iBuyer vs. Realtor: Which Way to Sell Fits Your Situation?
An iBuyer gives you a quick, firm cash offer, usually in days, and charges for that convenience through a service fee and a price set below what the open market might pay. A Realtor lists your home, markets it to many buyers and typically nets more money, but takes longer and often asks you to repair, clean and stage first. The right choice depends on what you need more: speed and certainty, or the highest possible price.
This guide compares the two on the things that decide your final check: fees, timing, repairs, risk and control. It also covers a third route that Metro Detroit homeowners often overlook, a local cash buyer. We are one of those, so we say where we fit and where a Realtor is the better call.
TL;DR
- Realtor: usually the highest sale price, but expect commission, repair and prep costs, showings and a timeline of weeks to months.
- iBuyer: fast and convenient, but the offer is typically below market value and fees can stack up after the offer is made.
- Local cash buyer: a direct as-is sale with no commissions, no repairs and a closing date you choose. Our offers come within 24 hours and we can close in as little as 7 days.
- If your home is in good shape and you have time, list with an agent. If it needs work, or time is short, compare a direct cash offer first.
Table of Contents
- How each option actually works
- What each path costs you
- Side-by-side comparison
- When a Realtor is the better choice
- When an iBuyer or cash buyer makes more sense
- If you are facing foreclosure, read this first
- Our perspective: speed has a price, and so does waiting
- How to compare your offers fairly
- Want a number to compare?
- FAQ
- Sources
How each option actually works
Selling with a Realtor
You sign a listing agreement, the agent prices the home, photographs it and puts it on the multiple listing service. Buyers tour it, make offers, negotiate, and then get financing, an appraisal and an inspection. Each step can slow or break the deal. Our guide to traditional home selling timeline stages walks through the process in order.
The upside is exposure. More buyers competing for your house gives you the best chance at full market price, especially when the home is move-in ready and in a strong location.
Selling to an iBuyer
An iBuyer is a company that uses an algorithm and a quick inspection to make an offer, then buys the home to renovate and resell. You submit your address, answer questions about condition, and receive an offer. If you accept, they inspect, may adjust the offer for repairs, and close on a timeline you can often pick within a range.
The model works best for homes that are fairly standard, in good condition, and in neighborhoods with lots of recent comparable sales. We explain the differences in more detail in why iBuyer offers differ from cash buyers.
Selling to a local cash buyer
A local cash buyer is typically an investor or small company that evaluates your house in person or from photos, makes an offer based on its condition and the neighborhood, and pays without a mortgage contingency. Because the buyer is not relying on a bank appraisal or a buyer’s loan approval, the process has fewer points of failure. Our own steps are laid out on how selling your house for cash works.
What each path costs you
Realtor commissions after the NAR settlement
Commissions are negotiable, and the rules changed in 2024. Since the NAR settlement, buyers and their agents must sign representation agreements before touring homes, and sellers are no longer required to cover the buyer agent’s fee. The Federal Reserve notes that many sellers still offer concessions to keep buyers interested.
In practice, the totals have barely moved. As of Q2 2025, the national average total commission was 5.44%, up from 5.32% a year earlier, with state averages ranging from 4.92% to 6.03%. The same report puts Michigan at the top of that range. Sellers are also paying buyer agents about 2.77% again after a dip in 2024, according to one brokerage’s data.
A simple illustration, using a hypothetical $200,000 house: at 5.44%, commission alone is $10,880. That is before closing costs, any repairs the buyer’s inspection requests, and the cost of carrying the house (mortgage, taxes, insurance, utilities) while it sits on the market. Your own numbers will differ, and you can negotiate the rate.
iBuyer fees and the offer gap
iBuyers usually charge a service fee, commonly described as a percentage of the sale price, and sometimes separate closing or title costs. The bigger factor is often the offer itself. Because the company plans to resell at a profit, the offer is generally set below what a well-marketed listing could achieve. After the inspection, repair deductions can lower the figure further.
