The concept of iBuying was pioneered by Softbank-backed startup Opendoor in 2014. A rival startup called Offerpad launched soon after. The concept caught on enough that other real estate companies launched their own iBuyer programs, most notably Zillow, but Redfin and Keller Williams have also launched iBuyer programs on a smaller scale.
Because they need a lot of data to generate accurate pricing, iBuyers look to buy houses that fit within what they call a “buy box.” These are generally moderately priced suburban homes, ranging from $150,000 to $500,000, depending on the iBuyer and the city.
Not every iBuyer is in every city, and cities with irregular or expensive housing like New York City have not attracted iBuyers because homes there are harder to price via an algorithm. But large markets with a lot of moderately priced suburban single-family homes are bread and butter for iBuyers. Here’s a map where each iBuyer currently operates.