The best iBuyer companies, ranked | Find iBuyer companies near me | Fees | How it works | How much do iBuyers pay? | How iBuyers make money | Other ways to sell
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 your home to an iBuyer company is convenience. The best iBuyers don’t require you do do 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 don’t offer as much as the typical home buyer. After service fees β which are usually 5% of the sale price or more β you’ll likely earn quite a bit less than what you’d get selling on the open market.
By contrast, listing your home with the help of a real estate agent can result in a higher sale price, especially in competitive markets where you could receive multiple offers.
Our friends at Clever Real Estate can help you get instant offers from Opendoor, Offerpad, and other top iBuyers near you. You only need to enter a few basic details about your home, and an agent will gather offers for you and present them alongside a home valuation that accurately reflects your home’s current value.
The best iBuyer companies in 2022
| Company | Service fee | What makes this company unique |
|---|---|---|
| πΒ Offerpad | 5% | Free moving service within 50 miles |
| π΅Β Opendoor | 5% | Low fees and consistent service |
| π΄Β RedfinNow | 5-13% | Buys vacant or owner-occupied homes |
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.
There are three major iBuyer companies in our list that currently account for the majority of sales: Offerpad, Opendoor, and Redfin Now. Zillow used to have a large iBuying division called Zillow Offers, but the company stopped buying houses in late 2021.
Of the three largest iBuyers, Offerpad came out as the best overall in our rankings. Offerpad’s relatively low service fees, positive customer reviews, and flexible closing date window make it one of the best options for home sellers.
1. Offerpad
Fast closing
- 5% service fee
- Close in just 8 days
- Great customer service
Offerpad can provide home sellers with a fast cash offer and quick closing (as little as eight days!). We noticed that most recent Offerpad reviews are positive, with home sellers noting that Offerpad reps were friendly and helpful throughout the selling process.
Pros
- Close in just eight days
- No need to repair or prep home
- Extended stay option for home sellers
Cons
- Some customers report high repair costs that reduced their final offer
- Free local moves are only available within a 50-mile radius
Offerpad is available in 25 metro areas across AL, AZ, CA, CO, FL, GA, IN, KS, MO, NV, NC, OH, SC, TN, TX.
Customer reviews of Offerpad are mostly positive, with an average rate of 3.7 across 319 reviews.
In 2015, Offerpad became the nation’s second major iBuyer company. Offerpad is currently active in 25 cities.
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.
2. Opendoor
Best tech
- 5% service fee
- Available in 40+ cities
- 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 47 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 47 major markets in AL, AZ, CA, CO, FL, GA, ID, IN, MN, MO, NV, NJ, NY, NC, OH, OK, OR, SC, TN, TX, UT, VA.
Customer reviews of Opendoor are mostly positive, with an average rating of
4.3 across 2733 reviews.
Opendoor was the first major iBuyer company, and it still buys the most homes of all the iBuyers.
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 47 metro areas across the U.S., with plans to expand to new locations. Its service fees are also relatively low β just 5% of the sale price, plus deductions for 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 Read: Our complete review of Opendoor. |
3. Redfin Now
As-is iBuyer
- Fees from 5-13%
- Close in 10 days
- Buys vacant or owner-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 10-90 days
Cons
- Fees can be as high as 13%
- No home trade-in incentive
- No late checkout option
RedfinNow is available in metro areas across .
Because Redfin Now is the smallest iBuyer, reviews of the service aren’t widely available. However, across 2733 reviews the company has an average rating ofm4.3 out of 5.
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 broad 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.
There aren’t many RedfinNow reviews from real customers β though Redfin itself is a well-known and trusted real estate broker.
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.
| iBuyer purchase criteria |
|---|
| π A single family residential home, condo, or townhome |
| π» On a 0.5 to 1.5 acre lot |
| π Built after 1930 |
| π Within an eligible service area |
| π° 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?
The best way to find out how much an iBuyer will pay for your home is to request an offer. All of the iBuyers provide free, no-obligation offers, so you can even compare your options if you live in a city with multiple iBuyer companies.
In general, iBuyers pay less than you might be able to get selling your house on the open market. However, if houses in your area are selling quickly β in a matter of days rather than weeks β offers from iBuyers might be more competitive than they would be in a slow or average market.
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?
iBuyer fees range from 5-13%. In most cases, you’ll also have to pay for closing costs (1-3%) and repairs (1-2%).
| iBuyer service fees | |
|---|---|
| Opendoor | 5% |
| Offerpad | 5% |
| RedfinNow | 5-13% |
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.
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 |
| 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. |
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.
With Clever, you can explore all of your options β whether you want to sell to an iBuyer or list on the open market.
A local Clever agent can present you with offers from iBuyers and other cash buyers near you, and help you determine a fair listing price for your home. If you want to accept an offer from Opendoor or another iBuyer, your agent can negotiate on your behalf to make sure you get a fair deal.
If you decide you’d rather list your home, you’ll save thousands in realtor fees β the average Clever customer saves $9,000!
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, followed by Offerpad and RedfinNow. Read Opendoor reviews from actual customers now!
How much does it cost to sell to an iBuyer?
In general, iBuyer fees range from 5-13%. 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!
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.
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