Companies that buy houses for cash
If you’re thinking about selling your home, today’s seller’s market means you’re certainly not alone. But you don’t necessarily have to go to the trouble of finding an individual or family to buy it. Instead, you can consider selling directly to a company that pays in full up front — an all-cash deal.
Benefits of using home buying companies
There are various nuances in the way companies that buy homes for cash go, but they all generally share the same simple promise: You don’t have to wait for a buyer to secure financing. The business model offers many advantages for sellers:
- No waiting time: The process is quick – with some companies you can simply enter your address online and receive an instant quote within minutes. If you’re on a tight schedule, need to relocate ASAP, or need the money fast, that kind of speed can be a huge benefit. It basically eliminates the work of preparing lists, hosting open houses, and waiting for offers.
- No delicate price or deadline negotiations: “You also know how much you’re going to sell for and when you’re going to sell,” says Jennifer Dohm, vice president of brand communications at Offerpad, which buys homes for cash and gives sellers up to 90 days to close. “This empowers people looking to buy another home with the knowledge of what to work with for their next listing or life choices with a solid timeline of their choosing.”
- No real estate commissions: In traditional real estate transactions, sellers foot the bill for their agents and a buyer’s agent, who typically deducts 6 percent from the final sale price. Most cash offers do not include a broker’s commission. However, other fees may apply, so it’s important to read the fine print.
- No need to pay for labor before listing: Many sellers invest extra money in their home before putting it up for sale in hopes of fetching a higher price. This can be small repairs, major upgrades or home staging to make the property look picture perfect. If you’re selling your home to a cash-paying company, you don’t have to. “With a cash deal, there’s no cleaning, updating, or repairing required — no showings at all,” says Dohm.
- Don’t worry about the deal falling through: If you are selling to an individual, there are many scenarios where the sale may not actually take place. They might decide to back out after a home inspection uncovers a problem, or maybe a lender won’t approve their loan. If you get an offer from a company that pays cash, you can be pretty sure the deal will go through.
What types of companies buy homes for cash?
There are a few different types of companies that typically do cash offers on homes:
|company type||what they offer|
|Fix and flip||Home renovation companies want to buy properties in poor condition, repair them and sell them for a profit. Often these companies advertise that they are buying houses “as is”. If your property is in serious disrepair this could be an attractive option.|
|Buy and keep||On the other hand, buy-and-hold companies focus on keeping the home and converting it into a rental property. Instead of making an immediate one-off profit from the sale, the home becomes a steady stream of rental income.|
|trade-in||These companies are designed to help you buy your new home before you actually sell the house you live in.|
|ibuyer||The “i” in iBuyer stands for Instant. You probably type your address into a search bar, and the company’s algorithm generates a listing for your home in minutes. It’s designed to feel as simple as traditional ecommerce giants like Amazon.|
Companies that buy houses for cash
Traditional cash purchase companies
We buy ugly houses
As the name suggests, this company will happily buy your home, even if it doesn’t look ready for listing. “Ugly” isn’t just about looks, either. The company buys real estate with high-yield financing that doesn’t work for homeowners; homes with bad memories due to divorce or death; and a number of features that may make living there less than desirable for the current owner.
HomeVestors operates more than 1,100 franchises across the country. The company has bought a total of more than 125,000 apartments since it was founded in 1996.
We buy houses
This firm has more than 200 independent real estate investment offices in more than 30 states. Instead of working purely online, after entering your address, a local representative will personally come to your home to estimate the value and make a cash offer.
This regional company buys an average of 25 homes each month for cash in Pennsylvania, Maryland, Northern Virginia and Washington, DC
However, HomeGo is buying a lot of homes for cash — one every 20 minutes, according to its website. When you really need cash fast, the company offers a valuable benefit: closes in as little as seven days.
i buy houses
I Buy Houses is a network of individuals and businesses looking to buy homes for cash. The company acts as an intermediary, connecting homeowners looking to sell with interested members who may make an offer to buy.
Another network of individuals and investors – but with Sundae, you list your home on the company’s network and they conduct a personal visit. Four days after completing a home inspection, you’ll see multiple cash offers from multiple buyers for you to choose from.
iBuyers and trade-in companies
Opendoor aims to buy homes with valuations between $100,000 and $600,000. The company also operates primarily in large metropolitan areas, so it’s not a good option for homeowners in rural areas.
HomeLight’s Simple Sale offer values your home based on data from your neighborhood. They can be paid in as little as 10 days, and you have up to 30 days from closing to moving out.
You may already be using Redfin to compare prices or view listings, but the real estate agent also operates a service that makes cash offers on homes. However, be aware that RedfinNow charges service fees, which can range from 5 percent to 13 percent of your home’s value.
Offerpad’s express quote service will give you a move out quote within 24 hours and up to 90 days. If you qualify for the company’s Flex service, you can test the open market with a cash offer as a backup. Dohm adds that the company also includes a free move within 50 miles of your old home.
Orchard doesn’t actually buy your house for cash per se. It gives you cash — up to 90 percent of the value of your current home — to buy your next one. Then it takes care of refreshing your old home and listing it after finding a new place to call home. It’s all designed to avoid paying off two mortgages at the same time or trying to buy a home while selling your old one. It is only available in select metro areas including Atlanta, Austin, Charlotte, Denver, Phoenix and Seattle.
Similarly, Knock is another company that allows you to buy a new home and then sell your old one. However, it is not actually paid for in cash; The company guarantees you a new loan. The service — known as Knock Home Swap — is available in 16 states.
Flyhomes is another company that helps customers buy a new home before they sell the house they currently live in, and like Orchard and Knock, it’s not really a cash deal either. The company has a mortgage loan so you have a short term loan – plus the option of a long term loan for your new mortgage once your old home is sold. The company also only operates in select markets, including the San Francisco Bay Area, Southern California and Boston.
Should You Sell Your Home for Cash?
A cash sale can be much quicker, but a traditional sale is more likely to fetch a higher price for your home. Ultimately, when trying to figure out whether you should sell your home for cash, it comes down to two key factors: what condition your home is in and how long you can afford to wait. If your house needs serious repairs that you can’t afford, or you need to sell it immediately, cash-paying houses companies are a good option. If the home is in good condition and you have time to spare, you will likely make more money in a traditional sale with a knowledgeable real estate agent by your side.
If you want to explore your options, you can always see what some cash buyers are willing to offer to get a feel for what you could earn on a faster deal. Then speak to a real estate agent to get a professional opinion on what your home could realistically offer on the open market. However, don’t sign a contract with an agent first; You may have to pay them a commission even if you decide to sell for a quick buck.