What Is iBuyer?

iBuyers ('instant buyers') use automated valuation models to generate fast offers online. They built their model around homes in good condition in standardized suburban markets.

Key differences from a local cash buyer: iBuyers typically charge service fees of 5% or more, they generally won't buy distressed properties, homes needing major repairs, or houses tangled up in probate or foreclosure, and you deal with a national platform rather than a local person.

For a distressed property, an inherited home, or a house needing real work, a local cash buyer is usually the more realistic option — iBuyer algorithms tend to decline these outright.