How it started
The iBuyer model took off in 2014 when Opendoor began making online cash offers on homes, then reselling them. Offerpad followed a year later. The pitch was simple: skip the showings, repairs and uncertainty, and sell on your schedule.
The big names arrive, and leave
Between 2017 and 2018, Redfin and Zillow launched their own home-buying programs, and instant offers became something most sellers had heard of. Buying and reselling thousands of homes turned out to be risky, though. Zillow shut down its program in 2021 after struggling to price homes accurately, and Redfin closed its program in 2022.
Where things stand today
Opendoor and Offerpad are still buying homes, but higher interest rates and slower home sales have put real pressure on the model. At the same time, cash offer programs run by real estate brokerages have grown. Instead of one company making a single offer, a licensed agent gathers offers from investor buyers and represents the seller.
What sellers should take from this
- Cash offers are here to stay. Speed and certainty matter to a lot of sellers.
- The pricing is built for the buyer’s profit. The companies that paid too much went out of business, which is why cash offers come in at wholesale prices.
- Having someone on your side matters. An agent who represents you can compare investor offers with what the open market would pay.
ExpressOffer was built on that last point. Tell us where your home is, in any state, and a licensed professional in that market will show you both paths.