iBuyer Reviews: Are Instant Home Offers Worth It?

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iBuyers are online cash-offer real estate companies that help homeowners sell quickly (often in 10 to 14 days) without listing on the open market or making any repairs.^[1]

From instant cash offers to buy-before-you-sell arrangements, iBuyers provide customers with convenient and quick options to sell their homes.

But working with iBuyers comes with drawbacks:

• They operate as investors, often making below-market offers to resell homes for a profit. iBuyers usually offer up to 85-90% of a home's after-repair value.^[2]
• Some companies charge high service fees (6-8%) that exceed the costs of selling with a realtor.^[3]
• Customer service experiences can also be inconsistent, based on the online reviews we've analyzed.

If you're looking to sell your home quickly and get the best cash offer, Clever Offers is your best bet. Clever lets you compare multiple cash offers, helping you find the highest price and best terms from top cash buyers. Start today to see how much you can get for your home!

iBuyer reviews: Who should use an iBuyer?

Selling to an iBuyer works best for motivated homeowners who want to sell quickly. You may want to consider an iBuyer if you:

• Have a home that fits the company’s purchase criteria
• Need to sell your house before you can purchase a new home
• Want to avoid prepping your home for the open market
• Don’t mind working with sometimes fragmented customer service

However, an iBuyer might not work in your favor if you:

• Have a home that doesn’t meet the iBuyer’s purchase criteria
• Own a home in excellent condition that can sell for top dollar
• Prioritize profit when selling your house
• Prefer to build a relationship with your real estate company

Best iBuyers in 2024

Homeward summary

Homeward lets you accept an initial cash offer and make extra by selling on the open market. You also have a buy-before-you-sell option by borrowing against your current home’s equity.

Upfront cash offers are up to 89% of your home’s fair-market value, and you keep any additional profit once your home sells after accepting the cash offer. Discounts are also available when you bundle with Homeward mortgage and title.

However, the convenience of an upfront offer comes with a 6.5% service fee (more than working with a realtor) plus any additional home maintenance expenses. Learn more in our full Homeward review.

Pros and cons:

Pros:

✅Cash offer with potential to earn more

✅Buy-before-you-sell program

✅Choose your own listing agent

✅Save when you bundle services

“This program is great for anyone trying to sell their home quickly to get the proceeds to purchase another or just get their proceeds fast. The Homeward Team is very professional, responsive & explains the program in very detailed instructions.” - Lettie H., Google

Cons:

❌6.5% service fee

❌Confusing maintenance/repair fees

❌Additional closing costs

❌Poor communication

"Customer interaction was terrible. I was told that I was a good candidate for their buy first then sell my house later program. Once I submitted all documents things changed. It was hard to get in touch with my loan officer." - Larry M., Google

How it works

1. Find a local realtor and get preapproved for Homeward’s cash offer
2. Finalize the cash offer and close the deal
3. List your home on the open market with your chosen realtor
4. Sell your home and receive a check for the extra profit

Eligibility

You may qualify for Homeward’s cash deal + listing if:

• You own a single-family home or townhome
• Your home is valued between $200,000-1.7 million
• There are no unpermitted additions
• You didn’t use FHA financing to purchase your home

Multi-family dwellings, condos, and mobile homes do not qualify for purchase.

Best for

Homeowners who want the convenience of a cash deal with the potential to sell at a higher price point later on, or homeowners who want to buy a new home before they sell their current residence.

Orchard summary

Orchard allows you to sell your home on the open market with the security of a back-pocket cash deal.

The iBuyer’s flagship Move First program lets homeowners borrow against their current equity to make a non-contingent offer on a new home. Orchard then lists your old house, and you receive the remaining profits after fees. If it doesn’t sell in four months, you’ll sell to Orchard for an agreed-upon cash offer.

While it sounds like a great deal, Orchard’s services come at a premium. The iBuyer charges a 1.9% service fee plus around 6% in brokerage fees. Learn more in our full Orchard review.

