Most people searching for a fast cash sale encounter two distinct categories of buyer: iBuyers and We Buy Houses companies. Both pay cash and skip the traditional listing process. But they price homes differently, serve different sellers, and the net you walk away with can vary significantly once you account for fees. Here is exactly how they compare.
What is an iBuyer?
An iBuyer is a technology company that uses automated valuation models to make data-driven offers on homes. The appeal is a price closer to market value without the months a listing takes. The limit is eligibility.
To receive an iBuyer offer, your home typically needs to:
- Be located in a major metro market where the iBuyer operates
- Fall within a target price range
- Be in good to excellent condition with no major structural or system issues
If your home meets those criteria, an iBuyer will often offer more than a traditional We Buy Houses company on a per-price-point basis. The complication is the service fee, which functions like a commission the buyer charges the seller rather than a traditional agent commission.
What is a We Buy Houses company?
A We Buy Houses company is a direct cash buyer - typically a real estate investor or investment firm - that purchases homes directly from sellers without any service fee. They buy in any condition, cover closing costs, and are not restricted to move-in-ready homes.
The trade-off is price. Because a direct buyer takes on the risk of an as-is purchase and must budget for repairs and holding costs, the offer is lower than what an iBuyer would quote on a comparable turnkey property. That discount covers real costs, not profit padding.
Side-by-side comparison
| Factor | iBuyer | We Buy Houses Company |
|---|---|---|
| Offer price | Closer to market value on qualifying homes | Below market, reflects as-is condition |
| Service fee | Typically 5 to 8% of sale price | None |
| Closing costs | Varies, often seller-paid | Typically covered by buyer |
| Repairs required | Post-inspection deductions common | None, strictly as-is |
| Home condition | Good condition only | Any condition |
| Geographic reach | Select major metros | Broader, including smaller markets |
| Close timeline | 14 to 30 days typical | As fast as 7 days |
| Certainty | Conditional on inspection results | Very high once offer is accepted |
What you actually net
The headline price is not what lands in your bank account. Consider a home worth 260,000 dollars in good condition.
An iBuyer might offer 250,000 dollars, then deduct a 6.5 percent service fee (16,250 dollars) and a 4,000 dollar repair credit after inspection. Net to you: roughly 229,750 dollars.
A We Buy Houses company might offer 225,000 dollars on the same home, cover 3,500 dollars in closing costs, and charge no service fee. Net to you: roughly 225,000 dollars.
The actual gap in net proceeds is about 4,750 dollars, not 25,000 dollars. And for homes needing significant work, iBuyers often decline altogether.
For a broader look at how these numbers compare against a traditional listing, see the full cash offer vs. traditional sale breakdown.
When an iBuyer makes sense
Choose an iBuyer if:
- Your home is in excellent condition with no deferred maintenance
- You are in a major metro market the iBuyer actively serves
- The service fee does not erase a price advantage you actually have
- You prefer a fully digital, low-contact experience
When a We Buy Houses company makes sense
A direct cash home buyer is the better path when:
- Your home needs repairs you cannot or do not want to fund before selling
- You are outside a major metro where iBuyers do not operate
- Speed matters and you need to close in 7 days or less
- You want zero service fees and a certain close regardless of the headline price
- You are dealing with foreclosure, probate, divorce, or another time-sensitive situation
How to verify the offer is fair
The test for both types of buyer is the same: can they explain every number? A reputable We Buy Houses company will show you the after-repair value, the estimated repair budget, holding costs, and the resulting offer. An iBuyer should show you the comparable sales driving their valuation.
If either company cannot or will not walk you through the math, that is a warning sign. Legitimate buyers are transparent because transparency is how trust is built.
The bottom line
iBuyers and We Buy Houses companies both move faster than the traditional market, but they serve different sellers in different situations. Get offers from both if your home qualifies, then compare the net - not the headline - and factor in your timeline and condition.
Request a no-obligation cash offer from Homewise to see the numbers for your home before you decide.