Before you accept any iBuyer offer, ask for a written net sheet that shows the service fee, closing costs and repair credits, so you know what you would actually receive.
What a local cash buyer charges
With us there are no realtor fees or commissions, and we cover standard closing costs for sellers. We do not publish a price, because an offer depends on the home’s condition, location and the market. What we can say is that the offer is made within 24 hours, and the number you are offered is the number we work from, without a listing’s commission layered on top.
A cash buyer’s offer will generally be lower than a fully renovated, well-staged listing would sell for. That is how a direct purchase works for any buyer. The question is whether the gap is larger or smaller than what you would spend on commission, repairs, carrying costs and months of uncertainty.
Side-by-side comparison
| Factor | Realtor | iBuyer | Local cash buyer |
|---|---|---|---|
| Typical sale price | Highest potential, set by buyers | Below market, set by algorithm and inspection | Below a fully renovated listing, set by condition |
| Seller costs | Commission, closing, prep and repairs | Service fee, closing costs, repair deductions | No commissions; we cover standard closing costs |
| Speed | Weeks to months | Days to a few weeks | Offer in 24 hours; close in as little as 7 days with us |
| Repairs required | Often needed to attract buyers | Inspection may trigger deductions | Sold as-is, no repairs or cleaning |
| Deal certainty | Depends on buyer financing and inspection | Firm offer, but can be repriced | No financing contingency |
| Best for | Move-in ready homes, flexible timelines | Standard homes in busy markets | Homes needing work, urgent timelines |
When a Realtor is the better choice
Be honest with yourself about these situations. A Realtor is likely the right call when:
- Your home is in good condition and would show well with light cleaning and staging.
- You can wait several months without financial strain.
- Your neighborhood has strong buyer demand and recent comparable sales.
- Maximizing price matters more than convenience.
Timing also matters less than people think. NAR data suggests sellers prioritize marketing the home, pricing competitively and meeting a specific timeframe, and the best month to sell depends on local inventory and your own finances more than a national calendar.
If you want to keep the whole commission, you can also read our guide on how to sell your home without a real estate agent. It is more work, but it is an honest option for some owners.
When an iBuyer or cash buyer makes more sense
Speed and simplicity are worth real money in certain circumstances. Consider a direct sale when:
- The house needs repairs you cannot afford. Roofs, foundations, outdated systems and water damage can scare off financed buyers and trigger lender requirements. Our page on selling as-is and eliminating your repair burden explains how this works.
- You inherited a property. Estates often carry taxes, utilities and upkeep for a home no one wants to renovate. See why selling as-is saves estate costs and our inherited home selling options compared.
- You have a fixed deadline. A job move, a downsizing plan or a purchase contract on your next home may leave no room for a long listing. Read our timeline for selling a home before relocating and why cash offers suit quick timelines.
- You are behind on your mortgage. More on this below, because the stakes and the risks are higher.
If you are facing foreclosure, read this first
Financial distress is where good decisions matter most, and where bad actors appear. Two points.
First, know your timeline. In Michigan, homeowners facing foreclosure generally have a statutory redemption period, typically six months, and you have the right to sell the home during it and keep any equity above the amount owed, according to a Michigan county foreclosure guide. The same guide notes the period can be shortened if a lender proves in court that the property is abandoned, so keep the home maintained and occupied. A Realtor can sometimes still work within that window, but only if the home is ready to list. Confirm the exact dates for your case with your lender, a housing counselor or an attorney.
Second, protect yourself from scams. The Consumer Financial Protection Bureau warns that foreclosure rescue schemes often pressure owners to sign over a deed, sometimes under a rent-to-own pitch, after which they can lose ownership and still face eviction. The FTC says scammers ask for an upfront fee before delivering any help. Free help is available from HUD-approved housing counselors, and you can always call your lender directly.
A legitimate sale is a straightforward purchase agreement, you can have it reviewed by an attorney or title company before you sign, and you are never asked to pay a fee to get help.
