The buyer generates revenue by purchasing and selling high volumes of real estate.īut while an iBuyer may be the most lucrative investor to sell to, not every homeowner is so fortunate.

The buyer purchases the homes near market value but then generates a profit by collecting real estate commissions-similar to the fees that a real estate agent would take. The buyer uses sophisticated computer algorithms to locate houses with profit potential. The iBuyer business model is fairly new, but it’s becoming extremely popular. So for a $300,000 home, it’s possible to secure between $240,000 and $255,000 (though it’s by no means guaranteed). iBuyersĪn iBuyer will usually give you the most money for your house, often in the 80-percent range or above. In order to estimate how much you might earn for your home, you have to know what kind of investor you’re working with. There are three main types of real estate investors: iBuyers, house flippers, and buy-and-hold investors. The desirability of your home (value, neighborhood, scarcity).How much you can expect to earn depends on: The industry average is about 65 percent. Home investors will typically give you between 50 and 85 percent of your home’s market value. Buying homes below market is what allows home investors to turn a profit.īut exactly how much value are you sacrificing when you sell to a real estate investor? It depends. There is one catch: When you sell to a real estate investor, you’ll typically earn less than the current market value of your home. You just accept the offer, receive your payment, and hand over the deed. There are no lenders to negotiate with, and you don’t have to jump through all of the legal hoops associated with traditional real estate transactions. You don’t need to list the house with a real estate agent and sacrifice 6 to 10 percent of your sale to commission fees. The nice thing about selling to a real estate investor is that the process is quick and you receive a lump sum payment. They may hold on to the house and use it as a passive income source (such as by renting it out to tenants), or they may resell it at a profit. But if you’re considering this route, you probably have one very important question: How much will an investor pay for my house? What Is a Real Estate Investor?Ī real estate investor is an entrepreneur who pays cash for houses. Selling your home to a real estate investor allows you to streamline the listing process and move out in less time.

House flipper buyers