What Is an iBuyer, and How Does iBuying Work?

An iBuyer is a real estate company that uses technology to make near-instant cash offers on homes.

When you sell your home to an iBuyer, you can pick your closing date to be as little as 8 days or up to 60 days after the initial offer. You also don’t need to make repairs before you sell, and you can stay in your home a few extra days after closing if you need more time to move out.

The trade-off for a convenient sale is that iBuyers usually pay less than you could get on the open market. iBuyers also represent a small segment of the real estate market. Together, leading iBuyers Offerpad and Opendoor purchased fewer than 9,500 homes in all of 2025.[1][2]

Yet, for those who fit the typical profile of an iBuyer's target seller, this option could still be worth considering. Below, we explore the top iBuyers of 2026 to help you evaluate your choices.

Where can I get an offer from an iBuyer?

In addition to well-known players like Offerpad and Opendoor, companies like Knock and Orchard have also entered the space with parallel cash-offer solutions that help you buy a new home before selling your current one.

Offers marketplaces like Clever Offers have also emerged as a way to comparison shop between iBuyers, buy-before-you-sell solutions, and local options you may not have considered. Below are some of the top iBuyers by market coverage.

When is an iBuyer a good fit?

Here are three reasons selling to an iBuyer might make sense for you.

You want a quick sale

Using an iBuyer makes sense if speed and convenience matter more than getting the best price for your home. Selling to an iBuyer is usually much faster than the traditional home sale process.

You can receive cash offers in as little as 24–48 hours and close in as little as 8 days. That's just over a week from the time you submit an offer request to having cash in hand — a stunning pace for something as large as a home sale.

If you're under time pressure because you're starting a new job, or you inherited a property you don't want, an iBuyer can take your home off your hands quickly. And they can pay a price close to what you'd get on the open market. 

You want an easy sale

Selling to an iBuyer might be the easiest way to sell your home, whereas the traditional home selling process takes more time and effort.

When you sell with a real estate agent, you'll likely have to stage your home, including cleaning, rearranging, and redecorating. You might also have weeks of showings with strangers walking through your home. And once you get an offer, there are negotiations and counter-negotiations — and the sale could still fall through!

Selling to an iBuyer is more of an open-and-shut transaction. An iBuyer will likely have an inspector come to your home once to survey its condition, and then if your home qualifies, you'll get an offer. The offer is usually non-negotiable, so you don't have to stress about haggling.

You don't want to worry about repairs

Traditional sales often require repairs and upgrades to the home. These updates could include anything from a fresh coat of paint to new light fixtures to an overhaul of the kitchen, all of which take time and money.

If you sell to an iBuyer, you don't need to make any repairs or upgrades. They purchase your home as is, deduct repair costs from your offer, and take care of the repairs after closing.

What types of homes do iBuyers purchase?

In general, iBuyers purchase houses built after 1930 that only need cosmetic repairs before they can be resold. Distressed properties that need significant repairs or remeditiation usually won't qualify.

iBuyer availability also varies significantly by market. Some markets — such as rural areas or dense coastal metros with heavy condo stock and high home prices — see little to no iBuyer activity.

Andrew Velez, a Coral Springs, FL realtor, notes this directly: "Offerpad and Opendoor have not been very active in the South Florida market. Every time I submitted a property, they said there was no market for them. A lot of condos don't qualify for those programs, and I don't think they're attractive enough for the portfolios."

If you can't sell to an iBuyer, you could try selling your house as is on the market or selling to a "we buy houses" company.

How do iBuyers determine their offer amount?

One of the main innovations of the iBuyer industry is its use of data analytics to determine home values. The exact ways iBuyers do this are closely guarded trade secrets, but we know some of the factors they look at.

Comparable sales

One of the easiest ways to establish a home’s fair market value is to look at what similar homes recently sold for. Comparable homes are similar in size, condition, and location.

Your home’s condition

iBuyers conduct an in-person inspection to determine your home’s condition and estimate repair costs. They don’t buy homes in poor condition, so if your home needs a lot of work, they’ll likely pass.

