Top iBuyer Companies

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  Written by Katy Byrom

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  Edited by Andrew Whytock

Top iBuyers | How much do iBuyers pay? | Which iBuyer pays the most? | How iBuyers work | Pros and cons | Alternatives

iBuyer companies purchase homes as is, pay in cash, and close in as little as 1–2 weeks. So if your goal is an easy home sale — free from repairs, showings, and contingencies — an iBuyer is worth looking into.

However, many iBuyer’s offer below market rates, and some charge additional fees. You’ll want to compare offers from multiple iBuyers and cash buyers before making a final decision.

That’s why we recommend Clever Offers — simply fill out this form and they’ll find the best cash offers in your area.

For a more detailed look at the best iBuyer companies, check out the detailed research we’ve compiled below, including interviews with real customers.

The best iBuyer companies for 2024

1. Clever Offers

2. Opendoor

3. Offerpad

4. Knock

5. Orchard

6. Homelight Simple Sale

How much will an iBuyer pay for my house?

iBuyers generally pay less than fair market value. However, accounts from actual customers are mixed. Some sellers find that iBuyers’ offers are in line with or even exceed realtors’ expectations of their sale price, while others find that their offers fall short. It often depends on the market. 

“We used Opendoor and probably left about $10–12,000 on the table on a $430K home,” says a Reddit user who sold to Opendoor in 2023. “Well worth it, especially if you’re using the proceeds to buy another home. No contingencies.”

Another seller on the platform claims that Opendoor offered them 15% below their home’s market value: “We tried Opendoor and their offer sucked, around 15% less than market for a turnkey house in a high demand area and their commission + service fee was still 6%.”

Yet another ther Reddit user claims to have gotten more for their home than what the company resold it for: “In my case, Opendoor paid me about 20% more than what they eventually resold my house for a few months later. So it’s worth looking into.”

Which iBuyer pays the most?

We talked to two home sellers — Jesse Zappia and Bradley Carpenter — both of whom sold their homes to Opendoor in 2022. Both were offered just slightly below market value for their homes. However, their initial offers were lowered significantly following a mandatory home inspection.

Example 1: Opendoor’s initial offer was higher

After getting an initial bid from another iBuyer, Jessie Zappia received a higher preliminary offer from Opendoor. “I think their initial offer was somewhat closer to the $600,000 number — it might have even been over,” recalls Zappia.

However, following Opendoor’s home inspection, they came back with an offer that was closer to $560,000. 

“It was a significant jump, to where it caught my attention,” says Zappia. “But overall, it still worked for us. It was within the range of what we were looking for to make a sale on the home, considering what we had spent on it.” 

In addition to a lower final offer, Zappia was charged $5,700 in repairs (about 1% of the sale price), which he felt was reasonable given the home’s condition. However, he notes that “Had it been significantly higher, I probably would have argued that or even walked away.”

Example 2: Offerpad’s initial offer was higher

Bradley Carpenter had a slightly different experience with Offerpad vs. Opendoor. In fact, he had initially gone under contract with Offerpad, which offered more for his house in Kansas City. However, after a home inspection, Offerpad dropped their offer price by $40,000 — nearly 20% off the initial estimate. 

By contrast, Opendoor’s final offer came in just $7,000 lower than the preliminary offer, and he ended up selling to them for $230,000 in July 2022. Given the amount of work needed and listing price a realtor had quoted him, he felt like it was a fair deal.

Opendoor eventually resold the house for $247,000 after repainting the entire interior and exterior, restaining the back deck, and replacing the carpet. However, it took 10 months for the company to secure a buyer.

How do iBuyers work?

iBuyer companies are relatively new to the real estate industry, but most share the same basic process. If you decide to sell your home to an iBuyer, you’ll:

1. Submit information about your home online
2. Receive an initial cash offer
3. Complete a home inspection
4. Review an adjusted offer that accounts for repairs
5. Accept the cash offer and close

Most iBuyers also have the same general guidelines for which homes they’ll make an all-cash offer on.

If your home isn’t eligible to sell to an iBuyer, you can always work with a local real estate agent to find a buyer on your timeline. And, even if your property is eligible, it’s always a good idea to get a comparative market analysis from a local realtor to see what your home could sell for on the market.  

How do iBuyers make offers?

To determine the price of a cash offer, iBuyers consider a range of factors, including:

• Recent sale prices of comparable homes in your area
• Analysis from in-house real estate experts
• Market data, such as how quickly homes values are rising
• Your home’s overall condition, including unique features or finishes

The best way to find out how much an iBuyer will pay for your home is to request a cash offer. iBuyers provide free, no-obligation offers, so you can compare your options before deciding to move forward. 

