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The iBuyer Process

Updated: Mar 27

The Steps in the iBuyer Process

iBuyers—from Zillow, to Opendoor, to Keller Offers Powered by Offerpad—are becoming a bigger and bigger factor in the home selling landscape. Despite their rise in prominence, how they actually operate is a mystery to most sellers.

Read What are iBuyers

Here, we present the general steps that iBuyers and sellers go through when performing a standard iBuyer transaction. Note that some steps may vary from company to company, but the overall flow will be the same.

Let’s dive into a typical iBuyer transaction, in which an iBuyer purchases directly from a seller. It is important to note that there are other iBuyer models as well, including programs that help a consumer both sell their house and purchase a new one.

Step 1: The Seller Decides to Request an Offer

First, a potential seller is made aware of the option of working with an iBuyer. This option is attractive to sellers who need to sell both quickly and with convenience. They are considering their net proceeds and focused on moving into the next stage in their life. Typically, sellers will choose to seek offers from iBuyers based on marketing they’ve received and who is most active in their area. They go directly to the iBuyer’s website and provide the information requested to receive their offer.

At Keller Offers, we recommend getting a real estate agent involved in order to have a fiduciary on your side. Keller Offers was built to give consumers the representation they deserve.  Our goal is to always have you represented, so there are no surprises!

Step 2: The iBuyer Evaluates the House

Each iBuyer has its own algorithm for evaluating a house; included factors are condition of the home, ease of resale, and status of the surrounding market. The iBuyer will have a set of criteria that make for an optimal property for acquisition, based on lot size and age of the home.

Read How do iBuyers judge the condition of a home?

Step 3: An Offer Is Made

If a house fits the criteria closely enough, and the iBuyer is confident in a resale, an offer is made. The iBuyer will then share what their service fee is and will seek a contractual agreement in order to move on to inspections and repair estimates. The majority of iBuyers will seek both a service fee to cover holding costs and a repair allowance to fix any issues with the house.

Read How do iBuyers profit?

Step 4: Repairs Are Negotiated

Once the iBuyer has inspected the house, a final offer is made that includes the allowance the iBuyer is seeking for repairs. For some iBuyers, the negotiation is done in stages, whereas other iBuyers lump all these aspects together. It’s important that the seller dives in and understands all aspects of the offer, and knows where they can counter. Not all iBuyers offer negotiation opportunities. Keller Offers powered by Offerpad makes it easy to for an agent to counter the initial offer and the Repair Ask on behalf of their client.

Read iBuyers vs Flippers

Step 5: The Seller Determines Next Steps!

Once the seller has all the information, they can choose how to progress. Most iBuyers are fairly flexible on closing dates, giving the seller the power to make their plans. If all of the details are coming together for the seller, they can take the offer, get a quick close, and move on. If not, they always have the option to work with their agent and go on the market. iBuyers all have different policies when it comes to contract termination—this is why working with a Keller Offers certified agent is key!

The iBuyer process is designed to put the power in the hands of the seller—if they are educated enough on the process, they take advantage of that power. Working with an agent, such as a Certified Agent through Keller Offers, can give a seller the advantage they need to move quickly through the process and onto their next home.

Read what criteria do iBuyers use?

Written by Brian Gubernick on March 10, 2020


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