Selling to an iBuyer—an instant-offer platform that buys your house directly—can close in days instead of weeks. But that speed carries a price tag. Understanding the fee structure and net proceeds helps you weigh convenience against cash.
How iBuyers Price Your Home
Instant-offer platforms use automated valuation models and local comps to generate an offer, typically within 48 hours. Most offers land at 95–98% of estimated market value before any deductions. The platform then subtracts a service fee—usually 5–6%—plus repair and holding costs. If the algorithm flags a roof, HVAC, or deferred maintenance, expect another 2–6% in itemized deductions. All in, net proceeds often run 8–12% below what a traditional listing might bring.
The Real Cost of Convenience
Consider a home valued at $400,000. An iBuyer might offer $390,000 (97.5% of value). After a 5.5% service fee ($21,450) and $8,000 in repair deductions, net proceeds drop to $360,550—a 9.9% haircut. A traditional listing with a 6% commission costs $24,000, netting $376,000 if the home sells at full price. That's $15,450 more, but it assumes a smooth sale at asking with minimal concessions. These figures are illustrative; rates and products are subject to change and this is not a commitment to lend.
When an Instant Offer Makes Sense
Speed and certainty matter in specific situations. If you're relocating for work, inheriting a distant property, or facing foreclosure, closing in seven days can outweigh the fee gap. iBuyers also eliminate showings, open houses, and repair negotiations—valuable if the property needs work or you lack bandwidth. Sellers who prize predictability over maximum net sometimes choose the known outcome.
When a Traditional Listing Wins
If your home is move-in ready, priced competitively, and in a balanced or hot market, a conventional listing usually nets more. Buyers pay retail; you control timing and negotiate terms. In markets where homes move in under 30 days, the extra weeks rarely justify a five-figure discount. Homes with unique features—acreage, custom build, waterfront—also perform better on the open market, where motivated buyers compete.
The Alliance Take
Instant offers are a tool, not a silver bullet. Run the numbers on both paths: calculate net proceeds after all fees, compare timelines, and assess your tolerance for uncertainty. If an iBuyer quote lands and you're curious what a traditional sale might bring, a broker market analysis costs nothing and takes one appointment. Knowledge removes guesswork. When you're ready to explore either route, start a conversation and we'll walk the math with you.