The best iBuyer companies, ranked | Find iBuyer companies near me | Fees | How it works | How much do iBuyers pay? | How iBuyers make money | Alternatives
iBuyer companies make near-instant cash offers on homes in select markets. Unlike a traditional home sale, you won’t be selling to an individual buyer β which means there’s less risk of the deal falling through. You can also close much more quickly, sometimes in as little as ten days.
The main benefit of selling to an iBuyer company is convenience. iBuyers don’t require any prep or repairs for the sale to go through, so you won’t have to invest much time or cash upfront.
However, iBuyers typically offer fair market value for homes at most. After service fees, you’ll likely earn quite a bit less than what you’d get selling on the open market.
By contrast, listing your home on the open market can result in a higher sale price, especially in competitive markets where you could receive multiple offers.
If you’re trying to decide whether an iBuyer is the best option for your sale, we recommend talking to a real estate agent to learn more about your local market pricing and trends.
To help, we’ve partnered with Clever Real Estate, a free service that matches you with top-rated local agents and pre-negotiates savings on your behalf. If you sell with Clever, you’ll save thousands by paying just $3,000 or 1% in listing fees!
Β» CONNECT: Meet top-rated real estate agents near you!
The best iBuyer companies in 2021
Our team combed through thousands of customer reviews, interviewed company representatives, and spent months studying trends in the iBuying space. Our in-depth iBuyer reviews provide a fair and balanced view of the major companies in the industry.
In general, we discovered that iBuyer companies focus on buying relatively new homes that are close to market-ready. These companies also aren’t available everywhere β so be sure to check which iBuyer companies are near you.
Further, there are three major iBuyer companies that currently account for the majority of sales: Opendoor, Zillow Offers, and Offerpad.
Of these, Opendoor came out as the best iBuyer in our rankings! Opendoor’s relatively low service fees, expansive service area, and positive customer reviews make it one of the best options for home sellers. Request your cash offer from Opendoor today!
The best iBuyer companies, ranked
| Company | Service fee | What makes this company unique |
|---|---|---|
| π΅Β Opendoor | 3.5-5% | Low fees and consistent service |
| πΒ Offerpad | 6-10% | Free moving service within 50 miles |
| πΒ Zillow Offers | 1.5-7.9% + 6% selling costs | Widest service area among iBuyers |
| π΄Β RedfinNow | 6-12% | Buys high-price homes (but limited to the West Coast) |
| π‘Β Knock* | N/A | Lets you buy a new home before your old home sells |
| π°Β Orchard* | N/A | Offers instant cash equity for your next home purchase |
1. Opendoor
Lowest fees
- 5% service fee
- Available in 40+ metro areas
- Close in 14 days
In comparison to other iBuyers, Opendoor offers the best value because the fees are capped at 5% and they pay close to fair market value for homes. Sellers should be aware that Opendoor deducts repair costs from their final offer, and the company no longer allows home sellers to handle repairs on their own.
Pros
- Free, no-obligation offer
- Close in as little as 14 days, or longer if you need it
- Available in over 30 markets and continuing to expand
Cons
- No control over repair costs
- Strict criteria for purchasing homes (no structural damage, no homes pre-1930, etc.)
Opendoor is currently available in 40+ major markets in 17 states: AL, AZ, CO, FL, GA, ID, IN, MN, MS, NV, NC, OK, OR, SC, TN, TX, and UT.
Opendoor was the first major iBuyer company, and today it remains the most influential company in the iBuying space.
Selling to Opendoor is simple. After submitting basic information online, Opendoor will make a cash offer within 48 hours. The company will then inspect your home, adjust its offer to account for repairs, and close in as little as 14 days.
Unlike other iBuyers, Opendoor is available in more than 40 metro areas across the U.S., with plans to expand to new locations. Its service fees are also relatively low β just 3.5-5%, plus repairs and closing costs.
Opendoor reviews from customers praise the seamless, hassle-free experience of selling their homes. However, several Opendoor complaints note that repair costs can be pricey in some cases β so your proceeds at the end of the sale may vary according to your home’s condition.
| π Ready to learn more about Opendoor? Submit your information to get a free, no-obligation cash offer today! |
2. Zillow Offers
Fast Closing
- Service fees can be as high as 9%
- Close in just 7 days
- Up to 90 day closing window
Zillow Offers is one of the only iBuyers to offer a closing window of up to 90 days, which could be helpful for home sellers who need extra time to transition to their next home. However, Zillow’s fees are high β as high as 9% β and they charge an additional 6% in selling costs.
