Instant buyer (or iBuyer) is a real estate transaction model wherein companies purchase residential properties directly from private sellers, to eventually re-sell them.
[1][2] The term ‘instant’ refers to the fact that this type of business aims to provide a faster cash offer on a property than traditional real estate brokers.
[8] iBuyer companies use computer-generated analysis of market data, information supplied by sellers, and in some cases input from local real estate agents, to make instant cash offers on residential properties.
[4][10] Businesses operating under the iBuyer transaction model make their profit on the fees incurred on the seller, which are typically marginally higher (1-4%) than those charged by traditional real estate companies.
[12] For a seller, the fees are paid in exchange for a much faster property-selling process than with a traditional real estate model and for avoiding the need to make repairs and improvements to the property prior to selling.