19 min read Jun 14, 2022

iBuyer Reviews: Rankings, Pros, Cons, and Alternatives

Cover - iBuyer Reviews

iBuyers, aka 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 of listing thousands of properties.

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Rankings: Best iBuyer Companies & Marketplaces in 2022

Parameter🎖️ Houzeo💵 Opendoor🚀 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 HOME BUYERS
  • Listing Fee: $329
  • Available in 80+ U.S. Markets
  • 5stars4.9/5 (out of 3,196 reviews)

Houzeo is the most popular platform for sellers looking for affordable full-service companies. Houzeo.com’s cutting-edge technology gives you complete control of the sale, exposes your property to multiple cash home buyers, and enables you to sell your home at a competitive cash deal.

🏡 Should I list my house on the MLS with Houzeo?

  • Maximum Exposure to Cash Home Buyers: Houzeo.com provides unparalleled exposure for your property when you list on the MLS. Cash home buyers hunt for properties on the open market, and Houzeo.com brings your property into the limelight for these cash buyers.
  • Best Price for Your Cash Sale: When you list with Houzeo.com, your MLS listing gets syndicated to thousands of real estate websites like Zillow, Trulia, Realtor.com, Redfin, etc. This syndication gives your property unparalleled exposure to multiple cash home buyers simultaneously. In such a competitive buying market, you have an opportunity to close at the best price.
  • Best Offer Terms for Your Cash Sale: Houzeo has limited restrictions, so your sale’s legal terms and conditions can be pretty adjustable. In the case of cash home buyers, you can finalize the house sale with reasonable moving-out timelines and closing dates.
  • Proven Track Record with Cash Home Buyers: Houzeo has seen many cash home buyers, and iBuyers like Opendoor and Offerpad make competitive cash offers on properties listed on Houzeo.com.

Best For: Home sellers seeking maximum cash for their properties with zero hidden fees, 100% automated process, and timely customer support from Houzeo Concierge.

🚀 Register With Houzeo & Save 20%: Complete the listing formalities in <60 mins & market to cash buyers!

  • Nationwide coverage
  • Savings on commissions
  • 100% online – easy listing, fast changes, online showings, and online offers
  • Listings get syndicated to Zillow, Realtor.com, Trulia, Redfin, and 100s of other real estate sites
  • Quick listing (within a business day with Houzeo Concierge)
  • Mobile app availability

Houzeo has a 4.9 out of 5 rating on Google & Trustpilot.

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
  • 💲 Service Fee: 5%
  • Available in 40+ cities
  • 4.4 stars 4.4 / 5 (out of 2,509 reviews)

Opendoor is the country’s best and largest instant Buyer (iBuyer), offering instant cash offers on homes. Founded in 2014, Opendoor is the first iBuyer to introduce the iBuying model of instant cash for homes.

Opendoor offers 90% to 100% of the property’s Fair Market Value (FMV).

📌 How does Opendoor Work?
Simply provide your address, a photo of your home, and some basic information about the size and status of your property on Opendoor’s website or mobile app to seek a cash offer. Opendoor representatives will evaluate your home, and an offer will be made based on their home pricing formula and feedback from area experts.

📧 Preliminary Cash Offer: Opendoor takes 24 business hours to share a preliminary cash offer. Usually, this is the best price a seller can get for their property.

📆 Closing Timelines: Flexible; homes close within 14 days typically.

💲 Service Fee: 5% of the Final Cash Offer.

💲 Closing Costs: Service fee, plus deduction for repairs, typically 1% to 7%.

💵 Final Cash Offer: Opendoor’s final cash offer is calculated after deducting closing costs and service fees, typically 6% to 13%.

If you have a pretty house and seek a hassle-free transaction, selling to this iBuying company is great. However, if your house needs repairs and doesn’t have a curb appeal, then listing it on the MLS would be ideal. You can get competitive cash offers on the MLS in 2022’s hot seller’s market.

