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Adobe Stock November 10, 2022 Taylor Freitas is a freelance writer and has contributed to publications including Bankrate, LA Weekly, CNET and ZDNet. Troy Segal is Bankrate's Senior Homeownership Editor, focusing on everything from upkeep and maintenance to building equity and enhancing value. Bankrate logo The Bankrate promise
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Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Traditionally, selling a home has been somewhat of a lengthy process. From selecting a real estate agent to hosting showings to navigating the closing, it can take months to finalize a home sale. But for people who don’t want to wait that long to sell their house, a new and faster alternative has emerged: . Instead of dealing with the back-and-forth of a traditional home sale, owners who work with iBuyers will receive an instant (well, almost) offer on their home, usually within 24 to 48 hours. If you’re weighing up the pros and cons of iBuyers vs. Realtors, there are a few things to consider – including the speed of sale, costs, and more. Here’s what you should know. Selling to an iBuyer
The “i” in iBuyer stands for two things: internet and instant. Most iBuyers are online companies that make quick on homes, fix them up, and re-sell them for a profit. Many iBuyers will have your offer ready within a day or two, and the entire sale can be completed . Selling to an iBuyer is simple and straightforward, although the exact process will vary depending on which iBuying company you choose. Generally, you’ll get started by visiting the iBuyer’s website and providing some basic details about your property (sometimes, all the iBuyer needs is your address). Then, based on your home’s location and local real estate market data, the iBuyer will present you with an offer. After extending this initial offer, some iBuying companies will require an in-person of your home to get a better idea of its condition. If they find any issues, they may modify the original bid. Once you have the final offer, you can accept and choose your , or you can decline it. Working with an iBuyer can significantly shorten the home sale process, but it does have its downsides. Most notably, the offers from these companies are usually lower than what you’d get from a traditional listing because iBuyers are focused on generating the highest possible profit from fixing and . And although you won’t need to pay any real estate commissions to an iBuyer, these companies charge a fee for their services (typically of your home’s sale price). Since 2017, four companies (Offerpad, Zillow, Opendoor and Redfin) have accounted for of iBuyer sales. Zillow shut down its iBuying business in late 2021 and Redfin shuttered but the other two continue to dominate the field. Their activity reached a record level in 2021, according to real estate data analyst CoreLogic. Still, they’re a relatively small share of total real estate transactions, about 1 percent nationally — and they still tend to be mainly in the South and Southwest. Selling through a real estate agent
If you aren’t in a rush to sell your home, then you might take the more traditional path of working with a real estate agent or – which do. Although you aren’t required to hire one, a can be a tremendous asset during the sale process. A seller’s agent – also known as a listing agent – oversees many aspects of the home-selling process, including: Advising on how to price your property Marketing your listing Setting up viewings Negotiating with potential buyers and their agents For their services, real estate agents typically receive between of a home’s sale price in commission, which is slightly less than the average iBuyer service fee. One of the best ways to is by asking friends and family for referrals. Alternatively, you can research online to find the best agents in your area. Once you’ve identified a few candidates, speak with them individually about their experience, working style, references, and rates, and then make a decision. Because there are more steps involved, selling through a real estate agent takes longer than selling to an iBuyer. You might get (and accept) an offer fairly quickly — in August 2022, properties typically remained the t’s common for a traditional real estate transaction to take between (and sometimes longer) from listing to closing. On the plus side, however, a good agent will provide invaluable insight into the market and selling process — which can help you sell your home for a higher price. Comparing Realtors and iBuyers pros and cons
When it comes to iBuyers vs real estate agents, the pros and cons are relatively straightforward. Here’s how these two home-selling options compare. Speed
From a seller’s perspective, speed is the most compelling reason to work with an iBuyer over a real estate agent. iBuying eliminates many parts of the traditional home sale process, including finding an agent, pricing your home, , and negotiating with buyers. With an iBuyer, the sale can be completed in weeks, whereas a traditional sale may take months. Cost
There are costs associated with both iBuyers and real estate agents, but iBuyers’ fees tend to be slightly higher. The exact percentages vary, but on average, iBuyers’ service fees are between 6 and 8 percent of your home’s sale price, while real estate commissions are typically around 5 to 6 percent. Also, offers from iBuyers are generally lower than what you’d get from a traditional sale, meaning that you’ll probably net less money from selling to an iBuyer. At the same time, though, homes sold to iBuyers aren’t shown to the public, which means that you’ll save money on , such as cleaning, painting and staging. And iBuyers generally buy homes as-is, so they won’t demand costly repairs or replacements, as human buyers might. Flexibility
Selling to an iBuyer is simple: within a couple of days, you’ll receive a no-commitment cash offer that you can either accept or decline (and that’s it: iBuyers don’t do negotiations). In contrast, selling through a real estate agent gives you more flexibility because it allows you to work one-on-one with a real estate professional of your choice and entertain offers from multiple buyers. Then, after you’ve received the offers, you can to find a final price that works for both of you. Bottom line iBuyers vs Realtors
When comparing iBuyers vs Realtors, there’s no clear-cut winner. The right choice will depend on how fast you want to sell your home, how much money you’re hoping to get from the sale, and how much work effort you want to put into the whole process. Still on the fence? You can pursue them both, up to a point. In many cases, it’s free to request an offer from an iBuyer, and once you have it, there’s no obligation to accept. At the same time, you can find a local real estate agent and ask for a free to get an idea of . Just don’t sign any sort of contract with the agent if you are going to seriously market your home to iBuyers — you don’t want to pay commissions and fees to them both. SHARE: Taylor Freitas is a freelance writer and has contributed to publications including Bankrate, LA Weekly, CNET and ZDNet. Troy Segal is Bankrate's Senior Homeownership Editor, focusing on everything from upkeep and maintenance to building equity and enhancing value. Related Articles