Each company has it’s own methodology, but the basic premise is the same. A seller or seller’s agent completes an online questionnaire about features and condition of the property, and some may request photos.
Next, the iBuyer uses the collected information to determine if your home fits their investment model. They usually look for a single-family home they can “flip,” and that is moderately price. Usually, the property does not require major renovations to relist for sale.
iBuyer’s use an algorithm to determine their purchase price and will email the seller an offer within a few days. The offer is usually contingent upon an in-person visit and inspections. Look for the company’s service fee, it is typically between 7% to12% of the purchase price.
Once a seller accepts the offer and its service fee, the company comes to the home to complete an in-person visit. The trained representative usually will ask for a price reduction to cover any items they found deficient.
After the iBuyer purchases the property, updates and repairs are made as quickly as possible and home is placed on the open market for sale.