iBuyer vs local cash buyer: how they differ
Both skip the lender and can close quickly, but they price, inspect and charge in different ways. Here's a plain comparison.
No obligation. No pressure. Takes about 2 minutes.
The short answer
An iBuyer is a company that makes offers online using pricing models, often charges a service fee, and may ask for a repair credit after its inspection. A local cash buyer is usually an investor or small company that walks through the house, prices the repairs into the offer and buys as-is. iBuyers tend to focus on newer homes in good shape; local buyers are more likely to take on homes that need work, at a price that reflects it.
Step by step
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1
How the offer is made
An iBuyer starts with an online form and a preliminary offer from its model, then confirms it after an inspection. A local buyer usually visits first, looks at recent sales and the repairs, and then makes an offer.
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2
Fees and repair credits
iBuyer offers can come with a service fee and a repair deduction after inspection, so the final number may be lower than the first one. Local buyers usually build repairs into the offer up front. Ask either one for the net amount in writing.
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3
Which homes they buy
iBuyers tend to set limits on price range, age and condition. Local buyers are more likely to consider older homes, big repairs, tenants or estates.
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4
Local knowledge
A local buyer may know block-by-block differences a model can miss, like flood exposure or how a certain street sells. A model can be quick and consistent where there's plenty of recent sales data.
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5
Compare the net, not the headline
Take each offer, subtract any fees, repair credits and closing costs you'd pay, and compare what's left. Then compare both with what listing could net.
Cash offer vs listing
Example: a $250,000 home
| Offer | $205,000 |
|---|---|
| Repairs | $0 |
| Commissions | $0 |
| Closing costs | $0 |
| You walk away with | $205,000 |
| In 7 to 14 days | |
| Sale price | $250,000 |
|---|---|
| Repairs | about $8,000 |
| Commissions | about $13,800 |
| Closing and holding | about $6,000 |
| You walk away with | about $222,200 |
| In 60 to 90 days | |
Example only. Your numbers depend on your home and market.
Whichever buyers you talk to, we show the cash offer next to what listing could net, so the comparison uses the same yardstick.
Frequently asked questions
Which one pays more?
It depends on the home. Compare the net each would leave you after fees, repair credits and closing costs, and compare both with what listing could net.
Can an iBuyer's offer change after I accept?
It can, if the inspection turns up repairs and they ask for a credit. Ask any buyer, iBuyer or local, whether the offer can change after inspection and on what terms.
Is a local cash buyer always faster?
Not always. Both can close quickly when the title is clear. Ask each for a closing date in writing.
Who are you?
We are real estate investors based in Baltimore, helping homeowners since 2016. We buy houses directly for cash. We are not a licensed real estate brokerage and do not list homes ourselves; if listing could get you more, we show you the math so you can choose.