comparison · 8 min read
iBuyer vs. cash buyer: which gives a better offer?
Opendoor and Offerpad use a tight pricing algorithm. Independent cash buyers price each property by hand. Here's how the offers actually compare.
iBuyers price algorithmically
Opendoor, Offerpad, and similar instant-offer companies use AVM models on public data (Zillow estimate, comps, condition assumed average) plus a few photos. Fast offers, narrow accuracy. The model penalizes anything outside the median property.
Cash buyers price manually
Independent cash buyers look at the property individually — usually with a walkthrough. They can see condition, situation, and submarket nuance the algorithm can't. Slower, more accurate.
iBuyers charge service fees
Often 5-8% of sale price. Cash buyers don't. Net-to-seller comparison should always include fees.
Best fit for each
iBuyer wins on: pristine, recent-build, average-condition property in an average-priced submarket. Cash buyer wins on: anything outside that — older, damaged, occupied, unusual situation, non-median submarket.
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