Pros and cons:

Pros:

✅Buy a new home before selling

✅Make a non-contingent offer

✅Sell your home at full market value

✅Available cash offer

“Orchard relieved a lot of the stress with buying and selling a home. The greatest part was getting the equity advance which enabled us to purchase another home while our home was on the market. Our home sold above the initial offer and we received additional proceeds at closing.” - L. Small, Trustpilot

Cons:

❌1.9% service fee + 6% brokerage fees

❌Cash backup offer is below market value

❌Must use an Orchard realtor

❌Limited service area

“On paper it seems like a good deal - getting them to sell your home, and have a guaranteed buy offer in case the home does not sell. … Too good to be true? In my experience it was. Their guaranteed offer for the house if it did not sell was 15% lower than the price they suggested to list the house at.” - Rahul C., Trustpilot

How it works

1. Complete a home assessment by submitting info about your home
2. Access your home’s equity through an interest-free loan
3. Make a non-contingent offer on your new home
4. Move into your new home while Orchard preps your old home for sale
5. Sell your old home through an Orchard agent and receive the extra profit

Eligibility

To qualify for Orchard’s Move First program, you must:

• Own a single-family home built after 1920
• Have a home valued between $200,000-1 million ($1.5 million in some markets)
• Own a condo worth $200,000-750,000
• Live in Atlanta, GA; Austin, TX; Dallas-Fort Worth, TX; Denver, CO; Houston, TX; San Antonio, TX

Best for

Homeowners in Orchard’s service area who need extra money to put down on a new home before selling their old property.

Opendoor summary

Opendoor offers customers a hassle-free way to sell their homes for cash at a competitive price.

Sellers receive an initial offer within 24-48 hours and can choose a flexible closing date without worrying about getting their home market-ready. The iBuyer also pays closer to market value than other real estate investors. The company sells homes for an average of $26,100 more than it pays for them, based on an analysis of Bright MLS data.

Opendoor charges a 5% service fee (around the price of selling with a realtor) and has stricter purchase criteria than other cash buyers. Learn more in our full Opendoor review.

Pros and cons

Pros

✅Quick selling time frame

✅Flexible closing dates

✅Online selling process

✅No home showings

“Opendoor made it very easy to show my home, proceed through closing, and sell my home with minimal effort. They were extremely professional and I felt they were by my side every step of the way.” - Brady, reviews.io

Cons

❌Stricter selling criteria than cash buyers

❌Offers below market value

❌The final offer can change

❌5% service fee

“They gave me a range of what they expected to offer. There was a $40,000 difference between the bottom and top of the range. … A few days later, they gave me a final offer which was $300 above the bottom of the range and WELL below market value.” - Matt S., reviews.io

How it works

1. Enter your information on Opendoor to get a preliminary offer (typically within 24-28 hours)
2. Complete a video or live walkthrough with an Opendoor representative
3. Receive a final offer after the representative assesses your property’s value
4. Sign a purchase agreement and arrange a closing date

Eligibility

Your home may qualify to sell through Opendoor if it is:

• A single-family home, townhome, or condo built after 1930
• Valued between $100,000 and $600,000 (or up to $1.4 million in some markets)
• On a maximum lot of 1 acre (2 in some markets)
• Owner-occupied without serious issues

Best for

Homeowners who are willing to accept an offer below market value and want a quick sale while avoiding the hassle of the open market.

Offerpad summary

Offerpad gives sellers perks, like free local moves and a 3-day grace period after closing, in addition to a quick selling timeframe.

You can choose between accepting a cash offer from Offerpad or going to market with an agent, which could include a cash advance for home repairs. The iBuyer also boasts flexible closing dates ranging from 8-90 days.

Opting for Offerpad’s cash offer may come with high repair costs that cut into your final offer.

