
    • Zillow’s final cash offer is calculated after deducting closing costs and service fees, typically 10% to 14%.
    • The average service fee of Zillow Offers is 7.5%, and it can go up to 13% – which is too high a cost to pay for the convenience, even higher than incurred during a traditional home sale.

👎 Zero Customer Reviews: Zillow Offers has no verifiable customer reviews on popular review websites like Google or Trustpilot.

👍 Houzeo Reviews: Houzeo is rated 4.9 out of 5 stars, with a 4.9 rating on Trustpilot and a 5.0 rating on Google.

Worth Considering: Home Trade-in Services

If you feel you won’t qualify for a home mortgage loan and need hard cash before buying your next house, then a home trade-in service will work wonders for you.

Home trade-in services like Knock and Flyhomes help you with the liquid cash so that you can move into your new home while the company lists your old home on the market. Settling the finances happens when the old home sells.

📙 Not Interested in Trading Homes?



Your call. Cash home buyers are always hunting for properties on the MLS, making it the best place to find your potential buyer.


START YOUR MLS LISTING NOW

 

» How to List on the MLSCheck out our guide on how to list on the MLS in 2022

Are iBuyer Companies Legit?

Yes— iBuyers are legitimate real estate companies that give you instant cash for your house. Cash offers vary based on price valuation models. With fast closing and instant cash offers, iBuyer companies are muscling on the traditional real estate model.

This convenience comes at a price. iBuyers offer 80% to 90% of the fair market value and operate in selective markets.

The service fees of iBuyers range from 5% to 13%. So, these companies may not be the best choice to maximize your cash offer.

iBuyers: Pros and Cons

Positive iBuyer Companies Reviews

✅ Quick, Hassle-free Sale

With a traditional model, you have to list on the MLS and wait for potential buyers. In the case of iBuyers, this is eliminated and house sale happens at light speed.

The speed of the sale makes cash house buyers appealing to home sellers in desperate need of liquidity.

✅ Fast Closing

iBuyer companies move faster than others because there is no longer a need for listing agreements, paperwork, or waiting for mortgage approval. Many companies offer to close as quickly as within 7 days.

✅ Certainty of Sale

When dealing with iBuyers, the chances of your transaction going astray are lesser compared to the conventional model of selling a house.

There is an assurance that your property will close and you will have hard cash in hand. No need to prep your home, list it on the MLS and wait for the right offer. Greater certainty that the deal won’t fall through due to financing makes iBuying a convenient alternative to traditional real estate.

    💡 FACT: Home sellers on Houzeo have received offers from major iBuyers, including Opendoor.

✅ No Upfront Costs

Whether it’s a traditional broker or a flat fee MLS company, a home seller still has to incur costs while listing the house and prepping for the sale. iBuyers will acquire your home as-is, especially RedfinNow, so you don’t have to spend money beforehand.

Required repairs, curb appeal, upgrading furniture, and staging are some elite expenses you avoid when you choose companies that offer cash for houses to get a top-dollar deal for your home.

Negative iBuyer Companies Reviews

⛔ Non-negotiable Cash Offers

iBuyers offer a take-it-or-leave-it deal. Although there may be room for negotiations, you can’t expect more than 90% to 100% of the market value of your home. This trend is changing as the different iBuyers are expanding their coverage and competing for 2022’s housing market inventory.

If you feel the company overlooked something important, some will allow you to make your case and submit additional evidence to support it; however, most will be unwilling to budge on price.

👉 IMPORTANT: When you list on the open market, there is an opportunity to negotiate offers and avail of competitive cash deals.

⛔ Lower Sale Prices

iBuyers generally pay 80% to 98% of the market value of your home, deducting all repair, utility, and re-selling expenses.

Since they want to sell this home on the open market, they will offer you marginal prices so that when they resell, they get a profit. These cash offers depend on the location of the property.

👉 IMPORTANT: In a sellers’ market, homeowners may be leaving cash on the table by dealing with iBuyers. Listing your house on the MLS is ideal because you can get 100% of the fair market value and even negotiate on the closing costs!

⛔ Strict Purchase Criteria

There are certain prerequisites a home must adhere to if an iBuyer is to buy it. Most iBuyers only offer cash for relatively newer properties (post-1930), worth less than $500,000-$600,000 and less than 1.5 acres. Because of the stringent purchase criteria, many homes don’t qualify for sale.

