What Is an iBuyer? A Real Estate Guide

Where can I get an iBuyer offer?

Though expanding rapidly, iBuyers aren’t available in all locations. They have a heavy presence in mid-priced metro areas in the Southern band of the U.S.  Areas where houses are similarly built and mostly in good shape are prime iBuyer hubs.

They’re often active in Phoenix, Atlanta, Charlotte, Dallas-Fort Worth, Orlando, and other fast-growing cities in the South and Southwest regions.

To get an offer, you can go directly to the websites of major iBuyer companies like Opendoor and Offerpad and type in your home’s address. If they operate in your area, you’ll usually get a preliminary offer within a day or two. If not, they’ll typically let you know right away and may suggest alternatives.

Are there any alternatives to iBuyers?

HomeLight’s Simple Sale platform is another option for selling your home quickly and with fewer hassles. With it, you can receive a competitive all-cash offer on your home and have the transaction completed on your timeline.

Simple Sale has a network of cash buyers on its platform, and partner investors have a wide range of investment strategies, including fix-and-flip and buy-and-hold. As a result, it can provide cash offers for a wide array of properties, even those that need some or a lot of work.

You can skip staging and repairs, and sell without agent commissions or upfront selling costs. Answer a few basic questions about your home’s condition, the extent of repairs and work it needs, and your selling timeline to get started with Simple Sale today. Here are some important details to know about Simple Sale:

• Service fee: Some transaction fees apply. But there are no hidden fees or agent commission costs, and requesting a no-obligation offer is free.
• Locations: The program is available across most of the nation. Input your address to see if we can provide a cash offer for your property.
• Closing window: After we’ve collected key details about your home, we’ll provide a cash offer in as little as 24 hours, with the ability to close as quickly as 7 days. You can pick a move day that works for your schedule, typically within 30 days of closing.

Below, you can hear about how Baohan Wu, a seller who used Simple Sale to sell his high-rise apartment and successfully closed within three and a half weeks, along with his thoughts on the overall process.

How much are iBuyer costs and fees?

iBuyer costs and fees vary depending on the company and specific program. However, in general, these are the expenses you can expect:

• Service fees: Both Offerpad and Opendoor charge a 5% service fee based on the home’s sale price. This is below the typical 6% commission real estate agents receive in traditional home sales when the seller agrees to cover both their listing agent and the buyer’s agent fees. Still, you may receive a lower offer with an iBuyer versus an open market sale.
• Closing costs: Offerpad and Opendoor estimate these to be between 1% and 2% of the sale price, depending on the state and municipality. Lumped into this sum are things such as escrow fees, title fees, and transfer taxes, all of which are standard for any real estate transaction.
• Repair costs: After you’ve agreed to an iBuyer’s offer to buy your home, the company inspects the home for anything they need to repair or replace to sell it. If you accept their offer, then they deduct the estimated cost of those repairs from the final offer price.

Here’s a basic example of how these fees would look in the sale of a $450,000 home: