The Top 3 iBuyer Companies Ranked & Reviewed

Michelle Delgado

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Michelle Delgado

November 19th, 2021
Updated November 19th, 2021

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Top iBuyer companies | Pros & cons of selling to an iBuyer | Purchase criteria | iBuyers near me

iBuyer companies

The top three iBuyer companies are Opendoor, Offerpad, and Redfin Now. Opendoor, the largest iBuyer by purchase volume, is our number one overall pick because it has the best combination of value, flexibility, and accessibility.

🥇 Best overall: Opendoor
🥈 Most flexible: Offerpad
🥉 Highest fees: Redfin Now

Zillow used to have an iBuying division called Zillow Offers, but the company shut down their iBuying service in late 2021. Other companies, like Rocket Homes, have plans to start their own iBuying programs, but they have yet to launch.[1]

iBuyer companies generally pay less than you could expect to get selling your house on the open market — the tradeoff for a convenient, prediable home sale.

The top three iBuyers all charge a service fee that amounts to 5% or more of the final sale price. Additional closing costs (1-3%) and repair expenses (1-2%) are also deducted from the iBuyers' initial offer.

We recommend comparing offers from multiple iBuyers near you, then speaking with a local real estate agent who can evaluate your home and look at other recent sales in the neighborhood to establish a competitive listing price. This way, you can get advice from an expert and decide if selling to an iBuyer is the best choice for you.

🏠Sign up with Clever and get matched with top local agents for free!

Top 3 iBuyer companies in 2022

Opendoor

Opendoor

Full Review

Service Fee

5%

Closing Date Window

14-60 days

Average Rating

4.3 | 2346 reviews

✍ Editor's Take
Pros & Cons
Locations
Reviews
Contact

Opendoor is the best option for most home sellers who want to use an iBuyer because the service fee is capped at 5%, closing times are flexible, and the company is active in 45 markets across the country.

Request a free, no-obligation offer from Opendoor now!

Pros

  • 5% service fee is lower than competitors
  • Additional in-house services, including Opendoor Home Loans & OD Title
  • Highly rated in customers' online reviews

Cons

  • Offer prices may vary by market
  • Limited ability to negotiate
  • Buyers may find Opendoor's repairs insufficient

Opendoor is currently purchasing homes in 45 locations, including:

  • AZ: Phoenix, Tucson
  • CA: Los Angeles, Riverside, Sacramento, San Diego
  • TX: Austin, Dallas-Fort Worth, Houston, San Antonio
  • UT: Salt Lake City

As of November 11,2021, Opendoor's weighted average is 4.3 based on 2346 reviews.

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Offerpad

Offerpad

Full Review

Service Fee

5%

Closing Date Window

10-90 days

Average Rating

3.9 | 271 reviews

✍ Editor's Take
Pros & Cons
Locations
Reviews
Contact

Offerpad promises the certainty of a cash offer and a fast closing on a date you choose. However, the company charges a 1% cancellation fee and generally makes less competitive offers than Opendoor.

Pros

  • Generous closing window compared to competitors
  • Late checkout option gives sellers up to 3 days to move out after closing
  • Access additional services, such as free local moves within 50 miles


Cons

  • You'll have to sign a binding contract before knowing the final offer price
  • You might face a 1% cancellation fee
  • Offerpad reserves the right to back out at any time

Offerpad is currently purchasing homes in 22 locations, including:

  • AZ: Phoenix, Tucson
  • AL: Birmingham
  • FL: Jacksonville, Orlando, Tampa
  • NC: Charlotte (+ neighboring parts of SC), Raleigh
  • TX: Austin, Dallas-Fort Worth, Houston, San Antonio

As of November 16, 2021, Offerpad's average customer rating is 3.9 based on 271 reviews.

  • Website: www.offerpad.com
  • Phone: 844-388-4539
  • Email (Sellers): info@offerpad.com
  • Email (Buyers): buyers@offerpad.com
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RedfinNow

RedfinNow

Full Review

Service Fee

5-13%

Closing Date Window

10-30 days

Average Rating

4 | 4 reviews

✍ Editor's Take
Pros & Cons
Locations
Reviews
Contact

Compared to its competitors, RedfinNow handles a relatively small volume of iBuyer sales and has high service fees (up to 13%). However, RedfinNow shines in several niches, thanks to its willingness to accept older homes and its availability in a wide range of California cities.

Pros

  • Expanded presence in cities across California, including several not served by other iBuyers
  • Large and trusted corporate brand
  • Older homes (built after 1930) are eligible in select cities


Cons

  • Relatively expensive services fees (up to 13% of the offer price)
  • Relatively limited flexibility on closing window, compared to competitors

RedfinNow is currently purchasing homes in 31 locations, including

  • AZ: Phoenix
  • CA: Inland Empire, Los Angeles, Orange County, Palm Springs, Sacramento, San Diego, San Francisco
  • CO: Denver
  • TX: Austin, Dallas, Houston, San Antonio
  • WA: Seattle

As of November 16, 2021, RedfinNow has an average rating of 4 across 4.