    💡 FACT: Distressed houses listed on the MLS may get better cash offers as long as one can reside in the property after purchase.

⛔ Limited Coverage

Since iBuyer companies operate in select U.S cities, you won’t get an offer if your property lies outside of their coverage.

iBuying is not a choice for the majority of Americans, and the need to get cash urgently has caused homeowners to sell their houses to buy houses for cash companies.

These cash home buyers only offer 50% to 70% of the fair market value of the house and exploit such desperate home sellers.

👉 IMPORTANT: If your home isn’t eligible to sell to an iBuyer, and you don’t want to sell it to a “we buy houses for cash company” like We Buy Ugly Houses, then you can work with a local real estate agent or a flat fee MLS service.

🚩 Cash Buyers May Try to Take Advantage of Your Situation



We buy houses for cash companies can sometimes take advantage of your situation giving you a low-ball offer. When you list on the MLS, you get unparalleled exposure to cash buyers and you can dictate terms instead of being dictated to.


Start Your MLS Listing NOW!

Understanding iBuyer Companies

The specifics vary by company but generally, iBuyer companies laud their ability to get you through the home selling or buying process quickly and conveniently.

Here’s how it works with the biggest iBuyer companies.

🚪 Selling a Home to an iBuyer

⭐ STEP 1- Submit information about your home online

Most companies prefer to collect basic information about the house through an online form or over the phone. As soon as the evaluation ends, you will receive an early estimate of cash offers.

⭐ STEP 2- Receive an initial cash offer

Once you get an estimated cash offer, you can choose to accept or reject it. These offers are generally non-negotiable, and the offer price is calculated by the iBuying company’s home valuation model.

    👉 IMPORTANT: Even if your property is eligible, it’s always a good idea to get an estimate from a local realtor to find out how much your home could sell for on the open market. Flat Fee MLS services like Houzeo.com let you list your house on the MLS in under 60 mins!

⭐ STEP 3- Complete a home inspection

If you accept the initial estimate, an onsite inspection is scheduled. A third-party inspector or a local representative from the iBuying company will complete the onsite inspection. If there will be any necessary repairs required then your final offer will be adjusted accordingly.

⭐ STEP 4- Review the final offer

After the inspection, repair costs and expenses are adjusted and the iBuying company makes a final offer.

If this offer meets your ideal requirements, then you just have to accept the offer, sign a purchase agreement, and schedule closing.

⭐ STEP 5- Close the deal

iBuyers provide more flexibility on timing. You even don’t have to wait for a bank to subscribe to a mortgage. In some cases, you may be able to close just within seven days.

😰 No Offer From Any iBuyer?



No problem! Cash home buyers are always hunting for properties on the MLS, making it the best place to find your potential buyer.


START YOUR MLS LISTING NOW

🔑 Buying a Home From an iBuyer

⭐ STEP 1- Submit an offer for your desired home

Once you know which property you want, you can take a private tour using the iBuying company’s mobile app or website, and submit your offer via a simple form.

⭐ STEP 2- Wait for iBuyer’s response

Once you’ve made your offer, wait for the iBuyer’s response. You should be able to get a reply within 24-48 hours.

⭐ STEP 3- Draft the purchase agreement

An agent can help with drafting a purchase agreement.

⭐ STEP 4- Review and sign the purchase agreement

You can review if the agreement is correct, sign the purchase agreement and decide on a closing date.

⭐ STEP 5- Schedule an inspection

A third-party inspector or a local representative from the iBuying company will accompany you while you complete the onsite inspection. You can negotiate the repairs and closing costs during this meeting.

⭐ STEP 6- Close the deal

iBuyer companies provide more flexibility on timing. You can close within 14-45 days.

Which Homes Qualify for Most iBuyer Companies?

Each iBuyer has different purchase criteria but typically iBuyers only purchase owner-occupied homes, that may require minimal or no repairs.

Generally, the purchase criteria of iBuyer companies are similar.

  • Home types: Single-family homes, Townhouses, Duplexes, Condominiums
  • Year built: After 1930
  • Lot size: Maximum lot size of 1–2 acres, depending upon market
  • Value: Between $100,000 and $600,000 (but can be as high as $1.4 million in some markets)
  • Occupancy: Owner-occupied

IBuyers could make exceptions in some markets, so it’s best to request an offer from an iBuyer near you. Several iBuyer company reviews mention that the homes which don’t qualify end up on the open market.

How Much Will iBuyers Offer for My Home?

