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Zillow shuttered its iBuyer program (Zillow Offers) in 2021
Zillow is known as the place to shop for a home. But, in 2018, the real estate company launched its own iBuyer services for sellers called Zillow Offers. The program was short-lived. In November 2021, Zillow announced the end of Zillow Offers, citing the inability to forecast home prices and balance sheet volatility.
RedfinNow closed in 2022
Redfin is an online real estate brokerage company launched in 2005. In 2017, the company started RedfinNow, its iBuyer business. Faced with the rapid downward shift in the housing market in response to higher interest rates, the company announced it was winding down its iBuyer operations while laying off approximately 13% of the company’s workforce.
iBuyer company FAQs
iBuyer companies had big plans to shake up the real estate market with immediate cash offers and quicker closing timelines when they hit the scene about 10 years ago. But, as the housing market cooled after the pandemic-triggered housing boom, iBuyer companies are struggling to stay afloat. The ones that remain are having to adjust their models.
In 2025, iBuyer revenues showed a significant decrease. The nation’s largest iBuyer, Opendoor, announced that it generated 33.5% less revenue in the third quarter of 2025 compared to the same period in 2024. In October 2025, Opendoor pivoted to become an AI-powered technology platform that helps others transact real estate, rather than just being a house flipper.
Do iBuyers make fair market offers?
While iBuyers often offer more than house flippers, you likely won’t receive the full fair-market value for your home when selling to an iBuyer. This is because iBuyer companies typically purchase homes as-is, saving you the time and money to deal with repairs, showings, and prepping your home for sale.
How much does it cost to sell to an iBuyer?
Although iBuyer companies do not charge a commission like a real estate agent, they do charge a service fee, typically around 5%-6%. The national average real estate commission is 3%-5.8%, which reflects the change in commission fees in the U.S. following the implementation of NAR’s lawsuit settlement terms in August 2024.
Key takeaways about today’s iBuyers
We’ve gone over a lot in this guide, including who the major iBuyers are, what they do, and some of the differences among them. If you’re weighing whether to sell your home to one of the iBuyer companies, consider these key takeaways:
