What’s an iBuyer? 

I have a house to sell. Moreover, I want to sell it fast. And, I don’t want any hassles going through the process.

If these statements sound like you, then you may want to consider an iBuyer for the sale of your home. So what’s the difference between iBuyers and traditional real estate agents? There are a few notable distinctions. Read ahead to get the skinny on which might be best for your situation.

What Does the “i” in iBuyer Mean?

As much as you may want to think that small “i” stands for you, it actually stands for “instant” as in instant sales. Real estate companies that advertise themselves as iBuyers use modern technology to calculate home values and make quick cash offers. These typically large real estate companies can handle entire sales transactions online and can generally close deals in two weeks or less.

Unlike house flippers, iBuyers tend to avoid distressed properties, focusing instead on houses in reasonably good condition. As a result, they tend to make offers closer–but not as much as–their fair market value. They satisfy the “I want to sell fast” desire for homeowners who are in a rush to get out of their homeownership obligations.

Are iBuyers a Hassle-Free Choice?

Even in a seller’s market, a sale through a traditional real estate agency is bound to take longer. Think about it. You have to clean and repair your home and property in anticipation of multiple showings. You may need to have professional photos or videos done to display your house in its best light. There may be some haggling on the price with no guarantee that the buyer financing won’t fall through. And you won’t necessarily get to close on your personal timeline.

A sale through an iBuyer streamlines the process. An iBuyer charges a service fee that is often similar to standard real estate commission rates, though depending on the condition of the house, the fee could be higher. In exchange, sellers don’t have to bother with cleanup and repairs and a variety of other fees. They don’t have to show their home multiple times. And they can close fast. That’s the hassle-free part.

So Why Bother With a Traditional Real Estate Agent?

If you want to get the best possible price for the sale of your house and are willing and able to wait out what will likely be a longer process, then selling through a traditional agency is the way to go.

But that’s not all. While traditional agencies will consider representing a broader range of homes for sale, the houses major iBuyers purchase must meet very specific purchase criteria. They typically buy owner-occupied houses built after 1930 and on lots of 1.5 acres or less. And they focus on houses valued in the $100,000 to $600,000 range and in need of only minor repairs.

Lastly, iBuyer real estate companies are still a fairly new concept, and quite simply, they haven’t yet extended into every city and town across the country. The good news is that top iBuyers like Opendoor and Offerpad are active in over 40 U.S. cities and their business models continue to expand.