Using advanced technology, iBuyers project a home’s value through AVMs (Automatic Valuation Models).

An AMV will use a large pool of data to analyze the strengths and the pitfalls of a property, check historical price trends and determine the value of a property.

📈 Price Valuation Models of iBuyers

An iBuyer or iBuying company uses its proprietary algorithm to price homes and make offers based on local sales data while ensuring they calculate re-selling profits. The company will decide whether your home is worth purchasing based on millions of data points and decade-long historical price trends, as Opendoor has explained in their blog.

Essentially, technology and data go hand-in-hand while calculating your home’s worth. Traditionally, real estate professionals or brokers viewed local sales data and determined the appropriate listing price. AMVs work exactly like that, only fast and effortless.

It also depends on how easy it will be to sell your house. Instead of buying low like we buy houses for cash companies, and renovating to sell at high rates, iBuyers focus on homes that only need a little bit of work– so they can sell them quickly, without any additional investment.  

Since they have so much capital, they can focus on easy sales and volume to make money. After that, the iBuyer makes an offer to give you cash for your house.

Usually, iBuyers offer 80% to 98% of the house’s fair market value. This value rose to 104.1% in 2021 and will keep rising as iBuyer companies continue to expand in more markets.

The question remains, will the service fees also rise as iBuyer companies expand their reach?

    👉 IMPORTANT: You can get 100% or more than the fair market value if you list your house on the open market. Flat Fee MLS services like Houzeo.com let you list your house on the MLS in under 60 mins!

How to Maximize Cash Offers from iBuyers?

Market to Maximum iBuyers Simultaneously

You could maximize the potential cash offer for your property if you market it to multiple iBuyers at the same time. Listing on the open market is the fastest way to get traction from iBuyers. All major iBuyers have submitted offers on Houzeo properties.

Get Small Fixes Done Yourself

iBuyers make a preliminary cash offer after a virtual walk-through of your property. If there are notable repairs or issues found during the on-site inspection, iBuyer companies tend to lower the cash offer. You can evade a lower cash offer by making repairs on your property.

Support Your Numbers with Data

iBuyers use AVMs to calculate the worth of your property when you request a cash offer. If you invest time in checking the local sales data of the housing market, you will understand how much your home is worth. This positions you to negotiate the cash offer with iBuyer companies, giving you an edge in your home’s sale.

Costs of Working With an iBuyer Companies

💵 Service Fees

The iBuyer company charges you the service fee for a hassle-free, convenient sale. The service fee for Offerpad and Opendoor is 5% of the sale price, lest the typical closing costs that the seller pays for any real estate transaction, such as escrow fees and title insurance.

iBuyers estimate those closing costs at 1% to 2% of the sale price. The service fees also don’t include these costs and they are deducted from your net proceeds. Several iBuyer reviews mention that this fee isn’t negotiable and often increases to as high as 13%.

If you’re selling a home the traditional way with a real estate agent, you’ll typically pay a 5% to 6% real estate agent commission, which is usually split between the listing agent and buyer’s agent.

You can also list your house on the open market while waiting for an offer on your home from an iBuyer. In that case, you’ll need to pay your agent’s commission as well as the iBuyer’s service fee.

    👉 IMPORTANT: You can save the 3% listing agent commission if you use a Flat Fee MLS service like Houzeo.com and list your house on the MLS yourself!

💰 How Much are iBuyer Fees?

iBuyer companies’ reviews of RedfinNow and Zillow report 7% to 8% service fees. But, they can be as high as 13%.

Generally, you’ll also have to pay for closing costs (1%-3%) and repairs (1%-2%).

Opendoor5%
Offerpad5%
RedfinNow5%-13%

📨 Don’t Want to Pay 5% Service Fees?



Good call. You can get a cash offer on the open market without having to pay 5% service fees. Houzeo.com is the fastest, cost-effective way to list on the MLS seamlessly!


START YOUR MLS LISTING NOW

💲 Opportunity Costs

iBuyers have strengthened their offers in the wild housing market.

In the first half of 2021, iBuyer offers an average of 104.1% of market value. In contrast, the offers averaged just 97.6% of market value in 2020.

The report compared offers from Offerpad, Opendoor, RedfinNow, and Zillow Offers to automated valuation model prices.

While they’re paying higher prices, iBuyers are also selling houses for more money. The median price appreciation for iBuyer transactions — the difference between what they paid and how much they sold the properties for — was 8.1% in the first half of 2021, up from 4.7% in 2020, according to real estate analyst Mike DelPrete.

