Whether you are a buyer or a seller, in 2022, knowing about iBuyers is a must. While iBuyers have been around for some time — iBuyers first emerged in the mid-2010s — they are becoming more dominant in the real estate market and presenting more sellers with offers that they just can’t refuse.
Unlike someone who buys a home to live in, iBuyers are companies that are in the market for buying homes quickly to make a profit — the I stands for “Instant.” If you are a seller, you’ll want to consider if you are open to offers from iBuyers. As a buyer, you should be aware that you may be in competition with iBuyers.
How is an iBuyer different from a cash buyer?
A cash buyer is one that pays for a home without mortgage financing and an iBuyer is one type of cash buyer. Cash buyers might buy a home to live in it, but iBuyers are a business that might flip the home after making minor improvements, buy the home to rent it, or keep it as an investment. When selling a home to an iBuyer, you could get an offer as quickly as within 24 hours. Other types of cash offers may not have the same speed, although they will no doubt be faster than those buyers who use mortgage financing.
The benefits of working with an iBuyer as a seller
If you need to sell your home in a hurry to move for work or other reasons, there is no doubt that working with an iBuyer is the way to go. It’s also possible that you could get more cash from your home by being open to going with an iBuyer — and that’s especially true now. A February 2022 report from real estate brokerage platform zavvie found that iBuyer offers peaked in Q2 2021 at 104.1% of market value, and was at 99.4% in Q4. At the end of 2021, iBuyers made up 1.3% of all home purchases in the U.S. When you sell your home following the traditional route, that means opening your home up to open houses and showings, and with iBuyers that step is eliminated. You can also likely skip some of the inspection and appraisal process, which is how you can sell your home so quickly when you go with an iBuyer.
iBuyer companies to know about in 2022
In 2022, there is no shortage of iBuyer platforms. The first platform was Opendoor, which debuted in 2014 aiming to offer a way to make it easier for sellers to reach their real estate goals. Offerpad offered a similar model in 2015.
In 2022, other companies aside from Opendoor and Offerpad that are among the top iBuyer companies (based on the number of transactions and states served) are RedFinNow, and Keller Offers. However, these companies don’t operate in every state, and you are more likely to be able to sell your home to an iBuyer if you are in Texas, Arizona, Florida, Georgia, or North Carolina. An alternative to these iBuying platforms is to work with SimpleSale for a competitive cash offer, in any state.
If you think you might be open to an iBuyer offer on the sale of your home, start by talking to your real estate agent to see if one of these speedy transactions could work for your real estate goals.