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An iBuyer is a company that uses algorithms and advanced technology to discover homeowners who are in the market to sell their homes. Eighty–seven percent of all home buyers start their search for a new home on the internet. The search is captured by iBuyers and used to discover if the home buyer is selling their current home.

The iBuyer company uses technology to estimate the value of the home and make an instant offer (the "i" in iBuyer stands for "instant"). iBuyers represent a shift in the way people are buying and selling homes. The iBuyers tout their processes offer a simpler, more convenient alternative to a traditional home sale.

The underlying idea is if a home buyer accepts the iBuyer's offer, the iBuyer takes on the burden of owning, marketing and reselling the home. The benefit is the certainty of an all–cash offer and quick closing.

iBuyers are often compared to home flippers, but there are differences:

  • Home flippers want to profit from buying low and selling high. They target distressed properties, make renovations and then sell at a significantly higher price.
  • iBuyers focus on homes in good condition. They aim to make an offer in line with the property's fair market value and charge a service fee similar to the real estate commission paid in a traditional sale.

The first iBuyer was launched in 2013 and since then a number of competitors have entered the real estate business. iBuying is not offered nationwide. The market conditions of the property location drive the iBuyers to metropolitan areas of the country where a purchase and fast resale of the property can take place due to buyer demand.

 

 
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