Advertiser Disclosure

advertising disclaimer
Skip to main content
selling a home

What Is an iBuyer? iBuying Explained

iBuying, an instant method of buying or selling a home, is revolutionizing the real estate market.

[Updated: Feb 04, 2021 ] Dec 16, 2019 by Liz Brumer
Get our 43-Page Guide to Real Estate Investing Today!

Real estate has long been the go-to investment for those looking to build long-term wealth for generations. Let us help you navigate this asset class by signing up for our comprehensive real estate investing guide.

*By submitting your email you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.


Click to enlarge

Business model Designed for home sellers who... How it works
Cash offer • need to sell quickly • do not want to make any repairs on the home • need cash fast The iBuyer company buys the home in cash at a slight discount from fair market value. Most cash offer iBuying programs will not give the seller top dollar for their home.
Trade in • want to sell their home and buy a new one simultaneously The seller identifies a new home they want to purchase. The iBuyer makes a cash offer that allows the seller to buy the new home. The seller moves into the new home while the old home is listed for sale. Depending on the program, the seller will:

• continue making payments on the old mortgage until the old home is sold where they settle any outstanding costs including financing for the new home from the sale proceeds

• lease the new home until the old home sells, or if it doesn't sell for top dollar, sell the home to the iBuyer at a predetermined set price

• get a new mortgage through the iBuying company using the proceeds from the old home sale.

iBuying Map

Click to enlarge

Image source: Remine iBuyer Map