Our perspective: speed has a price, and so does waiting
We have bought homes in Metro Detroit for over 16 years, and the same pattern repeats. Homeowners rarely ask us whether a cash sale beats a perfect listing. They ask whether it beats the listing they can actually run: the one with a leaking roof, a probate delay, a missed payment or a family that lives three states away.
We do not think a cash offer is right for every seller. If your house is in good shape and you can wait, an agent may net you more, and we will say so. Where we fit is the situation where the true cost of a listing is bigger than the commission: repairs you cannot fund, months of carrying costs, showings you cannot manage, and the risk that a buyer’s financing falls through at the last moment.
What we try to do differently from national chains is stay local and keep it plain. You get an offer within 24 hours, we buy the house as it is, with no repairs or cleaning, there are no commissions, and we cover standard closing costs. If you want to close in as little as seven days we can, and if you need more time, we can work around your move.
The most useful thing you can do is compare real numbers. Get a written offer from us, ask a local agent for a net sheet, and compare what lands in your account after costs and time.
— Real Estate Team
How to compare your offers fairly
An apples-to-apples comparison is the only way to decide well. Follow these steps.
- Estimate your home’s value from several angles. Online estimates can be off by a lot, especially for homes not currently listed: median error rates for off-market homes run roughly 7% to 8%, which on a $500,000 home can mean $35,000 or more. The same source suggests checking several tools, and if they differ by more than 10%, treat that as a sign the home has features or defects an algorithm cannot see.
- Ask an agent for a net sheet. It should list commission, closing costs, repairs and expected days on market.
- Add the carrying costs. Multiply your monthly mortgage, taxes, insurance and utilities by the months you expect to wait.
- Get written cash offers. Ask what is deducted, what is covered, and whether the number can change after an inspection.
- Compare net proceeds and the date you receive them. A slightly lower number that arrives in a week can beat a higher one that arrives in four months, or never arrives if the sale falls through.
- Read the contract. Have an attorney or title company review any agreement before you sign.
For the closing mechanics on each side, see our traditional vs. cash sale closing guide and the walkthrough of how an as-is home sale works.
Want a number to compare?
If you own a house in Metro Detroit and want a cash offer to put next to an agent’s net sheet, request your fair cash offer here. There is no pressure to accept, and you will hear back within 24 hours. You can also see why homeowners choose to sell fast in Detroit or start from our main page.
FAQ
Does an iBuyer pay more than a Realtor?
Usually not. A listing exposes your home to many buyers, which tends to produce the highest price, while an iBuyer must resell at a profit and prices its offer accordingly. The iBuyer’s advantage is speed and certainty, not price. Compare net proceeds after all fees and time, not just the headline offer.
Is a 3% commission normal for a Realtor?
Not as a total. The national average total commission was 5.44% in Q2 2025, and a seller’s agent received around 2.77%. Rates are negotiable, so ask each agent what they charge and what they include.
Can I sell a house that needs repairs with a Realtor?
Yes, but expect a lower price, buyers requesting credits, and some lenders refusing to finance a home in poor condition. Many owners fix the most visible issues first. If you cannot afford repairs, an as-is sale to a cash buyer avoids that step entirely.
What is the safest way to sell if I am behind on my mortgage?
Contact your lender and a HUD-approved housing counselor first, since that help is free. Never pay an upfront fee to anyone promising foreclosure relief, and never sign over your deed without legal review. If a sale is the right path, compare a listing and a cash offer against your redemption deadline.
Sources
- Agent Commissions Edge Higher in 2025, One Year After Landmark NAR Settlement (PR Newswire)
- Buyer brokers earning larger commissions post-NAR settlement (National Mortgage News)
- Commissions and Omissions: Trends in Real Estate Broker Compensation (Federal Reserve)
- 2025 Profile of Home Buyers and Sellers, highlights (NAR)
- Options in Foreclosure (Michigan county guide)
- How to spot and avoid foreclosure relief scams (CFPB)
- AI Home Valuation Tools: AVM Accuracy and Reviews