Instant Offers (iBuyer programs) Do they really Work For a Seller?

This topic has generated a lot of buzz in today’s real estate world — and for good reason. These programs promise convenience and speed, but it’s important to know exactly what you’re signing up for before making a move.

Below, I’ve outlined how Instant Offers work, what the true costs can look like, and a few key takeaways every homeowner should know. As always, if you have any questions, I’m just a call or message away. Stay safe and have a wonderful week!

These programs promise convenience and speed, but it’s important to know exactly what you’re signing up for before making a move.

Below, I’ve outlined how Instant Offers work, what the true costs can look like, and a few key takeaways every homeowner should know. As always, if you have any questions, I’m just a call or message away. Stay safe and have a wonderful week!

 

💡 How Does It Really Work?

Many sellers believe iBuyers will purchase their homes sight unseen and deposit cash into their accounts the next day. While there are companies that buy homes this way, most modern iBuyers like Opendoor, Offerpad, Zillow Offers, and RedfinNow operate a little differently.

Here’s the typical process:

Step 1: Request an Offer

Submit your property address and a few details online. The company reviews your home data and prepares an initial offer.

Step 2: Receive & Review the Offer

Expect a response within 24–72 hours — not truly “instant,” but still much faster than the traditional selling route. Keep in mind: these offers are usually below market value, since the company will handle the resale and any future renovations.

Step 3: Property Inspection

An inspector visits your home to verify condition and identify repairs. Based on their findings, the company may adjust its offer.

Step 4: Repair Decisions

Depending on the company, you can either:

• Credit the iBuyer for repairs (deducting from your offer), or
• Complete the repairs yourself before closing.

Step 5: Close the Deal

Once everything checks out, you’ll move toward closing — typically within a few weeks. You’ll pay closing costs (1–3%) plus a “service fee,” which can range anywhere from 6–13% of the sale price.

 

💰 What Are the Fees?

Here’s a quick comparison of common iBuyer service fees:

Company	Service Fee Range
Opendoor	6–13% of offer price
Offerpad	6–10% of offer price
Zillow Offers	7% or higher
RedfinNow	Around 7% of offer price

So you might be asking — “Why pay as much (or more) than a traditional Realtor’s commission?”

It comes down to your goals:

• Speed & simplicity → iBuyer might make sense.
• Maximizing profit → a traditional sale often wins out.
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📊 What the Data Shows

A MarketWatch study of multiple iBuyer transactions found that sellers who used iBuyers netted about 11% less than those who sold on the open market. That’s potentially tens of thousands of dollars left behind.

Before accepting any instant offer, it’s worth running the numbers or speaking with a trusted real estate professional to see what truly benefits you most.

 

⚖️ Instant Offer Pros & Cons

✅ Pros

• Fast closing (you pick the date!)
• Low risk of deal falling through
• No open houses or showings
• Skip repairs or upgrades
• No formal appraisal required
• No Realtor commission

⚠️ Cons

• Typically lower offers than the open market
• Service fees of 5–10%
• Potentially tens of thousands lost in equity

One Las Vegas agent shared that his own iBuyer offer came in $150,000 below market value. That’s a hefty price for convenience — though for some sellers, it’s still worth it.

 

🏠 So… Should You Get an Instant Offer?

If you need to move fast, avoid repairs, or simply don’t want the hassle of showings, an iBuyer can be a lifesaver.

But in today’s market — where inventory is low and demand is high — sellers hold the power. Working with an experienced Realtor could help you capture your home’s full value, often far exceeding what an iBuyer might pay.

As one industry expert put it:

“With today’s hot market, a traditional sale is almost always worth the effort. But for unique or hard-to-value properties, an iBuyer might still make sense.”

 

⚠️ Important Update for Sellers

One of the latest changes in a major iBuyer program could have a serious impact on your bottom line if you’re not aware of it. It’s worth a look:
🔗 EXP Realty & Opendoor Alliance Update

 

Information provided as a courtesy by the Premier Houses Team of Triwood Realty — committed to helping sellers make informed, confident decisions

 

Leon D. Harper – C: 253-973-7732 – E:info@premierhouses.com