Best for: Home sellers with desirable properties that don’t need many repairs and are in Opendoor’s coverage.

» MORE: Opendoor Reviews: Everything You NEED to Know Before Considering Opendoor

  • Excellent for experienced home sellers with pretty houses
  • Fantastic UI experience
  • Sellers receive a no-fuss cash offer
  • Hefty service fees and repair costs
  • The repair cost breakdown isn’t disclosed in the final cash offer
  • Not suitable for first-timers or FSBO sellers
  • The sales process may feel rushed

Opendoor has an average rating of 4.4 out of 5 stars across 2,509 reviews on Reviews.io. Customers had mixed experiences as per several iBuying company reviews of Opendoor.

Opendoor operates in 47 major markets across 21 states: AL, AZ, CA, CO, FL, GA, ID, IN, MN, MO, NV, NC, OH, OK, OR, SC, SD, TN, TX, UT, VA.

3. Offerpad

FAST CLOSING
  • 💲 Service Fee: 5%
  • Close in 10 days
  •  4.6 / 5 (out of 164 reviews)

Offerpad is a real estate cash buyer backed by cutting-edge technology, extensive data analytics, and a team of knowledgeable in-house market specialists. An iBuyer known for its fast closing schedule and simple UI, homeowners can sell their houses for cash fast with Offerpad.

Offerpad offers 80% to 100% of the property’s Fair Market Value (FMV).

📌 How does Offerpad Work?
To seek a cash offer for your house, simply provide the address, a photograph, and some basic information about the size and status of your property on Offerpad’s website or mobile app. Offerpad’s specialized team of real estate professionals inspects your home, and Offerpad’s patented evaluation tool comes up with an initial “offer price” for your property.

📧 Preliminary Cash Offer: Offerpad takes 24 to 48 business hours to share a preliminary cash offer. Usually, this is the best price a seller can get for their property.

📆 Closing Timelines: Faster than other iBuyers; homes close as early as 7 days.

💲 Service Fee: 5% of the Final Cash Offer.

💲 Closing Costs: Service fee, plus deduction for repairs, typically 1% to 7%.

💵 Final Cash Offer: Offerpad’s final cash offer is calculated after deducting closing costs and service fees, typically 6% to 13%.

If you have a pretty house and desire to close on the home fast, selling to this iBuying company is great. However, if your house needs repairs and doesn’t have a curb appeal, then listing it on the MLS would be ideal. You can get competitive cash offers on the MLS in 2022’s hot seller’s market.

Best for: Home sellers with desirable properties who are looking for a fast closing.

» MORE: Offerpad Reviews 2022: Is it Worth the 1% Cancellation Fee?

  • In just 10 days, you’ll be able to close your house sale
  • 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 with 164 reviews. While we don’t have any state-specific reviews, the general review about working with Offerpad is positive, with fair cash offers and flexible closing dates.

Offerpad is available in 21+ markets in 16 states: AL, AZ, CA, CO, FL, GA, IL, ID, KS, MO, NV, NC, OH, SC, TN, and TX.

4. RedfinNow

AS-IS IBUYER
  • 💲 Service Fee: 5% to 13%
  • Closing in 10 days
  •  2.5 / 5 (out of 7 reviews)

RedfinNow is the extended iBuying arm of Redfin, America’s largest discount brokerage firm. Homeowners can sell without marketing their house for sale and get reasonable cash offers for their houses. Unlike most iBuyers, RedfinNow also buys vacant homes.

Known as the “as-is iBuyer,” RedfinNow makes offers on less desirable properties too.

RedfinNow offers 70% to 90% of the property’s Fair Market Value (FMV).

📌 How does RedfinNow Work?
Provide your address, many photos of your home, and some basic information about the size and status of your property on RedfinNow’s website or mobile app to seek a cash offer. RedfinNow representatives will evaluate your home and a cash offer will be made based on their home pricing formula.

