Direct Cash Buyer vs iBuyer
iBuyers such as Opendoor and Offerpad and direct cash buyers like SilverCrest Estates both let you skip listing, showings and a buyer's mortgage. They're built for different houses, though. iBuyers generally target newer, well-kept homes they can resell quickly, and charge a service fee plus repair deductions. Direct buyers purchase homes in any condition and price the condition in up front. Here's how to tell which fits your home.
- Even-handed comparison
- No fees or commission
- Free written offer
An iBuyer, short for instant buyer, uses software to estimate what your home is worth from public records and recent sales. If your home fits its criteria, you'll get a preliminary offer, followed by an assessment of the home's condition. The final number usually reflects a service fee and any repairs the assessment finds. Opendoor publishes how its fees work on its website, and it's worth reading before you request an offer.
That model works well for a specific kind of house: relatively new, in good repair, in a market and price range the company buys in. For those homes, an iBuyer's offer can be competitive and the process is smooth. For homes with older roofs, foundation movement, fire or water damage, hoarding, tenants, or title complications, iBuyers often decline or deduct heavily.
A direct cash buyer starts from a different place. We expect homes to need work. A person looks at your property, estimates the after-repair value and the cost of repairs, and makes a single written offer that already reflects condition. There's no separate service fee and no repair deduction after the fact, and we cover standard closing costs on our side.
The fair way to compare is net proceeds. Take the iBuyer's offer, subtract its service fee, any repair deductions and your normal seller closing costs. Compare that to the direct buyer's offer minus anything that would come out of your proceeds. For a newer home in great shape the iBuyer may come out ahead; for a home needing work, the direct offer often does. Our calculator lets you run both.
Whichever you choose, ask for everything in writing: the final price after all fees, who pays which closing costs, how long the inspection or assessment period is, and what could change the number before closing.
How the two compare
| Factor | SilverCrest Estates | Typical iBuyer |
|---|---|---|
| Homes they buy | Any condition: dated, damaged, inherited, tenant-occupied, vacant | Typically newer homes in good condition within set price ranges and markets |
| How the price is set | A person underwrites your home using local sales and repair estimates | Algorithmic estimate, then adjusted after an in-person or video assessment |
| Service fee | None | A published service fee, commonly several percent of the price |
| Repair deductions | None after the offer; condition is priced in up front | Repair costs found during the assessment are usually deducted |
| Seller closing costs | We cover standard closing costs on our side | Seller typically still pays normal seller closing costs |
| Closing date | As little as 21 days, or a date you choose | Flexible window you choose, often a few weeks out |
Competitor details are general descriptions based on each company's public materials. Terms change, so confirm every point in writing with any buyer.
Compare your own numbers
Net proceeds calculator: listing vs. cash
Estimate what comes off your sale price, then compare a traditional listing against a direct cash sale. Every assumption below is editable.
Commonly 5–6% total and negotiable. Set to 0 if selling without an agent.
Seller's share commonly 0.5–1%. Split varies by local custom.
National-average estimate. County and city charges stack — check your county recorder for the real rate.
Credits negotiated after inspection. Entirely deal-specific — set to 0 if none.
Leave blank to see an illustrative example at 90% of sale price. That percentage is a placeholder, not a quote.
Placeholder based on condition. Replace with a contractor quote.
Prep + time on market + 30–45 days for the buyer's loan.
Mortgage interest, taxes, insurance, utilities, HOA.
Estimates only. Defaults are national-average ranges from Bankrate and the CFPB. Your title company's written estimate is the authoritative number.
Selling with an agent
Sale price
$400,000
Agent commission
5.5% of sale price
− $22,000
Title & escrow
0.75% of sale price
− $3,000
Transfer & recording tax
0.4% of sale price
− $1,600
Buyer concessions
1% of sale price
− $4,000
Attorney, recording & HOA
− $1,200
Total closing costs
8.0% of sale price
$31,800
Repairs
Before listing or credited after inspection
− $8,000
Carrying costs while it sells
4 months × $1,800
− $7,200
Estimated net proceeds
$353,000
After closing costs, repairs and carrying costs; before your mortgage payoff and prorated property taxes.
Selling direct to SilverCrest for cash
Cash offer
Illustrative placeholder — enter your real quote above
$360,000
Agent commission
No agent, no commission
$0
Title, escrow & settlement
We cover standard closing costs on our side
$0
Repairs and concessions
Bought exactly as it stands today
$0
Carrying costs
About a week until closing
− $450
Transfer & recording tax
Settled from proceeds where local custom assigns it to the seller
− $1,600
Estimated net proceeds
$357,950
Difference in net proceeds
+ $4,950
On these assumptions the cash route nets more. It also removes the repairs, showings and the risk of a buyer's loan falling through — but it depends entirely on the offer amount, so use a real quote.
Get a real cash offer to compare against →Get a written offer to compare
Free and non-binding. Put it next to any other offer and keep whichever leaves you more.
Free and non-binding. We buy directly with our own funds — no listing, no showings, no repairs.
Frequently asked questions
What is an iBuyer?
An iBuyer is a company, such as Opendoor or Offerpad, that uses automated valuation to make fast cash offers on homes that meet its criteria, then resells them. They typically charge a service fee and deduct repair costs found during an assessment.
Will an iBuyer buy a house that needs major repairs?
Often not. iBuyers generally focus on newer homes in good condition in certain markets and price ranges. Homes with significant damage, older systems or title problems are more likely to be declined or receive large repair deductions.
Do direct cash buyers charge a service fee?
It depends on the buyer. SilverCrest Estates charges no fee or commission and covers standard closing costs on our side. Always ask any buyer for the final amount you'll receive after all fees and costs.
Which pays more, an iBuyer or a cash buyer?
For a newer home in excellent condition, an iBuyer may net more. For homes that need work, are occupied, or have complications, a direct buyer often nets more because there are no post-assessment deductions. Compare written offers by net proceeds.
Can I get offers from both?
Yes. Offers are free and non-binding until you sign. Getting one of each is the best way to see which works better for your home.
Sources
Cost ranges and industry figures on this page come from the public sources below. Where a precise figure varies by state, county or transaction, we say so rather than quoting a single number.
- 1.Opendoor — Opendoor's service charge and fees
- 2.Offerpad — How Offerpad works
- 3.Federal Trade Commission — Consumer advice on real estate and home-sale offers