An iBuyer is a company that works directly with sellers providing an instant cash offer to purchase the home outright. iBuyers purchase the home as-is without requesting any repairs, upgrades, warranties, closing costs or concessions, or real estate agent commissions.
Ibuying is advertised as an alternative option that allows homeowners to sell their home without a broker or real estate agent, saving them money and time while avoiding the challenges and costs that can be incurred with the traditional real estate transactions
That being said, Ibuyers do typically charge a fee ranging from 5-9% of the sales price which can be more than the standard real estate agent’s commission and since the sales price is determined by algorithm it often falls short of the fair market value.
Some of the company’s currently promoting iBuying are: Opendoor, Offerpad, Zillow Offers and Redfin . Now, if you are considering going this route make sure to read the fine print regarding seller obligations and fees. However, if you want to get the best price for your home it would be more beneficial to deal with an experienced real estate agent who can negotiate the best price and navigate any challenges that may arise.