Pros and cons

Pros:

✅Free local moves

✅3-day grace period

✅Cash offer or traditional listing

✅Discounts for bundling services

“Selling my home with Offerpad was an exceptional experience, right from the beginning to the end!!! The initial professional I interacted with astounded me by thoroughly examining my property and subsequently extending an offer.” - Dean, Trustpilot

Cons:

❌5% service fee + 1% cancellation fee

❌Stricter purchase criteria than other companies

❌Inflated repair costs

❌Last-minute contract cancellations

“Offerpad came with a competitive offer, [then] waited [until] the 9th day in 10-day due diligence to provide lowball offer. We lost time…” - Carole, Trustpilot

How it works

1. Submit your information on Offerpad’s site to receive an offer
2. Choose to accept the offer or list through an agent
3. Complete a third-party home inspection
4. Receive an updated offer with a repair quote
5. Close on your home with a 3-day grace period

Eligibility

Homes qualify for Offerpad’s services if they have no significant title or structural issues and are:

• A single-family home, condo, or townhome
• In good condition and built after 1950
• No more than $1 million (pending on market)
• On a lot smaller than one acre

Best for

Someone who wants the flexibility of accepting a cash offer or listing through a real estate agent.

Knock summary

Knock’s bridge loan model lets customers borrow against their current home’s equity to make a non-contingent offer before selling.

Bridge loans cover your new home’s down payment, moving expenses, costs to prep your current home for sale, and ongoing mortgage payments until the house sells. You can also access up to an extra $35,000 to make home improvements before listing.

Knock builds a cash-offer safety net into your home’s listing worth around 80% of market value. You can accept the offer if you don’t sell in 6 months. Learn more in our full Knock review.

Pros and cons

Pros:

✅Buy a new home before you sell

✅Make top dollar on the open market

✅Finance home improvements

✅Cash-offer safety net available

“The bridge loan option with Knock allowed us … to get the house we wanted before selling our existing home. … ****** ******** with Knock was easily available with a knowledgeable answer and a friendly voice. A winning combo.” - Victoria H., Trustpilot

Cons:

❌Cash offers are only 80% of market value

❌Sellers need significant equity to qualify

❌Service fee is 2.25% of the sale price

❌Ongoing mortgage payments cut into profit

How it works

1. Submit your info for a bridge loan pre-approval (loan estimates typically take around 48 hours)
2. Agree to Knock’s terms to receive your interest-free bridge loan funding
3. Use your bridge loan to cover a down payment, repairs, and mortgage payments
4. Sell your old home within 6 months or choose to accept a cash offer after the 6-month listing period

Eligibility

You may be eligible for a Knock Bridge Loan if you:

• Have decent credit and equity in your current home
• Own a single-family home, townhome, or condo
• Built no unpermitted additions and the home is in good condition
• Want a maximum list price of $1.2 million ($2 million in higher-priced markets)

Manufactured/mobile homes, multi-family, or age-restricted properties do not qualify.

Best for

Someone with decent equity in their current property who wants to make a more attractive offer on a new home.

HomeLight summary

HomeLight lets customers choose between two selling options — listing with a realtor or a cash offer.

As a nationwide cash-buying network, HomeLight helps you compare offers from multiple cash buyers and realtors in your area. Cash offers close in as little as 10-30 days.

Working with HomeLight may not land you a cash deal, and many customers state they worked with a suggested agent rather than a cash buyer. Learn more in our full HomeLight review.

