Selling your home is one of the most stressful things any person can do. The process can be lengthy and the stress can really take its toll on you.
Whether you’ve been left high and dry by an unreliable prospective buyer, or you’re simply looking to sell and move on as quickly as possible, iBuyers provide a hassle-free and super simple way of selling your home at (or near) market value without the need to deal with endless potential buyers and time-consuming and costly open houses or private viewings.
Here, we’re going to walk you through the process of selling your home using an iBuyer, looking at why this might be a good option for you. We’ll cover some of the top-rated companies that offer this service and provide you with ways to sell your house fast.
What is an iBuyer?
An iBuyer is also commonly known as an instant buyer. More often than not, iBuyers are actually investment companies that use technology to make an instant offer on your home.
Selling to an iBuyer is by far the quickest way to sell your home as it cuts out all of the middlemen and the hassle of dealing with potential buyers who might be unreliable. There’s also no need for a real estate agent when selling to an iBuyer, which reduces your additional seller fees and may increase the amount you walk away with.
Each iBuyer will operate slightly differently, but in most cases, they’ll use some basic details about the home and open information regarding the local property market to generate an offer.
Typically, an iBuyer will operate as an all-cash buyer. This means there will be no waiting around for banks or mortgage lenders to process the transaction.
There are various pros and cons associated with selling to an iBuyer, many of which we’ll cover in more detail later, but the long and short of it is that if you’re looking for a quick sale, iBuyers are a great option. But, if you’re looking for the best price and have a little more time to play with, you might be better off taking your home to market the traditional way.
Before selling to an iBuyer, be sure to use home value estimators to get a better idea of what your home is worth.
Best Options for Selling Your Home Fast
Below, we’re going to take a look at five of the most popular and reputable iBuyers that could be willing to buy your home.
Zillow is a well-known real estate marketplace that provides a platform through which you can buy, sell, or rent a property. As well as offering guidance and assistance with selling your home traditionally through an estate agent, Zillow also operates as an iBuyer through their Zillow Offers service.
To sell your home with Zillow Offers, you’ll need to head to the company website and fill out an initial application with some information about the property and your eligibility. Zillow will then be in touch to arrange an in-person evaluation with one of their Zillow advisors and will provide you with an offer based on the information you provided and data on other nearby properties.
The offer comes with no obligations and you’re free to accept or decline. If the offer is accepted, you choose the closing date and Zillow will transfer the funds within a few days. The process really couldn’t be any simpler, just be sure to factor in the 5% service fee that will be deducted from the sale price, which is similar to the fee you would pay to realtors with a traditional sale.
Here is a more in-depth review of Zillow Offers and the service they provide, which will help you should find all of the information you’re looking for.
One of the leading iBuyers in the United States, Opendoor is a convenient and reputable company when it comes to selling your home quickly.
The great thing about Opendoor is that you can have a preliminary offer for your home within minutes of submitting an initial application. They then ask sellers to carry out a virtual walkthrough of the home using a mobile phone or video camera, eliminating the need for an in-person valuation.
Opendoor will then provide a final offer and you’re free to choose your closing date and receive your money within a few days.
It’s worth noting that there are some eligibility restrictions with Opendoor, as with many other iBuyers. They will only purchase homes built after 1960 that are valued between $100,000 and $500,000. There are some other restrictions too that can all be found on the Opendoor website, and they will also charge a 5% service fee.
Offerpad operates in a very similar way to both Zillow Offers and Opendoor. Simply head to the Offerpad website, fill in some basic details about the property with some photos and videos if possible, and Offerpad will respond within 24 hours to provide you with their no-obligation, cash offer quote.
One of the major pros of selling your home with Offerpad is that if you’re unhappy with the cash offer, you can also take your home onto the open market through their platform, with the security of the cash offer to fall back on if needed.
Like Zillow Offers and Opendoor, Offerpad will take 5% of the sale price as a service fee. It is also important to note that Offerpad will take a 1% cancellation fee and require sellers to sign a legally binding contract before their final offer has been provided. This might be off-putting to some sellers.