Pros
- Flexible closing window (7-90 days)
- Cash offer in just two days
- Dedicated Zillow Offers advisor for every customer
Cons
- High fees β up to 13% of the total sale price
- Strict home eligibility criteria
- Little to no opportunity to negotiate on price
Zillow Offers is available to home sellers in 25 metro areas across 12 states: AZ, CA, CO, FL, GA, MN, NV, NC, OH, OR, TN, and TX.
First launched in 2018, Zillow Offers provided a new option for sellers who wanted a fast, predictable sale.
Zillow Offers uses a standard iBuying process to purchase homes. You’ll submit your information online to receive an initial cash offer, then complete an inspection to determine repair costs. Closing can occur in as little as seven days.
Unfortunately, you should beware of Zillow Offers’ relatively high fees. Though the average service fee is 7.5%, total selling costs can reach an astounding 9.5-22% including realtor commission, repairs, and closing costs.
Additionally, there aren’t many Zillow Offers reviews available online, so it’s hard to know how real customers have experienced the service.
| π Explore More: Read our take on Zillow Offers’ service and fees now |
3. Offerpad
Fast closing
- 6-10% service fee
- Close in just 10 days
- High repair costs
Offerpad can provide home sellers with a fast cash offer and quick closing, but their reputation isn’t as good as other iBuyers, particularly when it comes to their repair costs and their 1% cancellation fee.
Pros
- Close in just 10 days
- No need to repair or prep home
- Extended stay option for home sellers
Cons
- Customers report high repair costs that reduced their final offer dramatically
- Closing costs and service fees add up to over 10%, in some cases
Offerpad is available in 18 metro areas across 11 states: AL, AZ, CO, FL, GA, IN, NV, NC, SC, TN, and TX.
In 2015, Offerpad became the nation’s second major iBuyer company. As of August 2021, it purchases single-family homes in 11 U.S. states.
Like other iBuyers, Offerpad requires you to submit information about your home online. If you accept its initial cash offer, you’ll schedule an inspection to determine what repair costs you’re responsible for, then move ahead to closing.
However, we found that Offerpad makes it harder for sellers to back out. You’ll have to sign a purchase agreement before knowing the final repair costs β which can subtract thousands from your bottom line. By contrast, other iBuyers only require a contract once the cash offer has been finalized.
This helps to explain why so many Offerpad complaints mention overpriced repairs and poor customer service. Even positive Offerpad reviews sometimes mention expensive or unexpected repair costs.
| π Explore More: Find out how Offerpad stacks up against the competition |
4. RedfinNow
As-is iBuyer
- Fees from 6-12%
- Close in 10 days
- Buys vacant or occupied houses
Redfin Now can provide home sellers in select markets with a fast, predictable sale. Unlike most iBuyers, RedfinNow even buys vacant homes, which could be good news for sellers in difficult situations. However, the high service fees and additional closing costs could be expensive.
Pros
- Purchases homes as is, with broder eligibilty criteria than most iBuyers
- Flexible closing window of 10-60 days
Cons
- Fees can be as high as 12%
- No home trade-in incentive
- No late checkout option
RedfinNow is available in 26 metro areas across ten states: AZ, CA, CO, MD, MA, NV, OR, TX, VA, and WA. It’s also the only iBuyer currently operating in Washington D.C.
If you’re selling an older home or one that’s in poor condition, RedfinNow may be the best iBuyer company for your sale.
Unlike other iBuyer companies, RedfinNow has less strict purchasing criteria. It purchases single family homes, condos, and townhouses built after 1930, including vacant homes.
Though your home must be “safe and habitable” to qualify, RedfinNow will also purchase homes that need cosmetic updates or repairs.
Like Zillow Offers, there aren’t many RedfinNow reviews from real customers β though Redfin itself is a well-known and trusted real estate broker.
| π Explore More: Read up on RedfinNow’s house criteria, fees, and more |
5. Knock
Trade In
- 1.25% fee to trade your home
- Flexible timeline up to 6 months
- $25,000 cash advance
Knock’s business model is not like typical iBuyers since it’s actually a home trade-in service. For home sellers who are struggling with timing the sale of the old home in order to purchase a new one, Knock can make the situation easier by giving you the ability to make a non-contingent offer. However, you’ll have to pay a 1.25% fee for this service.