Their own data sets on home values

Most iBuyers use tools like an automated valuation model (AVM) to help price homes. AVMs use an algorithm and data from thousands of real estate transactions to estimate what a home might sell for on the open market.

Input from local experts

iBuyers also consult experts in the local real estate industry. These experts look at the value estimates from analytic tools and tweak them based on local market dynamics. Regarding your property’s value, what matters most isn't what's happening nationally — it's what’s happening in your town, neighborhood, or even on your block.

Pros and cons of selling to an iBuyer

iBuyers offer a fast, convenient way to sell your home, providing cash offers quickly and streamlining the process. However, these benefits come with trade-offs, such as limited buying criteria, service fees similar to traditional commissions, and a lower offer than you might receive on the open market.

Unfortunately, you won't know the final offer amount until after Opendoor's inspection — which can be problematic if you've already gone under contract on another home.

Charlotte-based realtor Melissa Young has seen home sellers put in tough situations due to the uncertainty of the final offer: "The offer in the beginning seems reasonable, but after going through inspections, a lot of things change. By the time the seller realizes that it's a terrible deal, it's too late to back out because they're already moving onto something else."

iBuyers also charge service fees in the range of 5% — although Opendoor no longer discloses a fixed percentage for its standard cash offer, and Offerpad's fees have also fluctuated in the past.[3][4] On top of the service fee, both companies deduct for repairs and charge roughly 1% in closing costs, meaning total costs to the seller typically run 7–10% or more of the sale price, not counting any below-market discount on the purchase price itself.

How does iBuying work?

Selling your home to an iBuyer

Selling your house to an iBuyer typically involves these steps:

• You submit an online form. The form includes information about your property's location, condition, size, and more. If the iBuyer determines that your home is eligible for purchase, it asks for more detailed information, including square footage, how much you owe on your mortgage, and photos.

• The iBuyer quickly makes an initial cash offer — often within hours or days. The offer is usually non-negotiable. If you accept, you typically sign a purchase agreement online.

• The iBuyer sends an inspector to view your property to examine the interior and exterior of your home, as well as its major systems.

• The iBuyer deducts the cost of needed repairs (if any) from your cash offer. Some iBuyers allow you to have your own contractor make repairs, but the iBuyer must inspect and approve the results.[3] Final offers from iBuyers like Opendoor and Offerpad may be much lower than initial estimates.

• You can accept or reject the final offer. If you accept, you can choose the closing date within the iBuyer's flexible window, often 10–60 days.

• On the closing date, you fill out the final sale paperwork at the iBuyer's title or legal office. The iBuyer then transfers payment to your bank account.

Buying a home from an iBuyer

Purchasing a home from an iBuyer is a simple process that usually follows these steps:

• Download the app. Opendoor and Offerpad use an app to handle almost the entire purchase process. You can even unlock their properties with your smartphone for a private viewing.

• Browse the listings. On the app, you can browse all iBuyer's properties for sale. In most apps, you can also look at other properties on the market, with an option to use one of the iBuyer’s real estate agents to submit an offer.

• Submit an offer. You can submit an offer directly through the app. Because iBuyers almost always refurbish the homes they buy, you should probably view them as finished products. Trying to negotiate further repairs or improvements will be tough.

• Close when you want. If the iBuyer accepts your offer, the next step is to choose a closing date. You can close in less than 2 weeks or up to 60 days.

How much will an iBuyer pay for my house?

Our research team looked at more than 500 homes bought and sold by major iBuyers Opendoor and Offerpad between May 2023 and June 2025. The data from these listings showed that both companies typically pay less than market value for homes:

• Opendoor paid an average of 9% less than the home's market value at resale. For a typical Opendoor home purchased at $338,560 (the average price point in our analysis), that represents a loss of about $26,376 in potential profit for the home seller.
• Offerpad paid an average of 14% less than the home's market value at resale. For a typical Offerpad home purchased at $293,436, that represents an average loss of $29,346 compared to the home's market value at resale.

Realtors we've spoken with corroborate the math.

"The highest I have seen an offer come in is about 88–90% of market value," Dave Goodman, a San Diego realtor with more than two decades of experience. "And then they're typically looking for a 5% selling fee, and they usually hit the seller up for about 2% in repairs — so it ends up being 7%."

