Definition
iBuyer
Also called: instant buyer
An iBuyer is a technology company that makes near-instant, algorithm-priced cash offers on homes — Opendoor is the best-known example. iBuyers target relatively uniform, good-condition homes and charge a service fee, typically 5% or more.
iBuyers price with automated valuation models, which is why they operate in markets and price bands where homes are similar enough for algorithms to value confidently. Their offers are usually closer to market value than a flipper's, offset by service fees and repair deductions assessed after inspection.
The catch is the buy box: iBuyers generally decline older homes, homes needing meaningful repairs, unusual properties, and complicated situations like probate or tenants in place — exactly the properties that dominate the as-is market. For those, the buyer pool is local investors, and the way to protect price is making several of them compete.
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