    👉 IMPORTANT: 2022 is an unusually strong seller’s market, so it may be possible to sell your home for more than what iBuyers offer, even if their offers are above market value. Save 3% listing agent commission and list your house on the MLS within 60 mins!

How Do iBuyers Make Money?

iBuyer companies purchase houses that can be resold for a small profit on the open market. They leverage sales data and their pricing models to provide home sellers with instant offers on their houses.

As part of the iBuyer business model, these companies also charge a service fee for the speed and convenience they offer. Opendoor and Offerpad, the two largest iBuyers, charge 5% of the sale price, while RedfinNow charges a variable fee that can be as high as 13%.

This service fee helps to offset the iBuyer’s carrying costs (utilities, property taxes, expenses, etc.) and ensures profitability in the long run.

iBuyers also have a revenue stream through offering other home buying and selling services like title insurance, mortgages, financing options, etc. Some iBuyers also sell your contact details as “leads” when you request a cash offer.

So, iBuyer companies have three revenue streams essentially:

  • Service fees
  • Re-selling homes on the open market
  • Selling leads

This is why home sellers who are in a rush to close fast and need cash urgently prefer iBuyers. iBuyer companies’ reviews also paint a similar picture. Sellers who want to close hassle-free enjoy the experience.

💲 Don’t Need Cash Urgently?



Retail buyers who finance their home purchase pay the maximum. If you don’t need cash right away, you can maximize your sale price by letting buyers finance the home purchase. Listing on the MLS is the best way to reach these buyers.


List on the MLS NOW!

How to Find iBuyer Companies Near Me?

iBuyers operate in limited markets, so getting a cash offer from an iBuyer will be tricky if your property lies outside of their coverage.

🏢 Company📍 Coverage
HouzeoNationwide coverage with 80+ markets
Opendoor21 states with 45+ markets
Offerpad16 states with 22+ markets
RedfinNow11 states with 22+ markets

Other Ways to Sell Your Home: iBuyer Alternatives

If your property lies outside the coverage of iBuyer companies or doesn’t pass their eligibility criteria, then you have a few alternatives. iBuyer companies reviews mention that iBuying isn’t an option for

📈 Listing on the MLS

There is a chance to yield the highest sale price when you list on the open market. However, the downside is that the process will be slightly slower than the iBuying companies.

Local real estate agents price homes reasonably and want to get maximum value for their client’s houses. Local sales data and housing market trends help them arrive at a competitive listing price for the house.

Even if you decide that you only want a cash offer on the house, you have a couple of options:

  • List your home “as is,” with the help of an agent, and attract real estate investors who are hunting for homes on the MLS.
  • Working with an agent connected to house flippers and landlords looking for new deals.
    👉 IMPORTANT: 2022 is an unusually strong seller’s market. It’s possible to sell your home for more than what iBuyers offer because the housing inventory has never been lower ever before! Save 3% listing agent commission and and list your house on the MLS within 60 mins!

🤑 “We buy houses for cash” Companies

These cash home buyers are conventional in their approach, unlike iBuyer companies.

With an all-cash offer, they buy distressed houses such as homes facing foreclosures, inherited homes that need repairs, or couples going through a divorce.

These local cash buyers will offer a cash deal, but only about 30% to 50% of your home’s fair market value. They are looking for a way to make more money by re-selling the property with minimal expenses for repairs.

It’s possible to get 70% of the fair market value of the house if it isn’t in an extremely poor condition or the property location is remotely accessible to the city.

» Cash Buyers: Check out America’s best “We Buy Houses for Cash” Companies

Should You Sell to an iBuyer?

Depends on your priorities.

iBuyers are excellent for frantic home sellers who need cash urgently. These iBuyer companies are geared to make the home selling simple and convenient while bypassing the uncertainty and hassles of home listing, marketing, and showings.

iBuyer reviews depict that the convenience and lightning speed of the sale is unparalleled compared to other options when selling your house on the open market.

We’ve seen in many iBuyer reviews that iBuyers offer free, no-obligation offers, so it’s worth requesting and seeing how much an iBuyer would be willing to pay for your home. If you aren’t content with the offers you get, you can work with a realtor.

You can save on the 3% listing agent commission entirely if you sell your house as an owner with a Flat Fee MLS service like Houzeo.com!