The eligibility criteria for selling your home to Offerpad are much the same as those laid out by Opendoor and can be found in full detail on the Offerpad website.
If you choose to sell your home to WeBuyHouses.com, you’ll need to follow the same procedure of filling out a quick application form on the company website. A member of the WeBuyHouses.com team will then be in contact to arrange a property viewing with one of their real estate experts. Following the in-person evaluation, you could receive your no-obligation cash offer within as little as 24 hours.
There are no fees to pay when selling your home to WeBuyHouses.com which is a nice little bonus, although they are said to offer slightly lower prices than some of the previously mentioned iBuyers.
WeBuyHouses.com will buy your home in almost any condition. There’s no need to carry out any repairs, and they will even handle problem tenants who may still be occupying the property at the time of sale.
The process of selling your home with RedfinNow is equally straightforward. Head to the company website and request an offer by filling out some basic details about the home. RedfinNow will then assess the property based on these details and other data that available and make an offer on the property.
If you accept this initial offer, RedfinNow will then arrange for one of their real estate professionals to carry out an in-person inspection and if all goes well, the money can be in your bank within 10 days, or whenever you choose to close.
There are some additional costs that come with selling your home through RedfinNow. Firstly, you’ll need to pay a service fee which will typically range from 4% to 10% of the cash offer. You will also be liable to pay a repair fee that’s determined during the in-person inspection.
Unlike WeBuyHouses.com, Redfin Now will not purchase any property that is currently occupied by a tenant.
Pros and Cons of Using an iBuyer
Selling to an iBuyer might sound totally hassle-free and super convenient, and it definitely can be, but there might also be some potential drawbacks or risks associated with selling your home in this way. Let’s consider these here:
Pros of Using an iBuyer
1. Super Quick and Convenient
Selling through an iBuyer is undoubtedly the quickest and most hassle-free way of selling your home. With many of the iBuyers listed above, you could have the cash in your bank in as little as 14 days after submitting your initial application. This is much quicker than the traditional house sale which can take an average of 2 to 3 months to complete.
2. No Need to Stage the Property for Viewings or Real Estate Listings
Another big advantage of selling with an iBuyer is that you won’t need to spend time and money staging the property to make it appealing to potential buyers who would ordinarily come to view the property.
3. Save on Realtor Fees and Major Repair Costs
Finally, by selling with an iBuyer you eliminate any real estate agents fees (assuming you hadn’t already listed with an estate agent prior to approaching the iBuyer), and you could save yourself a considerable amount of money on any costly repairs that would need to be carried out before the property could go on the market.
Cons of Using an iBuyer
1. You Might Get a Better Offer by Putting the Property on the Market
There’s no hiding the fact that you have a good chance of getting a better offer on the property if you put it on the traditional housing market. By staging the home and opening it up to numerous potential sellers, you might be able to drive up the asking price and ultimately come away with more money in exchange for more time and effort spent throughout the selling process.
2. There May Be Hidden Fees
Some iBuyers will have hidden fees that are not clearly displayed on their websites. Service fees and repair fees are common and will often vary depending on the property itself. Be sure to look out for these as well as any other fees and if you’re unsure, give the company a call or speak to your appointed expert to clarify exactly what you’re paying for.
3. You Must Meet the Specific Eligibility Requirements
The final con on this list is the fact that not every home is eligible for sale through an iBuyer. Typically, homes below $100,000 and above $600,000 in value will not be eligible. Homes that are larger than one acre are also not usually eligible, and each company will have different specific requirements and restrictions on which homes they will buy.
Selling your home through an iBuyer is extremely quick and hassle-free in most cases. There are undoubtedly pros and cons to evaluate, but if you’re looking for a super convenient sale within a short timeframe, this is an excellent option.
Each iBuyer will operate differently and most will offer no-obligation offers, so we recommend approaching multiple iBuyers and then working with the one that provides the highest offer and the service that best suits your needs.