What Is an iBuyer? Pros, Cons & Alternatives

Considering an instant cash offer from an iBuyer? Learn how iBuyers work, the real costs, and how a flat fee MLS listing with Brokerless compares.

🏷️ What Is an iBuyer?

An iBuyer is a company that uses data and algorithms to make near-instant cash offers on homes. Sellers get speed and convenience, but typically accept a lower net after service fees and repair deductions.

⚙️ How iBuyers Work (Step by Step)

  1. Request an offer: Submit your address and basic details.
  2. Preliminary price: Algorithm estimates value and sends a quick offer range.
  3. Home review: Virtual or in-person assessment adjusts the offer.
  4. Deductions: Service fee + repair credits reduce your net.
  5. Fast closing: Close in as little as 7–14 days (varies by company/market).

Note: iBuyers typically operate in select metro areas and can pause buying during market shifts.

✅ Pros vs ❗ Cons of iBuyers

Pros

  • Fast, certain closing (fewer showings, less hassle)
  • Flexible timelines and cash certainty
  • Limited prep work compared to traditional listing

Cons

  • Lower net proceeds due to service fees + repair credits
  • Offers often below open-market potential
  • Availability limited to certain markets/property types

📊 iBuyer vs FSBO vs Flat Fee MLS

  • iBuyer: Fast and simple, but you pay for convenience via fees and discounted offers.
  • Traditional FSBO (no MLS): Limited exposure, fewer qualified buyers.
  • Flat Fee MLS (Brokerless): Full MLS exposure to buyers and agents for one flat fee — you control price, showings, and negotiations.

See exactly how our process works in How It Works and what it really costs in Cost to List on MLS.

🧭 When an iBuyer Might Make Sense

  • Need to relocate quickly and value certainty over top dollar
  • Home fits typical iBuyer buy-box (price range, age, condition, location)
  • Prefer to avoid showings/repairs and accept a lower net for speed

Otherwise, a flat fee MLS listing often maximizes exposure and net proceeds.

🏡 Why Sellers Choose Brokerless

  • Nationwide MLS exposure: Reach buyers’ agents + major sites like Realtor.com & Zillow
  • One flat fee: No hidden closing fees or listing commission
  • You stay in control: Pricing, showings, and negotiations

Explore nationwide coverage or jump to pricing.

📌 FAQ

Q: What fees do iBuyers charge?
Most iBuyers charge a service fee and subtract repair credits; your net is usually lower than an open-market sale.

Q: How fast can iBuyers close?
Often 7–14 days, depending on company, due diligence, and local requirements.

Q: Do iBuyers operate everywhere?
No. Availability is limited to select metro areas. Brokerless offers nationwide coverage.

Q: Can I list on MLS and still get investor offers?
Yes. MLS exposure can attract investors and retail buyers, helping you compare offers and pick the best outcome.

📋 View Flat Fee MLS Plans
Prefer a walkthrough? See How It Works.