Will a Fix & Flip iBuyer pay close to fair market value?
No. Typically an iBuyer whose intention is to purchase the property, does a complete rehab and resell (Fix & Flip) will use a valuation model of 70 to 80% of After Repair Value (ARV) to base their offer price. Keep in mind that generally this type of iBuyer is looking for major renovation projects. Mere cosmetic improvements (paint & carpet) will not be attractive purchases for this style iBuyer.
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Will a Buy & Hold iBuyer offer close to list price?
YES. Typically, Buy & Hold iBuyers will offer 90 to 95% of fair market value. This is generally speaking as each iBuyer will have different investment goals. Offer prices may vary and will also depend on the degree of cosmetic updating (i.e., paint ...
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