An iBuyer is a company that buys homes directly from sellers for cash, using its own pricing model, so you can sell without listing, showings, or a buyer’s financing. You pay for the speed and certainty through a service fee and an offer that is usually below what the home might fetch on the open market.
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What Would an iBuyer Pay You? See competing cash offers on your home before you choose a buyer.
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What Is iBuying in Real Estate?
iBuying is a real estate model where a company prices your home using its own data, makes you a direct cash offer, buys the home, then repairs and resells it. You never list the property publicly. There are no open houses, no buyer mortgage approvals to wait on, and no negotiating with strangers.
The company sets the price from market data and property details. If you accept, you pick a closing date. The iBuyer handles the rest.
How an iBuyer differs from a traditional buyer
A traditional buyer needs a mortgage, an inspection, and often weeks of back-and-forth before a deal closes. An iBuyer removes all three friction points. There is no financing contingency, so the deal does not fall apart because a lender changed its mind. There are no showings, so you do not rearrange your schedule for strangers walking through your home. And the closing date is set when you accept, not whenever a buyer’s lender decides it is ready. Cash buyers are a large part of the market: all-cash purchases made up 27% of existing-home sales in September 2026, according to the National Association of Realtors.
iBuyers vs. “we buy houses” investors
Both types of buyers pay cash and skip the MLS. The difference is in what they buy and what they pay. iBuyers focus on homes in good condition and typically offer 85% to 100% of market value before fees. “We buy houses” investors buy homes in any condition, including properties with major structural problems or code violations, but they pay far less: typically 50% to 70% of after-repair value. If your home needs major work, an investor may be the only cash buyer willing to make an offer. If your home is in decent shape, an iBuyer will usually offer more.
One iBuyer vs. a marketplace
Going directly to one iBuyer gives you one offer. A cash offer marketplace lets several buyers compete for your home at the same time. Some brokerages now run their own versions of this: Orchard’s Cash Offer Marketplace, for example, sources offers from more than 200 buyers, including Opendoor and Offerpad. See how those three options compare in our Orchard vs Opendoor vs Offerpad guide.
How Does the iBuying Process Work?
The process runs in five steps. The details below come from Opendoor’s own Help Center and Offerpad’s published closing timelines, so they reflect how the two main iBuyers actually work in 2026.
1. Request an offer online. Enter your home’s address, bed and bath count, condition, and any known issues. This takes about 10 minutes. No agent is involved yet.
2. The iBuyer assesses your home. Opendoor will show you its service charge and the “condition adjustment” (repair costs) in the offer before you accept, so you can see each line item. Offerpad charges a flat 5% service fee and about 1% in closing costs, as confirmed on Offerpad’s service page.
3. Accept or walk away. Opendoor does not take counteroffers on the base price. You can accept the offer as shown or decline with no obligation.
4. Choose a closing date. With Opendoor, you pick a date from about two weeks up to 60 days out. Opendoor also offers a late checkout of up to 17 days after closing if you need time to move. With Offerpad, closing runs 8 to 60 days, and the company includes a free local move.
5. Close and get paid. The iBuyer handles title and escrow. Opendoor also offers a program called Cash Now, More Later: you receive most of your proceeds at closing and a second payment after Opendoor resells the home, minus its service charge and closing costs.
For a side-by-side look at how these two iBuyers differ on fees and flexibility, see how Opendoor and Offerpad compare.
What Does an iBuyer Charge?
iBuyer costs have two parts: the service fee and the repair adjustment. They appear as separate line items in the offer. Sellers who look only at the service fee sometimes underestimate the true cost until the final offer sheet arrives.
| Company | Service fee | Closing costs | Repair adjustment |
|---|---|---|---|
| Opendoor | Varies by home; shown in each offer | Shown in each offer | Itemized as “condition adjustment” |
| Offerpad | 5% flat | About 1% | Itemized after assessment |
What fees look like on a $350,000 home
This is an illustration, not a guaranteed outcome. On a $350,000 home, the standard offer range before fees is $297,500 to $350,000 (85% to 100% of market value). A 5% Offerpad service fee takes that to $282,625 to $332,500. Subtract about 1% in closing costs ($2,975 to $3,500) and you are left with $279,650 to $329,000 before any repair adjustment. Opendoor’s service charge varies by home, so the total will differ depending on what its offer shows.
For context, research from the National Bureau of Economic Research found iBuyers paid on average about 3.6% below market before fees. The service fee and repair costs come on top of that gap.
For comparison: every 1% of commission on a $350,000 traditional sale is $3,500. See the full cost of selling a house for how those numbers stack up across both paths.
The repair adjustment
After the walkthrough, the iBuyer adjusts its offer for estimated repairs. The number you saw in step two may not be the number you receive in the final offer. Compare final offers, not first estimates. Repair adjustments are sometimes negotiable: you can provide a competing quote from a licensed contractor and ask for a review of specific line items.
Pros and Cons of Selling to an iBuyer
For the full breakdown of every scenario, see the full pros and cons of iBuyers. Here is the core list.
Pros of selling to an iBuyer
- Speed. You can request an offer today and close in as little as 8 to 14 days.
- A closing date you choose. Both main iBuyers let you pick any date inside their window, so you can match your move.
- No showings or open houses. The iBuyer never markets your home to the public.
- No buyer financing to fall through. Cash purchases carry no mortgage contingency.
- Sell as-is. You do not fix anything before closing. Repair costs are priced into the offer instead.