Just be sure you’re comparing final offers (and not initial estimates) before making a decision, since iBuyers often adjust their offers lower following an inspection.

How do iBuyers make money?

iBuyers make money in a few different ways:

• Fees: Most charge you a percentage of the value of your home when they purchase your property — usually about 5%.
• Home appreciation: iBuyers are essentially real estate investors who aim to resell your home for a profit. They do this by concentrating purchasing efforts in real estate markets where properties go up in value quickly. 
• Repair deductions In recent years, iBuyers like Opendoor have gotten a reputation for charging exorbitant repair fees only to re-list the home without actually making the repairs. “They don’t take any of the repair money for repairs, says this Reddit user, who got an offer from Opendoor in 2022. “I looked at a few of the houses they had bought in my neighborhood and besides cleaning the interior, they did nothing.”

Pros and cons of selling to an iBuyer

Best alternatives to selling to an iBuyer

Look into home prep programs available through local brokerages

If you don’t want to put time or money into fixing up your house before selling — but want to maximize your home value — you may want to consult with a local brokerage offering home prep as a service.

“There are several presale concierge services that will hire the workers and get the projects done and take payment from the proceeds of the sale,” says realtor Tamar Asken of Parsol Realty Group.

“At my brokerage, we offer a program called InnoEquity,” says Innovate Realty CEO Suzanne Seini. “The program enables homeowners to tap into their equity with no out-of-pocket costs and have pre-listing renovations done to their homes. The homeowner would then pay for the work when they close escrow.” 

Programs like these can help you sell fast for more money with surprisingly little hassle. Rather than having to come up with the money for repairs and complete the work yourself, your brokerage will hire a trusted contractor willing to delay payment until closing.

Consider signing a novation agreement with an investor

Another option to consider is to pursue a novation agreement with a local investor. With this type of agreement, an investor will fix up your home, sell it on your behalf, then pay you out of the proceeds when it closes.  

Novations are a good option for when you want to sell at a higher price without the hassle. They’re also appealing to investors, since they can make a profit without having to come up with the capital to purchase the home outright before breaking ground on a renovation. 

Whereas an investor might typically offer 70% of the home’s estimated market value, a novation agreement can net you as much as 90% of your home’s post-renovation sale price. Plus, you won’t have to pay service fees or realtor commissions out of the proceeds.

This approach works best when you’ve already vacated the house or can easily line up another place to stay, enabling the investor’s crew to quickly come in and complete the renovation. 

To explore this option, you can contact local investors directly or use a free service like Clever Offers to source these types of investors for you.

Sell your house as-is

If you’re on the fence about iBuying, but don’t want to sink time and money into repairs, ask a couple of real estate agents what they think your home could sell for in its current condition.

When selling a house as is, “the profit you make really depends on the market you’re in,” says realtor Elisha Lopez. “In Florida, for example, many sellers still see competitive offers on homes that need repairs.”

Listing your home as is can help you appeal to a wider pool of buyers than simply getting offers from an iBuyer or two. Potential buyers include local investors, we buy houses companies, and traditional buyers in search of a fixer. You can specify in your listing that you won’t be making repairs and even offer a set amount in repair concessions to speed up the negotiations.  

While buyers are still entitled to conduct an inspection, a good agent will negotiate any repair requests — something you have less control over when selling directly to an iBuyer.

Just be sure to talk to multiple agents before choosing a realtor. 

“Anyone can list a home for a lower price, but if investors and buyers are looking for a home in a certain neighborhood, they might be willing to pay top dollar no matter what the condition of the house is,” advises Lopez. “A less experienced listing agent could compare the home to other homes in the same condition that recently sold and lower the sale price by 10-20%.”

⚡ Take the guesswork out of selling your home: Explore a full range of offers from local, regional, and national cash buyers. Plus, get agent proposals sent straight to your inbox. Compare all your options in one place, with no added fees or obligation to move forward.

FAQ

Methodology

To find the best iBuyers for 2024, our team analyzed thousands of online reviews, interviewed past customers, talked to realtors and investors familiar with iBuying practices, and looked at publicly available data on iBuyer purchases.

Related reading

If you’re 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! 

The best companies that buy houses for cash? Like iBuyers, local and regional cash buyer companies make near-instant cash offers on homes. But unlike iBuyers, they’re often willing to purchase homes in ANY condition. If you’re looking for reputable cash buyers, see which companies made our “best of” list.

What Customers REALLY 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.