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Our iBuyer ranking methodology

To rank the best iBuyer companies, the Clever Real Estate editorial team spent hundreds of hours researching each business. Next, we assigned each company a total score based on three categories: value, flexibility, and accessibility.

Each category is broken down into subcategories. For instance, when we talk about value, we look at factors like offer prices and service fees.

For example, Offerpad scored poorly in the value category because they generally make lower offers than Opendoor, but the company scored highly in the flexibility category because they allow for a closing time of up to 90 days.

Pros and cons of selling to an iBuyer

👍 Pros
  • You can close a deal fast — sometimes in as little as 10 days
  • You won’t have to spend time or money preparing, listing, and marketing your home
  • You’ll probably receive a competitive offer
  • All of the selling costs are deducted from your offer, so there are no out-of-pocket selling expenses
👎 Cons
  • You’ll have to pay steep service fees (think 5% or more, plus 1-3% closing costs and possibly 1-2% in deductions for repairs)
  • You probably won’t get the same personalized service you would from a traditional real estate agent
  • Your home might not qualify, due to strict selection criteria
  • You won't be able to capitalize on the potential upside of getting multiple offers on the open market

Which homes qualify for most iBuyers?

iBuyer companies try to earn a profit by reselling homes — so they’re picky about what homes qualify. In a nutshell, they want to acquire homes they believe they can sell quickly and for a good price.

We reviewed the terms of service for the biggest iBuyer companies and found that most share similar criteria:

🏠 Type of home
Single family residential homes, condos, and townhomes
🌲 Lot size
0.5 to 1.5 acres
💰 Valuation
$100,000 - $600,000

Most iBuyer companies also look for homes that are owner-occupied and in good condition.

For example, an iBuyer might be happy to repaint your home or complete minor repairs — but major water damage, a cracked foundation, or unpermitted additions might cause them to back out.

If you’re not sure whether your home will qualify, it never hurts to submit your information. In most cases, you’ll receive your cash offer (or rejection) within 24-48 hours.

Finally, keep in mind that these are general criteria and exceptions do exist. Practically every iBuyer company offers a disclaimer that their practices vary according to the specific market you’re in.

Not eligible for iBuyers?

Looking for a real estate agent but short on time? Clever can connect you with top-rated listing agents in your area within 24 hours.

Our network of agents work for pre-negotiated low rates: just $3,000 for any home under $350,000, or 1% for more expensive homes.

Submit the form below for a free, no-strings-attached phone consultation with one of our Licensed Concierges.

Which iBuyer companies are available near me?

iBuyer
States
Opendoor
AL, AZ, CA, CO, FL, GA, ID, IN, MN, MO, NV, NC, OH, OK, OR, SC, SD, TN, TX, UT, VA
Offerpad
AL, AZ, CO, FL, GA, IN, KS, MO, NV, NC, OH, SC, TN, TX
Redfin Now
AZ, CA, CO, GA, IL, MD, MA, MN, NV, NC, OR, TN, TX, VA, WA

So far, iBuyers are primarily available on the west coast and in the south — but they all have plans for expansion. For example, Opendoor has publicly announced that it plans to operate in 100 markets in the coming years.[2]

Home trade-in services

Home trade-in services, companies like Knock and Orchard, enable people to move into a new home before they sell their old one by making an upfront, all-cash offer. These companies are called "power buyers" in the real estate industry.

Unlike iBuyers, power buyers don't aim to buy houses — they simply help customers sell them on the open market after they move out.

However, aside from their core iBuying business, Opendoor has a home-trade in service for people who want to buy and sell, or for buyers who want to make competitive all-cash offers.

» MORE: Home Trade-in Programs: How to Buy a House Before You Sell Yours.

FAQs about iBuyer companies

What is the best iBuyer company?

We ranked Opendoor as the best iBuyer company because it:

  • Covers the most cities
  • Has the lowest fees
  • Has the best technology
  • Generally makes the most competitive offers

Offerpad, the runner up, generally pays less for houses, but they do offer unique perks like free moving and a 21-day late checkout option.

Read our full review of Opendoor to learn more.

Are iBuyer companies legitimate?

Yes, iBuyers are legitimate real estate companies that make cash offers on homes in select locations.

iBuyers price houses using a combination of proprietary algorithms and teams of real estate pricing experts.

Most iBuyers can provide sellers with an offer in less than 24 hours, and close in as little as 2 weeks. Learn more about the top iBuyer companies.

ARTICLE SOURCES
[2]

Opendoor. "Opendoor Investor Presentation." Updated September, 2020.

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