A local cash buyer and an iBuyer both make offers without a traditional listing, but they work differently. A local cash buyer purchases any condition directly, with no fees and a flexible close. An iBuyer uses an automated offer, charges a service fee, and usually buys only newer, move-in-ready homes in select markets.
| Factor | Local cash buyer | iBuyer |
|---|---|---|
| Home condition accepted | Any - as-is | Mostly newer, move-in-ready |
| Service fee | None | Often 5% or more |
| Repair deductions | None | Common after inspection |
| Market availability | Local and flexible | Select markets only |
| Offer reliability | Direct and firm | Can be revised after inspection |
| Closing date | You choose | Set windows |
How each one makes an offer
A local cash buyer evaluates your property directly and makes an offer based on its real condition. An iBuyer uses an algorithm to price the home, then sends an inspector who can adjust the number afterward.
Fees and deductions
A local cash buyer charges no fees, so the offer is what you keep at closing. An iBuyer charges a service fee and often deducts repair costs after inspection, which lowers your net proceeds.
Which homes qualify
iBuyers favor newer, move-in-ready homes in specific markets and price ranges. A local cash buyer purchases distressed, inherited, and major-repair homes that an iBuyer will not touch.
Which route fits your home
If your home is older or needs work, a local cash buyer is the practical choice. For the wider set of options, see our cash home buyers vs traditional real estate comparison and our guide to selling your house fast in California.
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Complete Guide to Selling Your House Fast in California: Your Options, Process, and What to Expect in 2026Read the full guide for more in-depth information on this topic.
Quick Answers
What is the difference between a cash buyer and an iBuyer?
A local cash buyer purchases any condition directly with no fees. An iBuyer uses an automated offer, charges a service fee, and buys mostly newer homes in select markets.
Do iBuyers charge fees?
Yes. iBuyers typically charge a service fee, often around 5% or more, and may deduct repair costs after an inspection.
Can I sell a fixer-upper to an iBuyer?
Usually not. iBuyers favor newer, move-in-ready homes. A local cash buyer purchases distressed and inherited homes as-is.
Which is faster?
Both are faster than a listing. A local cash buyer offers a flexible, firm close; an iBuyer uses set windows and may revise the offer after inspection.
Written by
YK Kuliev
Founder & Lead Buyer
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