Pros
- Make a non-contingent offer to buy your next home
- $25,000 interest-free cash advance
- Avoid paying two mortgages at once
Cons
- Doesn’t work with owners of distressed properties
- Old mortgage must be repaid after closing
Knock is currently available in 50 metro areas across 10 states: AZ, CA, CO, FL, GA, MN, NC, SC, TN, and TX.
Knock is a non-traditional lender that lets you buy a new home before selling your old one. And, if your home doesn’t sell on the open market, you can accept Knock’s backup offer for 80-85% of your home’s value.
Knock’s unique service allows you to make a competitive, non-contingent offer on a new home, which can help your offer stand out in hot markets. You’ll also be able to move right away, so any repairs or showings at your old home are far less disruptive to your daily life.
Knock reviews are overwhelmingly positive, with customers praising its convenience and transparency. Though there aren’t many Knock complaints, several do mention snags with customer service and communication.
| π Explore More: Find out what to expect with Knock’s Home Swap program |
6. Orchard
Trade In
- 6% service fee
- Backup offer from Orchard
- Full listing service
Orchard makes it easier to finance the purchase of a new home before you sell your old one, but they’ll only purchase their home directly from you if it doesn’t sell on the open market after 30 days. If you want a fast, predictable sale, a traditional iBuyer is still a better option.
Pros
- Leverage the equity in your current home to buy a new home
- Avoid paying two mortgages at once
- Sell directly to Orchard if you can’t sell on the open market
Cons
- Only available to customers in four states
- High fees β 6% service fee plus closing costs and repayment or old mortgage
Orchard is currently available to home buyers and sellers in 11 metro areas across five states: CO, GA, NC, TX, and VA.
Similar to Knock, Orchard (formerly known as Perch) is a home trade-in service that lets you purchase a new home before finding a buyer for your old one.
Orchard gives you access to up to 90% of your home’s equity so you can make a non-contingent offer on a new home. You’ll then work with Orchard’s in-house agents to sell your old home.
Orchard reviews are generally positive, with customers praising its simplicity, efficiency, and customer service.
However, be aware that Orchard’s service fees and selling costs may cost as much, or possibly more, than listing your home on the open market.
| π Explore More: Read our full review of Orchard’s service, fees, and approach now |
How do iBuyer companies work?
| β Pros | β Cons |
|---|---|
| Fast selling times with near-instant offers and fast, flexible closing dates | High fees compared to listing with an agent |
| No need to repair, prep, or show your home to prospective buyers | You'll receive fair market value, at most (and less in many cases) |
| Greater certainty that the deal won't fall through due to financing or other issues | Little or no room to negotiate over the sale price or repair costs |
Most iBuyer companies share the same basic process. If you decide to sell your home to an iBuyer, you will:
- Submit information about your home online
- Receive an initial cash offer
- Complete a home inspection
- Review an adjusted offer that accounts for repairs
- Close the deal
Though there is some variation among iBuyers’ purchasing criteria, we found that most follow the same general guidelines. In most cases, your property must be:
- A single family residential home, condo, or townhome
- On a 0.5 to 1.5 acre lot
- Built after 1960
- Within an eligible service area
- Valued at $100,000 to $600,000
If your home isn’t eligible to sell to an iBuyer, you can always work with a local real estate agent who can help you find a buyer on your timeline. And, even if your property is eligible, it’s always a good idea to get an estimate from a local realtor to find out how much your home could sell for on the open market.
We’ve partnered with Clever, a free service that can introduce you to great agents in your area. Best of all, Clever pre-negotiates low listing fees of just $3,000 or 1%. Learn more now!
How much will iBuyers offer for my home?
Research shows that iBuyers usually pay approximately 1.3% less than fair market value β or roughly 98% of what your home is worth.
Though that doesn’t sound like a major difference, it can add up to thousands. For example, if your home is worth $300,000, you’d lose $3,900. And that’s before service fees.
To arrive at a price, iBuyers consider a range of factors including:
- Comparable recent sales in your area
- Analysis from in-house experts
- Proprietary algorithms using data sets from your market
- Your home’s overall condition, including unique features or finishes
Unfortunately, there’s usually little room to negotiate with iBuyers β so you’ll have to decide if you want to take the cash offer or walk away.