Pros and cons

Pros:

✅Compare cash buyers and realtors

✅Close in 10-30 days

✅No service fee

✅Intuitive seller dashboard

“I'm very satisfied with HomeLight services. They were flexible and enthusiastic about my needs. The realtor that I was connected to through this agency went above and beyond in facilitating the sale.” - Bri K., Sitejabber

Cons:

❌Matched agents charge full commission

❌Limited cash buyers available

❌Not guaranteed a quality agent

❌Overwhelming agent response

“Give them a call if you want countless unknown relators to call. … I was assured there would be A listing and A cash offer person calling - two different people. My phone has not stopped ringing in the past 6 business hours.” - Steve B., Google

How it works

1. Visit the Simple Sale page and fill out the online form

2. Connect with a member of HomeLight’s cash-buying network (or a realtor)
3. Receive a cash offer for your home
4. Close in as few as 10 days with a flexible moving date

Eligibility

All properties are eligible for HomeLight’s services.

Best for

Someone who wants to compare multiple offers and select the best agent or cash buyer for their needs.

How iBuyers work

The iBuying process varies from company to company, but most follow the same basic steps. Here’s how it works:

Step 1: Submit your home information via an online form. This typically involves filling out information about your address, home’s condition, square footage, lot size, and other details.

Step 2: Receive an initial cash offer from the iBuyer. After reviewing your application, the company will send you a cash offer for a portion of your home’s estimated value.

Step 3: Get a home inspection. Either a member of the iBuyer’s team or a third-party inspector will perform a home inspection to corroborate the info from your form and note any repairs that need to happen before selling.

Step 4: Receive an adjusted offer. The iBuyer will make a new offer after considering the repair costs provided by the inspector.

Step 5: Choose to accept the offer or walk away. Unless you’re working with a buy-now-sell-later program, you can take the iBuyer’s offer or simply walk away from the deal.

Pros and cons of using an iBuyer company

How to maximize your profit with iBuyers

1. Shop around and compare iBuyers

Before settling on one company, shop around to determine which iBuyer will offer the most for your home.

Be sure to consider your unique needs before accepting an offer. Ask yourself questions like:

• Do I want a cash offer for my home?
• Will a buy-before-you-sell program be the best fit for me?
• Would I prefer to try making more money on the open market?

2. Use the offer as leverage

After comparing cash offers, it may be possible to use those offers as leverage with another company.

Many iBuyers don’t leave room for negotiation when making an offer, but you may make more on a cash offer from a local cash buyer if you use the iBuyer quotes as a negotiation tool.

3. Time the market

Timing plays a critical role in any real estate transaction. If your area is currently in a buyer’s market (and you don’t need to sell right away), waiting for higher demand and lower inventory could work in your favor.

4. Minimize repair costs

Review the repair requests from iBuyers carefully. If any costs seem out of line, consult local contractors to determine whether repair costs are too high.

If your contractor finds inflated repair costs, you may want to look elsewhere.

5. Consult with a professional

Understanding your home’s value before accepting a deal with an iBuyer is critical. Contacting a trusted local real estate agent or home appraiser can help you decide if the cash offer is reasonable

Remember that the iBuyer’s offer will most likely be well below market value because they buy homes for resale.

6. Weigh iBuyers vs. cash buyers vs. traditional sale

Working with an iBuyer is convenient, but that convenience comes at a cost. Most iBuyers charge significant fees for their services, and you’ll often make less than what you would on the open market.

If you need to sell quickly, a cash buyer might be better. You’ll still receive below market value for your home sale, but many cash buyers charge no service fees or closing costs when buying your home.

If you want to make the most money on your home and don’t mind taking longer to sell, finding a quality real estate agent in your area will work best for you.

Services like Clever can connect you with quality realtors who have your best interest in mind when selling your home. Even better: Clever also negotiates on your behalf to score you a 1.5% listing fee — about half of what other agents charge.

Fill out this form to match with top agents near you!

The bottom line

iBuyers are legitimate companies that offer various services, from cash deals to buy-before-you-sell programs, but they aren’t the best fit for everyone.

If you need a quick sale or want to skip the hassle of listing and showing your home, an iBuyer may be a good fit. But it’s important to shop around before settling on one company.

We recommend consulting a local real estate pro for more specific advice about iBuyers and whether an iBuying service will work for you.

FAQ