Harney: Is iBuyer home-sale practice for you?

If those sellers were presented with a relatively fair price and quick offer for their homes — even if they net less money — they’d be interested. Unlike the fix-and-flip target market, these owners’ homes are in good shape and sellers could easily take the traditional route — hiring a realty agent.

Enter the “iBuyer.” A handful of internet companies, armed with proprietary valuation data and algorithms, have jumped into the cash-offer arena. At least two tell me they plan to expand to most major real estate markets nationwide. With no obligation, owners can enter basic information online about their homes and receive a tentative offer within 24 to 48 hours. Following an inspection, they may get a binding, all-cash offer. The iBuyer later resells the house.

The pioneer in the space, San Francisco-based Opendoor, has purchased around 15,000 houses and is buying about 1,000 a month, co-founder JD Ross told me last week. Sellers run the gamut: Downsizing seniors, move-up families and folks who don’t enjoy keeping their homes “show ready” for extended periods. The company currently operates in Phoenix, Las Vegas, Orlando, Dallas-Fort Worth, Atlanta, San Antonio, Raleigh-Durham and Charlotte, N.C., but plans nationwide expansion. Its basic deal for sellers: a “fair” price for the home, plus a “service fee” around 7 percent that can go higher depending on needed property repairs and market conditions. Sellers are under no obligation to accept the offer and can use it to comparison-shop deals from traditional realty agents.

Opendoor’s chief rival so far is OfferPad, which is active in most of the same markets plus Tampa, Salt Lake City and Los Angeles. According to the company, it’s currently doing around $125 million in buy-sell transactions per month. Its basic fee to sellers is 6 percent. Additional charges vary with the condition of the home, location and market trends. The average fee is 7 percent, according to Brian Bair, co-CEO.

Relative newcomers include Zillow — best known for its Zestimate valuation tool and advertising services it sells to realty agents — which is testing its “Instant Offers” program in three markets (Orlando, Las Vegas and Phoenix). Its model brings in institutional investors to bid on houses or allows Zillow to purchase directly for subsequent resale. Home sellers receive a comparative market analysis prepared by participating local Zillow “premier” agents. Sellers can accept the all-cash offer, list with an agent or shop for a better deal. Jeremy Wacksman, chief marketing officer for Zillow, told me total fees to sellers range from 8 percent to 15 percent, depending on expected repairs and updates and local market dynamics. Offers may be at a “slight discount” to market value, he added.

Redfin, a national realty brokerage, has begun offering its “Redfin Now” direct-buyer program in San Diego and California’s Inland Empire. Fees average 7 to 9 percent, according to Quinn Hawkins, Redfin new ventures director.

What to make of the iBuyer concept? Wherever you are, some version is probably coming your way. The concept offers you a trade-off: You’re likely to net less on your sale but save significant time and hassle. You may not like the offer prices, fees or the repairs you’re asked to pay for, but you’re under no obligation until you commit to the deal. Meanwhile, you’ve got an innovative all-cash alternative to the traditional way of selling your home.