Cash Buyer, iBuyer or Agent: Which One Fits Your House

Three different businesses, three different economics. Picking wrong costs either money or months.

The iBuyer catch worth knowing

An iBuyer's headline offer is close to market, which is why the model is attractive. The service fee and the post-inspection repair deduction are where the difference shows up, and the deduction arrives after you have mentally sold the house. iBuyers also buy a narrow band of property: newer, standard, in good condition, in specific metros. If your house is old, unusual or needs work, you will simply not get an offer.

The cash buyer catch worth knowing

Some "we buy houses" operations are wholesalers. They put your house under contract and then look for an actual buyer to assign it to. That is legal in most states and it is not automatically bad, but it means the contract can be re-traded or fall apart, which defeats the point of choosing certainty. Ask two questions: are you buying this yourself or assigning it, and can you show me proof of funds. Both answers should come immediately.

What each one is actually optimising for

An agent is paid a percentage of the sale price, so their incentive is a higher price, and they will happily spend three months getting it. That is aligned with you when you have three months and misaligned when you do not.

An iBuyer is running a volume business on a thin margin, which is why the fee schedule and the repair deduction are non-negotiable and why they only buy property their model understands. Anything unusual is priced by refusing to price it.

A cash buyer is buying an asset to improve and resell, so their incentive is a lower price and a clean, certain close. That is misaligned with you on price and perfectly aligned on speed and certainty. Knowing which of those three you are dealing with tells you where to push.

What to ask before you accept anything

• What exactly comes out of my proceeds, itemised, and can I see it in writing?
• What happens if you find something after we agree? Can the price change?
• Who actually closes: you, or somebody you assign this contract to?
• What is the date, and what would move it?

A decision rule

• Good condition, no deadline, can wait 60 to 90 days: list it with an agent. You will net more.
• Good condition but you need certainty and a date: compare an iBuyer offer against a cash offer and read the fee schedule carefully.
• Needs work, tenanted, inherited, or the deadline is somebody else's: cash. The other two options are not really open.
• Unsure: get all three. An agent's opinion of value is free, an iBuyer offer is free, a cash offer is free. A morning of work is the cheapest information you will ever buy about your largest asset.