A whole industry now competes to buy your home without a listing: iBuyers with algorithmic offers, local investors with bandit signs, and cash-offer platforms in between. They all sell the same product — speed and certainty — and they all charge for it in the same currency: your net proceeds. The decision is rational once you price the convenience.
Know Your Buyer Types
| Buyer | Typical Offer vs. Market | Fees | Speed | Best For |
|---|---|---|---|---|
| iBuyer (e.g., Opendoor) | Near market for typical homes | 5–7% service fee + repair deductions | Close in 2–6 weeks, flexible date | Standard suburban homes in covered metros |
| Local investor / 'we buy houses' | 60–80% of after-repair value | None visible (it's in the price) | 1–3 weeks, any condition | Distressed homes, inherited estates, fire/major damage |
| Cash-offer platform / power buyer | Market-ish with financing convert | 1–3% program fees | 2–4 weeks | Sellers who need cash-buyer certainty but market pricing |
| Traditional listing | Market value (the benchmark) | ~8–10% all-in selling costs | 2–4 months typical end to end | Anyone optimizing for net proceeds |
How an iBuyer Offer Actually Nets Out
iBuyer headline offers often look close to market value; the gap appears in the deductions. Example on a home worth $400,000: offer $392,000, minus 6% service fee ($23,520), minus repair assessment ($9,000) = $359,480 net before your closing costs. A well-executed listing at $400,000 with 9% all-in costs nets about $364,000 — and often more, because competitive listings frequently sell above value while iBuyer repair deductions are theirs to assess. The convenience premium here is real but knowable: get both numbers.
Always run the comparison: request the iBuyer offer (free, no obligation), get an agent's CMA and net sheet the same week, and compare nets side by side. Only then do you know what the speed is costing — it might be $5,000 (often worth it) or $45,000 (rarely worth it).
When Taking Less Genuinely Makes Sense
- Job relocation on a clock — double housing payments erode a 'better' sale price fast
- Inherited property in another state, especially with deferred maintenance
- Divorce or estate settlement where certainty and a fixed date defuse conflict
- Homes in poor condition that would need financed-buyer repairs you can't fund
- Avoiding foreclosure — a fast sale that clears the mortgage protects your credit and remaining equity
- Landlords exiting a problem property without touching up tenant damage
Guarding Against the Predatory End
- Never sign a purchase agreement the same day someone knocks on your door — real buyers survive a 48-hour think
- Watch for option-contract games: some operators tie up your home cheaply and shop the contract to other investors (wholesaling); ask directly if they're the actual buyer with proof of funds
- Verify proof of funds and a real earnest money deposit through a legitimate title company or attorney
- Beware inspection re-trades: a 'firm cash offer' that drops 15% after their walkthrough was never firm — build a walk-away number in advance
- Elderly homeowners are the #1 target for lowball door-knockers; if this is a parent's home, get an independent CMA before anything is signed
The distress discount compounds: sellers who wait until a deadline is two weeks away can't run comparisons, can't negotiate, and take whatever certainty is offered. If a forced sale might be in your future — probate, relocation, arrears — start pricing your options months early, while you still have leverage.
Speed is a product with a price tag. Get the instant offer AND the CMA, compare net to net, and pay for convenience only when the situation genuinely demands it.