Hidden Costs of iBuying

Think of them as digital house flippers who scour mountains of data for typically off-market homes.

iBuying Explained
Known as iBuyers, these platforms buy houses for cash online. If the algorithms align well, homeowners who've submitted an online form will receive instant offers from interested iBuyers. The entire process usually takes place with no person-to-person contact. After buying the house sight-unseen (except for photos), iBuyers quickly resell, usually to other investors.

Transaction Fees
While iBuying may sound convenient, it has financial downsides. Industry experts say transaction fees can be significantly higher than in traditional home sales. Expect fee rates of around 7% of the home price, but be prepared for fee rates as high as 13%. Additionally, iBuyers most often make offers below market value.

Trust an Expert
You may think iBuyers can save you time and money. But an experienced real estate professional will work to get the best offer for your property and will be there to help find your next home.