Young has seen similar offers from iBuyers: "I have had a few sellers want cash offers, and the quotes I've gotten are typically about 85–90% of actual retail value. Their fees are typically higher than what I would even charge to sell it conventionally. I have never once had a seller actually take them up on their offer."

Offers can vary widely, however — and market conditions matter as much as the iBuyer's internal formula. Luke Kochniuk, a Utah-based realtor, has seen the full range: "I had a couple of them where the offer was well above the market rate. I was like, just go with it, because if they're going to pay you that, it's crazy not to get it. And then I've had them like standard cash offers, which are 30% below list price. So they've been all the way across the board."

iBuyers vs. alternatives

An iBuyer offer isn't right for everyone. Here's how it compares to the main alternatives — and when each option tends to make the most sense.

iBuyers vs. "we buy houses" companies

Traditional investors — including local house flippers and "we buy houses" companies — will purchase almost any home, regardless of condition. They can also close fast, often in just weeks. The tradeoff is that investors expect a much steeper discount than you might get with an iBuyer.  

Investors often use the 70% rule as a starting point for pricing a home — meaning they'll try to cap their offers at 70% of home's after-repair value, minus repair costs. For example, if similar move-in ready homes in your area are selling for $500,000, and your home requires $50,000 in repairs to get it to a similar standard, an investor might offer $300,000 for it. However, there are definitely exceptions to the rule. 

"We sometimes offer up to 75% of the property's after-repair value, especially for newer products needing only cosmetic rehabs," says Brendan Grey of Grayscale Wholesale. Brian Harbour of Real Deal Home Solutions has gone as high as 90% ARV in certain novation transactions in strong seller's markets — but notes this is rare.

That said, investors offer real advantages for sellers in the right situation. "If the property requires significant repairs or is in poor condition, an investor can be a good option," notes Efrain Lopez of House Love Treatment Buyers LLC. "Investors buy properties 'as-is' and are typically not concerned about cosmetic issues, structural repairs, or extensive updates." 

iBuyers, by contrast, have stricter purchase criteria and generally won't touch homes with serious structural issues, unpermitted additions, or properties in flood zones.

iBuyers vs. realtors

For most sellers, listing with a realtor will net the highest price — but it requires more time, preparation, and flexibility. You'll need to accommodate showings, negotiate with buyers, and potentially make repairs or offer concessions. In return, you get full market exposure and the benefit of a skilled negotiator working on your behalf.

According to the investors in our survey, the calculus is straightforward: Contact a realtor when you have time and a home in reasonable condition. "If there is no pressing timeline or necessity to sell, then it makes sense to try an agent first," says Charles H. Chandler III of My Tennessee Home Solution. "If someone has time on their hands and the property is in relatively good condition, they would benefit from listing with a realtor who can market the property to a wide pool of potential buyers and potentially get a higher price than an investor would offer," adds Lopez.

Realtor Jon Granlund says that, in his experience, he's consistently been able to beat iBuyers' offers for his clients: "I say to them, if I can't beat the offer, cancel with me and sell it to the iBuyer. And I've beaten the iBuyer every time." The one exception, he notes, is sellers who genuinely need to move fast and don't have the flexibility to wait for a traditional buyer: "People don't have really any problem getting good offers for their house, and they're reluctant to go down the path and leave any money on the table — unless they have to."

iBuyers vs. buy-before-you-sell programs

If your biggest challenge is timing your home sale with a new home purchase, a buy-before-you-sell program may be a better fit than an iBuyer. Companies like Knock, Homeward, and Orchard provide bridge loans or equity advances against your current home, letting you make a non-contingent offer on a new property before your old one sells. You then list your original home on the open market at full value and use the proceeds to settle up.

These programs charge service fees (typically 1.9–3.5%) on top of standard closing costs and agent commissions, so they're not cheap — but you keep the upside of a full market listing rather than selling at a discount to an iBuyer. They work best for sellers who have sufficient equity and want to stay competitive in the buying market without needing to accept a below-market cash offer on their current home.

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