I Buy Houses vs. Cash Buyer Companies | Is it a scam? | How it Works | Customer Reviews | I Buy Houses vs. Listing With An Agent
I Buy Houses is a network that connects home sellers with real estate investors across the country.
Unlike other companies that buy houses for cash, I Buy Houses has nothing to do with the actual home sale — they simply provide your information to subscribers in their investor network. This means home sellers are left to deal directly with a local investor and don’t have access to the support offered by a large company or franchised brand.
Providing your information to I Buy Houses isn’t necessarily risky (it’s free), but any investors who contact you as a result aren’t pre-vetted, so you’ll have to do your own research and find out if they have a good reputation.
Many cash home buyers pay tens of thousands less than what your house is worth on the open market. So before you accept a cash offer through I Buy Houses, it’s important to make sure you’re getting a fair price.
With Clever Offers, our friends at Clever Real Estate can connect you with a top local agent who can get you cash offers FOR FREE. Your agent will make sure the offers are fair, and you’ll find out what your home is actually worth if you’d rather list it on the open market instead. Get started and request offers today!
🔑 Key Takeaways:
- I Buy Houses can help you find a real estate investor in your area who might want to buy your home.
- I Buy Houses does not vet investors in their network, so it’s difficult to know whether or not the investor you get connected with is reputable.
- Selling to a real estate investor who pays cash might be fast, but it won’t net you as much money as you could get by listing your house on the open market, even if it’s in poor condition.
I Buy Houses vs. Cash Buyer Companies
If you need a fast cash sale, I Buy Houses likely won’t be your best choice. Unlike cash buyer companies that offer a more complete home selling service, I Buy Houses is really just a lead generation platform for real estate investors.
For example, when you submit your information to ibuyhouses.com, there’s no guarantee that you will even hear back from an investor — they’ll only contact you if they’re interested.
The website’s FAQ page even says that if it’s been awhile since you submitted your information and you haven’t heard anything, you can assume there’s no interest.
I Buy Houses vs. We Buy Houses Companies
|I Buy Houses||"We buy houses" companies|
|Anyone can join||Investors are vetted based on experience|
|Offer is only made if an investor in your area is interested||Offer in 24-48 hours|
|The process and terms of the offer depend entirely on how the local investor operates||Standardized brand processes for evaluating the home, making an offer, and negotiating with sellers|
|Investor pays a small monthly subscription fee to get leads from the network||Licensee/franchisee pays a fee to use the brand name|
|Investor may or may not pay closing costs||Company typically pays all closing costs|
Is I Buy Houses a Scam?
No, I Buy Houses isn’t a scam — it’s a legitimate company that aims to connect home sellers with local real estate investors.
Investors pay to access these leads, but there’s no guarantee to home sellers that investors in the network will reach out with an offer.
Because the I Buy Houses investor network is made up of investors who aren’t vetted by the company, it’s impossible to say whether or not you’ll have a positive experience working with them.
If you do get connected with an investor through I Buy Houses, we recommend doing everything that you can to find out more about the individual’s reputation and history as a real estate investor, including reading user reviews of their local business, if they have a business name.
If you need to sell your house for cash or want to sell quickly, there are other options, including:
- Working with an agent to sell on the open market
- Selling to an iBuyer like Opendoor
- Selling to a “We Buy Houses” company like We Buy Ugly Houses
Our friends at Clever Real Estate can connect you with a discounted top agent in your area!
How I Buy Houses Works
Submit your information online. The form on ibuyhouses.com asks for information that includes:
- Your contact details
- The type of property you’re selling
- The size of the property
- Your reason for selling
- Your asking price
- How motivated you are to sell (on a scale of 1-10)
An investor might contact you. Next, your information is circulated to local investors who are part of the network. If any of these investors are interested in your property, they’ll reach out for more information. Specifically, they might want to know more about your mortgage, so they know what kind of situation you’re in as a seller.
You negotiate a deal with the investor. You’ll have to negotiate with the investor yourself and agree to terms on things like the closing date, the final sale price, and who will pay closing costs.
Sign the deal. Once you’ve reached an agreement, you can enter into a contract with the investor. Remember, if you feel like the investors terms aren’t favorable enough for you, you can back out as long as you don’t sign the contract.
We were unable to locate any customer reviews of I Buy Houses.
The company also has no social media presence, which makes it almost impossible to determine how frequently they’re connecting home sellers with investors, or what the overall selling experience is like.
Given the lack of customer reviews, you should carefully weigh all of your options before working with an investor through I Buy Houses.
I Buy Houses vs. Real Estate Agents
|I Buy Houses Investor||Listing Agent|
|No commission fees||Approximately 3% commission (+3% for the buyer's agent)|
|You may have to pay closing costs||You have to pay some closing costs|
|Only offer enough to ensure that they'll make a profit (less than fair market value)||Get maximum possible value on the open market|
|Very little room for negotiation||Can negotiate with the buyer on your behalf|
|No need to prep or do repairs||Might have to prep and repair house before listing|
A real estate agent can use their local knowledge and marketing expertise to sell your house quickly and for more money than most I Buy Houses investors are willing to pay — even if you’re selling a house that needs repairs.
When a home is listed on the open market, it attracts attention from multiple buyers, which leads to competition. This improves your odds of getting an offer that’s at or above fair market value.
Furthermore, an agent is incentivized to protect your best interests and vet buyers to make sure that you walk away with the best possible deal.
This is important because if you’re negotiating directly with an investor from I Buy Houses, there’s no one looking out for your best interests.
By contrast, our friends at Clever can connect with a partner agent and help you save money at the same time. You’ll get matched with agents from the nation’s leading brokerages and pay just 1.5%.
Is ibuyhouses.com legit?
Yes, ibuyerhouses.com is a legit website that connects sellers with real estate investors. Investors pay significantly less than what you'd get for your house on the open market, but they can act quickly. iBuyers are another alternative if you want a fast cash offer and a competitive price. Learn more about iBuyers here.
Does I Buy Houses charge a fee?
No, I Buy Houses doesn't charge a fee, but you'll only get about 50% of your home's value. You could walk away with a lot more money if you sell your home on the open market, especially if you use a discount real estate service. Learn more about the best discount brokers.
Want to learn about other options for selling your house quickly? Check out a couple more of our resources.
- Selling a Home As Is: Everything that you need to know about selling your home without making and repairs or upgrades, plus the pros and cons of an “as is” sale.
- We Buy Houses For Cash Companies: Incredible Deal or Predatory Scam?: Find out how “We Buy Houses” companies work, and whether or not it’s a good deal when you need to sell your home in a hurry.
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