Here’s the truth behind iBuyers and their automated valuation models.


An iBuyer is a real estate investor that often buys the home quickly using cash. They use an AVM, or automated valuation model, popularized in the form of Zillow’s Zestimate. Typically, an iBuyer will purchase the home without ever having seen it.

Having someone offer cash for your house sight unseen seems easy, but watch out for scams. There’s a lot of fraud that floats around in the real estate industry, like wire transfer fraud. If you do decide that an iBuyer is the best route for you, make sure you go with a reputable one and close only at a local escrow or title company; never, ever, ever wire your money out somewhere.

“The average consumer that takes an offer from these iBuyers takes 13% to 15% less than the value of their home.”

The reality of the iBuyer program is that it’s not as sexy as it sounds. According to Forbes, the average consumer that takes an offer from these iBuyers takes 13% to 15% less than the value of their home. That’s massive! These iBuyers will also order an inspection, point out all of the issues they want fixed, and if you refuse, they’ll take even more off of their offer. It’s not a great deal. It’s important to be educated about what really occurs in these transactions.

If 13% to 15% less than your home’s value sounds appealing, go for an iBuyer’s offer. Then again, you could go with a trusted team of professionals to represent you. Don’t leave money on the table! Reach out to us by phone or email anytime if you have further questions about iBuyers or are interested in buying or selling soon.