Real Estate Investors vs. iBuyers in Portland, OR

Have you heard of the new real estate technology trend referred to as “iBuying”?

Companies like Zillow, Opendoor, and even Redfin have launched new services in the real estate investment space, using technology to make “instant” offers on your home.

There’s a lot of hype surrounding this new wave of online real estate investment services, which have been dubbed “iBuyers.” Taken at face value, it sounds interesting. But if you’re a Portland homeowner looking to sell, do your due diligence. Make sure you understand all the fine print before considering this route.

What is an iBuyer

An iBuyer is the catchall term used for online real estate investors. Using an automated valuation model (AVM) and other tech, these companies are focused on making cash offers quickly.

This tech-oriented concept relies on home sellers…

  1. Feeling comfortable with selling their home online to a large company
  2. Trusting that the company is presenting a fair offer

These transactions may even occur without any representative ever coming to look at the house.

iBuyers in Portland

iBuyer companies have slowly been expanding and testing services in cities throughout the US, including Portland, for a few years.

The most well-known companies in this space include Opendoor, Offerpad, Redfin Now, and most recently, Zillow Instant Offers. Others have started in select cities with plans to expand over time, like Opendoor and Offerpad.

Each of these companies approaches the iBuyer concept a bit differently. For example, Offerpad, Opendoor, and Redfin Now give instant offers but charge a 7-10% transaction fee, plus closing costs. Others require in-depth inspections and may request certain repairs on the home before they’ll buy it.

Comparing iBuyers vs. Real Estate Investors

Columbia Redevelopment (Local Real Estate Investor)
Fees
None
Closing Costs
None
Earnest Money Deposit from Buyer
$10,000
Closing Time
You pick! We can close in 2-3 days if necessary.
Showings
Just 1. No need to tidy up ahead of time.
Repairs
None
Inspection
No
Offer Negotiation
Yes
Offer Price
Competitive with local market.
Opendoor
Fees
6-14%
Closing Costs
N/A
Earnest Money Deposit from Buyer
No
Closing Time
10-60 days, you pick.
Showings
No
Repairs
Repair costs deducted from sale price.
Inspection
Yes
Offer Negotiation
No
Offer Price
Typically lower than what you’ll get from independent cash buyers.
Offerpad
Fees
6-10%
Closing Costs
1-3%
Earnest Money Deposit from Buyer
No
Closing Time
Varies by city, 8 day minimum.
Showings
No
Repairs
Repair costs deducted from sale price.
Inspection
Yes
Offer Negotiation
No
Offer Price
Typically lower than what you’ll get from independent cash buyers.
Zillow Instant Offers
Fees
7%
Closing Costs
1%
Earnest Money Deposit from Buyer
No
Closing Time
7-60 days, you pick.
Showings
Yes. A Redfin Now representative will come to look at your house.
Repairs
Repair costs deducted from sale price.
Inspection
Yes. All utilities must be on during inspection.
Offer Negotiation
No
Offer Price
Typically lower than what you’ll get from independent cash buyers.

Is selling your house to an iBuyer worth it?

Beyond the factors compared above, each iBuyer has other fine print details that may affect the process — from specific guidelines on the type of homes they’ll buy to how they calculate the offer.

Most services will offer online and telephone support. However, it’s up to you to do your own research and ask lots of questions to ensure you fully understand what you’re getting into.

If selling quickly for cash is your goal, working with a local real estate investor is the simple and tried-and-true path.

{

Greg & Laura’s work is absolutely breathtaking!! They put their heart and soul into their business and it really shows.

— Bella Richardson

computer and cell icon

Step 1: Get in Touch with Us

Call us or fill out an online form. We’ll discuss your property, why you want to sell, and answer any questions you have about our process. We’ll also set up a time to visit your home.

house and search icon

Step 2: We Will Visit Your Home

Greg or another member of our team will meet with you at the property. We’ll do a walkthrough of the home to get an idea of its potential. Questions? We’re happy to keep chatting about the process and clear up any concerns.

24 hour clock icon

Step 3: Receive Your Cash Offer

Within 24 hours of the visit, we’ll send you our cash offer. There’s no obligation to accept, but if you do, we’ll draft sales documents for your review. Once the paperwork is completed, we’ll deposit earnest money with Fidelity National Title Co in your account.

hand shake icon

Step 4: Choose Your Closing Date

Only one step left — choosing the date you want to close. We can close in as little as 2-3 days. When closing day arrives, the title company will transfer the sales proceeds to your account. There are never any closing fees, hidden costs, or agent commissions!

Thinking about selling your home?

We buy houses in any condition. As-is. All-cash. No fees.

 

Call or text us at (503) 200-8730 or contact us online.