How much are iBuyer fees?
In general, iBuyer fees range from 5-12%. In most cases, you’ll also have to pay for closing costs (1-3%) and repairs (1-2%).
Depending on which iBuyer you choose, you may end up paying as much in fees β or more! β than you would when listing on the open market.
If you want to sell fast without sacrificing thousands from your proceeds, our friends at Clever can help. Clever’s extensive network of partner agents come from the nation’s leading brokerages AND work for low, pre-negotiated rates of just $3,000 or 1% in listing fees.
How do iBuyers make money?
iBuyers make money in three different ways:
- Fees: Most charge you a percentage of the value of your home when they purchase your property.
- Home appreciation: iBuyers aim to resell your home for more than they paid for it. They do this by concentrating purchasing efforts in real estate markets where properties go up in value quickly.
- Selling leads: Some iBuyers will sell your contact details when you request an offer from them. For example, Zillow Offers sells user data to local real estate agents, who will then be able to contact you about selling your home.
How to find iBuyers near me
One of the major limitations of selling to an iBuyer is coverage. Most iBuyers only focus on specific markets or metro areas. To find iBuyers near you, select your state in the table below. Then, click on the company name to learn more.
| Company | Service fees | |
|---|---|---|
| Opendoor | 3.5-5% | Alabama, Arizona, Colorado, Florida, Georgia, Idaho, Indiana, Minnesota, Missouri, Nevada, North Carolina, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Utah |
| Zillow Offers | 1.5-7.9% + 6% selling costs | Arizona, California, Colorado, Florida, Georgia, Minnesota, Nevada, North Carolina, Ohio, Oregon, Tennessee, Texas |
| Offerpad | 6-10% | Alabama, Arizona, Colorado, Florida, Georgia, Indiana, Nevada, North Carolina, South Carolina, Tennessee, Texas |
| RedfinNow | 6-12% | Arizona, California, Colorado, Maryland, Massachusetts, Nevada, Oregon, Texas, Virginia, Washington, Washington D.C. |
| Knock | 1.25% of new homeβs purchase price + $1,450 for processing and underwriting | Arizona, California, Colorado, Florida, Georgia, Minnesota, North Carolina, South Carolina, Tennessee, Texas |
| Orchard | 6% | Colorado, Georgia, Maryland, North Carolina, Texas, Virginia |
Other ways to sell your home
If you’re on the fence about iBuying, or just exploring your options, we recommend speaking with a top real estate agent in your area.
An agent who’s familiar with your local market will know how fast homes are selling near you. They’ll know how to price and market your home to meet your goals β whether that’s selling as quickly as possible, getting the best price, or both.
If youβre interested in learning more, weβve partnered with Clever, a free agent matching service available nationwide. Clever’s team can help you decide whether iBuying is a viable option or one that leaves money on the table. Plus, sellers who list with Clever can save thousands in realtor fees, thanks to pre-negotiated listing fees of just $3,000 or 1%!
Related reading
If youβre interested in more information about the best iBuyers or selling your home quickly, check out the following resources.
What Companies Offer the Lowest Real Estate Commission Fees? Emerging real estate models promise to make the standard 6% realtor commission a relic of the past. We compared leading low commission companies to help you find the best option!
We Buy Houses For Cash Companies: Incredible Deal or Predatory Scam? Cash buyer companies promise to make near-instant cash offers on homes. While this convenience can help some sellers, low offer prices can leave others feeling nickel and dimed. Learn more.
What Customers Have To Say About Opendoor: Opendoor is our choice for the best iBuyer company with its transparent pricing and wide coverage. Find more Opendoor reviews from customers, as well as an in-depth guide to how this service works.
FAQs
What is the best iBuyer company?
With a wide range of locations and relatively low service fees, Opendoor stood out as the best iBuyer company in our rankings. Read more Opendoor reviews from customers now!
How much does it cost to sell to an iBuyer?
In general, iBuyer fees range from 5-12%. In most cases, you'll also have to pay for closing costs (1-3%) and repairs (1-2%). If you want to sell for top dollar and earn more from your home sale, we recommend working with a low commission real estate company. Learn which companies have the lowest fees!
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