📧 Preliminary Cash Offer: RedfinNow takes 24 business hours to share a preliminary cash offer. Usually, this is the best price a seller can get for their property.

📆 Closing Timelines: Flexible; homes close within 14 days typically.

💲 Service Fee: 5% to 13% of the Final Cash Offer.

💲 Closing Costs: Service fee, 1% closing fee, plus deduction for repairs, typically 0% to 3%.

💵 Final Cash Offer: RedfinNow’s final cash offer is calculated after deducting closing costs and service fees, typically 6% to 17%.

If you have a pretty house and seek a hassle-free transaction, selling to this iBuying company is great. However, if your house needs repairs and doesn’t have a curb appeal, then listing it on the MLS would be ideal. You can get competitive cash offers on the MLS in 2022’s hot seller’s market.

Best for: Home sellers looking for a fast, predictive sale with properties in good condition.

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

  • Purchases properties as-is, with more stringent formalities than other iBuyers.
  •  Ninety-day flexible closure window
  • Fees might be as high as 13% of the total amount.
  • There is no incentive to trade in your home.
  • There is no possibility of a late checkout.

RedfinNow has an average rating of 2.5 out of 5 stars on TrustPilot.

RedfinNow is the second-largest iBuyer (coverage-wise) and buys homes for cash in 20+ states: AL, AZ, CA, CO, FL, GA, ID, IN, MN, MO, NV, NC, OH, OK, OR, SC, SD, TN, TX, UT, VA.

5. Zillow Offers

🛑 NO LONGER AVAILABLE
Copany LogoLogo image

Zillow Offers

Company Link
  • $ 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 and entered the cash home buyers space. It provided a hassle-free, quick option for eligible homeowners by offering instant cash offers and quick closing.

Zillow Offers offers 80% to 110% of the property’s fair market value. (FMV)

📌 How does Zillow Offers Work?
Simply provide your address, a photo of your home, and some basic information about the size and status of your property on Zillow’s website or mobile app to seek a cash offer. Zillow representatives will evaluate your home, and an offer will be made based on their home evaluation tool, Zestimate.

📧 Preliminary Cash Offer: Zillow takes 24 to 48 business hours to share a preliminary cash offer.

📆 Closing Timelines: Flexible; homes close within 7 to 90 days typically.

💲 Service Fee: 9% of the Final Cash Offer.

💲 Closing Costs: Service fee, plus deduction for repairs, typically 1% to 5%.

💵 Final Cash Offer: 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%

» MORE: Zillow Reviews: Is Zillow the Best for Selling Your Home as Owner?

  • Flexible closing window (7-90 days)
  • Cash offer in just 2 days
  • Dedicated Zillow Offers advisors for every customer
  • High fees — up to 13% of the total sale price
  • Strict home eligibility criteria
  • Little to no opportunity to negotiate on price

As of May 24th, 2022, Zillow Offers has no verifiable customer reviews on popular review websites.

Zillow Offers is available in major cities across AZ, CA, CO, FL, GA, MN, NV, NC, OH, OR, TN, and TX.

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

 

» MORE: 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.

⏰ FASTEST WAY TO GET CASH OFFERS: Houzeo is 100% online. Complete listing formalities in <60 mins and market to potential buyers, including cash buyers!

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.

⏰ FASTEST WAY TO GET CASH OFFERS: Houzeo is 100% online. Complete listing formalities in <60 mins and market to cash buyers, including iBuyers!

✅ 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!

⏰ FASTEST WAY TO GET CASH OFFERS: Houzeo is 100% online. Complete listing formalities in <60 mins and market to cash buyers, including iBuyers!

⛔ 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 AMVs (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.

Blast Past Fast: Finish listing formalities for your property in <60 mins with Houzeo’s 100% online platform.

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 service fee is what the iBuyer company charges you 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 9% 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.

👉 EXPLORE: We buy Houses for Cash Companies: Who’s the best in 2022?

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.

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