What’s an iBuyer in Real Estate?

An Instant Buyer (iBuyer)  buys houses directly from the homeowners for cash. The way it works is simple, after logging into the buyer's website, you fill out an application. You'll receive an offer in cash from the company after a few days. If you are happy with the offer, you accept it and pick the day you want to close ( you can even negotiate staying in the home after it closes if you need your cash right away but need more time to find your next home). There will be paperwork and formalities following your acceptance of the offer. After that, you've sold your house!

Pro: Convenience

With an  iBuyer, you can do everything online and on your schedule. There's none of the hassle of going through multiple meetings with a real estate agent. You also don't have to wait for the decision (or indecision) of the potential home buyer.

 You don't have to spend time fixing it up your home, making repairs or staging so your agent can show it to potential buyers. Most iBuyers will have everything done and your house can close within 10 to 20 days.

Con: Higher Transaction Fees and Deductions

Traditional real estate transaction costs are about three to six percent of the total cost of your home. With iBuyers, it can go up to as much as 13% of the price of your house. Also, if you choose the option of having the iBuyers fix your home, the cost of doing so will be deducted from the total sale price of your home.

Pro: Cash Offer

If you are selling your house because you have to move quickly and need the money to purchase a new house, iBuyers offers you an all-cash payment for your house. This offer gives you the financial flexibility to buy your new home quickly and not have to worry about waiting for the sale to close. 

Con: Your House May Sell at A Lower Market Price

The primary strategy of iBuyers is to buy your house at a slightly lower price than what you may get on the open market.  Typically an iBuyer will buy your house approximately $15,000 less than its actual market price.

Pro: Selling Your House As Is

If you choose to sell your house through an iBuyer, you don't need to worry about inspections, repairs, or even staging your home for viewing as you would by taking the traditional real estate route. You can sell your house in whatever condition it is. If you are in a rush, then this route might sound appealing to you. The iBuyer will take care of the repairs if you choose this option.