Cons of selling to an iBuyer
- Offer below open-market value. The NBER data puts the average gap at about 3.6% before fees. The service fee comes on top.
- Claims worth checking. In 2022 the Federal Trade Commission said most people who sold to Opendoor made less than they would have on the open market. Opendoor paid $62 million to settle and disputed the allegations.
- The service fee. Offerpad charges 5% plus about 1% in closing costs. Opendoor’s charge varies and is shown per offer.
- The repair adjustment. The final offer may be lower than the estimate if the walkthrough turns up more work.
- Home criteria. Opendoor buys homes built after 1930, priced up to $1.4 million, on lots up to 2 acres. Homes outside those limits do not qualify.
- Geographic limits. Offerpad buys in selected markets only. If your city is not covered, an iBuyer is not an option.
iBuying vs Traditional Home Selling
The table below covers the eight factors that matter most to sellers choosing between the two paths. For a deeper comparison, see how iBuyers compare with selling through an agent.
| Factor | iBuying | Traditional sale |
|---|---|---|
| Who buys | The iBuyer company | A buyer on the open market |
| Offer price | 85% to 100% of market value, before fees | Near or above market value |
| Service fee | Varies; Offerpad 5% flat | None |
| Agent commission | None | Varies by negotiation |
| Repairs | Priced into offer; no pre-listing work | Often required before listing |
| Showings | None | Multiple |
| Financing risk | None (cash purchase) | Moderate (mortgage contingencies) |
| Closing time | 8 to 60 days | 30 to 60 days typical |
| Best for | Speed, certainty, no-hassle close | Maximizing net proceeds |
Which iBuyer Companies Are Active in 2026?
The two active iBuyers
Opendoor buys homes across the lower 48 states. Its service charge varies by home and is shown in each offer, along with closing costs and the condition adjustment. Opendoor does not accept counteroffers on the base price.
Offerpad buys in selected markets. It charges a flat 5% service fee and about 1% in closing costs, and it includes a free local move with every sale.
For a full list of alternatives to the two main companies, see Opendoor alternatives and companies that buy houses for cash.
iBuyers that shut down
Zillow Offers announced its wind-down on November 2, 2021, after a $304.4 million inventory write-down in the third quarter of 2021. In its SEC filing, Zillow cited home pricing unpredictability and capacity constraints, and said it had bought homes at higher prices than it now expected to sell them for.
RedfinNow closed on November 9, 2022. Redfin said it was winding the business down to focus on its core businesses as the cost of capital rose.
Is iBuying Right for You?
iBuying and traditional selling optimize for different things. Neither is better in every case.
iBuying fits best when:
- You have a hard moving deadline, such as a job relocation, and cannot afford a sale that drags on.
- Your home meets the criteria: built after 1930, under $1.4 million, in a market where Opendoor or Offerpad buys.
- You value a certain close over squeezing the last dollar out of the sale price.
Listing likely nets more when:
- Your market is competitive and homes routinely sell above list price.
- Your home is in excellent condition and would photograph well for buyers.
- You have 60 to 90 days to let the market do its work.
When neither iBuyer fits:
If your home is outside their coverage area, below or above their price range, or needs major work that would exceed their repair adjustment range, a direct iBuyer offer may not be available. In that case, comparing offers from multiple cash buyers gives you the same speed advantage without being limited to one company’s price.
iBuyer.com is a marketplace that connects sellers with multiple vetted cash buyers at once. You submit your address, receive competing offers, and choose the one that works best for you. There is no MLS listing, no agent commission, and no obligation to accept any offer. Get competing cash offers on your home and see what buyers will pay before you decide.
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Get My Market ReportFrequently Asked Questions
An iBuyer is a company that buys homes directly from sellers for cash, using its own pricing model, so you can sell without listing the home, holding showings, or waiting on a buyer’s mortgage.
iBuying is selling your home directly to an iBuyer: you request an offer online, the company assesses the home, and if you accept, you close on a date you choose.
Offerpad charges a 5% service fee plus about 1% in closing costs. Opendoor’s service charge varies by home and is shown in each offer, along with closing costs and any repair costs.
Usually, yes. Research from the National Bureau of Economic Research found iBuyers paid on average about 3.6% below market before fees, and the service fee and repairs come on top of that.
With Offerpad you can close in 8 to 60 days; with Opendoor you choose a closing date from about two weeks up to 60 days.
Opendoor, which buys across the lower 48 states, and Offerpad, which buys in selected markets, are the two main iBuyers active in 2026. Zillow Offers wound down in 2021 and RedfinNow closed in 2022.
Zillow announced the wind-down of Zillow Offers on November 2, 2021, after writing down the value of its home inventory by $304.4 million in the third quarter of 2021.
Criteria vary by company. Opendoor buys homes built after 1930, priced up to $1.4 million, on lots up to 2 acres. Homes outside those limits do not qualify.
iBuyers focus on homes in good condition and offer closer to market value; “we buy houses” investors buy homes in any condition, typically at 50% to 70% of after-repair value.
Yes. Instead of requesting one iBuyer’s offer at a time, you can compare competing cash offers on your home through iBuyer.com.
Reilly Dzurick is a licensed real estate agent with over six years of experience and a member of the iBuyer.com Market Insights Team, covering national trends in home selling and the evolving iBuyer landscape. Her firsthand experience working with buyers and sellers gives her a practical perspective on how these platforms impact real homeowners. She holds a degree in Public Relations, Advertising, and Applied Communication.
