i Buyer
An i Buyer is a company that makes instant cash offers on homes using technology. Learn how i Buying works and its pros and cons for sellers.
Definition
An i Buyer is a company that uses data analytics and algorithms to make near‑instant cash offers on homes. Sellers request an offer online, and the i Buyer uses property data, recent sales, and automated valuation models to generate a price. If accepted, the company conducts a quick inspection, closes on the property within days or weeks, makes repairs or improvements, and then resells the home for a profit. i Buying offers speed and convenience to sellers but may result in lower net proceeds compared to traditional sales. Fees may be comparable to or higher than agent commissions. The model works best for standardized homes in predictable markets.
Why It Matters
Sellers who take an instant offer are buying certainty and a closing date of their choosing. The price is a service fee of roughly 5% to 8% plus a repair deduction assessed after the offer, so the figure you accept is almost never the figure you net. The honest comparison is offer minus fees against market sale minus selling costs, and that gap regularly runs into five figures.
Examples
A $612,000 instant offer becomes $543,000 net after a $19,000 repair deduction at the walkthrough and a 6.5% service fee.
A homeowner relocating in 30 days accepts $28,000 under market rather than carry two mortgages at $3,100 a month for four months.
A 1920s Craftsman with a converted attic gets no instant offer at all, because the model has no comparable sale to price nonstandard square footage.
Tips
Break the offer into parts in writing before the walkthrough: gross price, service fee, estimated repair deduction, closing costs. Companies quote gross and sellers hear net.
Line up an instant offer and a broker price opinion in the same week, then compare net proceeds line by line. If the gap is wide, a flat-fee MLS listing narrows it further by taking the listing-side commission out of the equation.
If speed is the real motivation, price it: multiply your monthly carrying cost by the extra months a traditional sale would take, and see whether that number beats the fee difference.
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