What is an iBuyer? An iBuyer is a company that uses technology to make an offer on your home instantly (The “i” in “iBuyer” stands for “instant,” which is why they’re also called “instant offers). From there, you can decide whether or not to move forward with the deal. Depending on your preference, the transaction can close in a matter of days.
iBuyers are companies that have the financial means to buy homes in cash. To formulate an offer, iBuyers typically rely on similar properties in your local real estate market, or “comps,” much as a real estate agent would in order to formulate a listing price on a home (or an offer).
In most cases, iBuyers take the properties they purchase, fix them up, and eventually list them on the open market or sell them to investors at a profit.
The traditional path of selling your home involves a range of inconveniences, like keeping your home mess-free, and leaving it—often at the last minute—during home showings and open houses. iBuyers eliminate these hassles. Obtaining an offer from an iBuyer can take as little as a few taps on your computer or smartphone.
Many iBuyers operate only in select cities; furthermore, some firms will purchase only homes that meet certain qualifications (e.g., properties in decent condition) or homes within a certain price range.
Nonetheless, the iBuyer space is quickly expanding its reach.
While there are plenty of reputable investors out there, make sure you do your research before choosing an iBuyer — “We buy houses” scams are common. Make sure you’re dealing with a reputable business, and don’t deal with any company that asks for money upfront — no money should change hands until closing day, and at that point it should be handled by a third-party title company.