💸 Maximize Your Cash Offer



In America, 90% homebuyers start online. Houzeo.com syndicates your MLS listing to thousands of real estate websites like Zillow, Trulia, Realtor.com, and Redfin.


START YOUR MLS LISTING NOW

Frequently Asked Questions about iBuyer Companies

1. What is an iBuyer in real estate?

An iBuyer is a company that purchases your property instantly with an estimated cash offer. You don’t have to worry about most of the home-selling intricacies such as listing, advertising, showing, and even marketing your home. Instead, they’ll provide you with a projected value of your property through data—involving your home’s condition, age, and location. Within a few days or weeks, you can immediately get your equity on your preferred closing date.

2. What are the most prominent iBuyers out there?

As per iBuyer reviews, iBuyers could sell your home fast and easily. Opendoor is the largest iBuyer in the US, followed by Offerpad and RedfinNow. Zillow Offers shut down in 2021 owing to huge losses. And Houzeo? It's the best platform to list your house on the MLS so that you can market it to potential cash home buyers.

3. Which iBuyer pays the most?

If you’re talking about who provides maximum returns, Houzeo can help you save a fortune. By numbers, the service charge can only vary from 0% to 2.5% in buyer agent commission, all the while saving sellers a great chunk of 3% to 6% commissions. Not to mention the efficiency of their processing sale and maximum exposure your home gets. Listing your home on the MLS to different websites like Zillow, Realtor, Redfin, Trulia, and more! In 2021, we saw a surge of offers of almost 100% of fair market value made by Opendoor, Offerpad, etc.

4. How does iBuyer companies work?

iBuyer companies focus on properties in great condition providing a fair market value offer. The repairs and improvements, as much as possible, would be minimal just to keep the good condition of the home prior to finding a prospective buyer.

5. How can I list my home to iBuyer?

You can try an alternative way through using Houzeo’s Flat Fee MLS listing plan with a wide range of services. From basic to premium options, you can pick services that aid your only needs. After that, you just need to fill out all the necessary documents and sign the agreement. Within 24-48 hours, your home is now available on the market. You can save up to 100% real estate commissions!

6. How do we assess and compare the best iBuyer site?

To determine the best iBuyer site available, we need to consider what’s important to homeowners when selling their property for cash. (1) Sellers want the most profit in a sale – 50% of the sellers consider home sale price as a vital factor; (2) Sellers want to control their transactions – most sellers today want more control over their real estate transaction; (3) Sellers want to save time – the time is of utmost importance which means more time can mean more burden.

7. Which iBuyer is best?

Based on a website review framework and careful assessment, here are the top prominent cash home buyers and listing companies available on the market: 1. Houzeo, a marketplace where cash home buyers make competitive cash offers, 2. Opendoor, 3. Offerpad 4, RedfinNow, and 5. Zillow Offers

8. What does iBuyer stand for?

A short term for “instant buyer”, an iBuyer real estate company can purchase a property directly from sellers. If you wish to skip the fuss of meeting with buyers and agents, iBuyer offers a more convenient way to market your property. iBuyers based their ultimate goal of selling a house on these three major factors: 1. Maximum Proceeds, 2. Time to First Offer, 3. Process Efficiency.

9. What are the pros of using an iBuyer?

Opting to choose an iBuyer is choosing for speed and convenience in selling a property. Especially for sellers, the overall process can be exhilarating. And with the use of an iBuyer, the complex part of marketing a home can be dealt with ease. You also don’t need to pay for a listing agent which cuts of 6% of the cost in commission. Of course, this is an option perfect for sellers who are in a hurry or don’t have time for the tedious process of selling a home.

10. What are the cons of using an iBuyer?

Although there’s considerable leverage in choosing an iBuyer, there’s also a downside you have to be aware of. Since you’ve given full control of your property’s value, that normally means you will get below the fair market value. Also, expenses for minor home improvements and repairs can be costly as well. After all, convenience and speed in selling a home come at a great price.

Related Keywords: ibuyer reviews, ibuyers review, buying companies, cash house buyers, cash buyers, cash home buyers, opendoor reviews, offerpad reviews, redfinnow reviews, ibuyer, house flippers at scale, home flippers, institutional house flippers, i buying companies, i buying,

Flat Fee MLS For Sale By Owner Listing & Marketing

Save $20

On Silver & up plans

Use Coupon Code:

Copied
Need help? Call us on
(844) 448-0110