In July 2021, cash home sales accounted for 23% of existing home sales. With buyers competing to make the best offer, this number is on the rise. This blog will look into the best companies that buy houses for cash.
In a Nutshell:
- At A Glance: 5 Best Companies that Buy Houses For Cash
- Reviews: 5 Best Companies that Buy Houses for Cash
- What are Cash For Home Companies?
- Types of Companies that Buy Houses For Cash
- Should you look for home investors that buy houses for cash?
- Selling with A Cash Buyer Vs. Selling with A Real Estate Agent
- Frequently Asked Questions
At A Glance: 5 Best Companies that Buy Houses For Cash
|Company||Offer Price||Service Fees||100% Online||5-Star Reviews|
|1. Houzeo||100% of Market Value||$349 Flat Fee||✅||✅|
|2. Opendoor||90% to 100% of Market Value||5% of Sale Price||❌||✅|
|3. RedfinNow||70% to 90% of Market Value||5%-13% of Sale Price||❌||❌|
|4. We Buy Ugly Houses||50% to 70% of Market Value||None||❌||❌|
|5. MarketPro Homebuyers||70% to 90% of Market Value||None||❌||❌|
Reviews: 5 Best Companies that Buy Houses for Cash
- Listing Fee: $349
- Available nationwide
- 100% Online
Houzeo is the most popular platform for sellers looking for affordable full-service companies that will give maximum exposure to cash home buyers with minimum real estate agent interaction.
🔑 Maximum Exposure to Cash Home Buyers: Houzeo.com provides unparalleled exposure for your property by listing it on the MLS. Cash home buyers hunt for properties on the open market, and Houzeo brings you one step closer to reaching your potential cash buyer.
💰 Best Price for Your Cash Sale: When you list with Houzeo.com, your MLS listing is syndicated to thousands of real estate websites like Zillow, Trulia, Realtor.com, Redfin, etc. So, along with more exposure, you get an opportunity to close at the best price. You could get the best cash deals in such a competitive buyer market.
⚡ Best Offer Terms for Your Cash Sale: With Houzeo, your sale’s legal terms and conditions can be quite flexible. In the case of cash home buyers, you can finalize the house sale with reasonable moving-out timelines and closing dates.
🧾 Proven Track Record with Cash Home Buyers: Houzeo has seen many cash home buyers and iBuyers like Opendoor, and Offerpad make an offer on properties listed on Houzeo.com. Houzeo has a proven track record for cash home buyers with competitive full cash deals.
💰 Home sellers can list their homes on the MLS for a small flat fee and save on 50% real estate agent commissions right away.
📦 Packages can be customized as per the requirements of the home sellers making it easy to opt for services like contract reviews, professional photography, pricing assistance, etc.
📱 Houzeo’s seller dashboard is intuitive and allows them to receive, review and compare offers. You can also make contract updates, counteroffers, home showings, lockboxes, yard signs, etc.
✅ Best For: Home sellers seeking maximum cash for their properties with zero hidden fees, 100% automated process, and 5-star customer support from Houzeo Concierge.
>> More: With Houzeo, you can finish the listing formalities in <60 mins. Start NOW!
- Nationwide coverage
- Savings on commissions
- 100% online – easy listing, fast changes, online showings, and online offers
- Listings get syndicated to Zillow, Realtor.com, Trulia, Redfin, and 100s of other sites
- Quick listing (within a day with Houzeo Concierge)
- Mobile app availability
Houzeo has a nationwide coverage.
The 2 Best iBuyers
iBuyers or instant Buyers buy homes for cash directly by making an all-cash offer in 24–48 hours. They typically close in two weeks or less.
Selling with an iBuyer streamlines the complex process of selling your home. You fill a questionnaire online about your home and an iBuyer instantly responds with a cash offer. However, you might receive a lower offer than what a real estate agent may suggest.
>> SAVE: iBuyer Reviews
- 5% Service Fees
- Instant Offer
- Excellent UI Experience
Headquartered in San Francisco, Opendoor is an online company that buys and sells residential real estate. They make instant cash offers on homes through an online process, makes repairs on the properties it purchases and relists them for sale.
Opendoor offers 90% to 100% of the property’s Fair Market Value (FMV).
💵 Cash Offer: Opendoor gives you an indicative cash offer within 24 business hours.
⌚ Closing Time: They close the deal typically between 10-60 days.
🚩Service Fees: 5% of the Final Cash Offer. Additionally, they charge 1% as closing costs.
👌 Best For: Experienced sellers wanting to sell desirable properties.
- Seamless registration and selling process
- Instant all cash offer
- Best for experienced Sellers
- Hefty service fees
- The repair cost breakdown isn’t disclosed in the offer
- Not suitable for first-timers or FSBO sellers
- The sales process may feel rushed
Opendoor is rated 4.4/ 5 (out of 2,614 reviews) on Reviews.io
Opendoor is available in 47 major markets across 21 states: AL, AZ, CA, CO, FL, GA, ID, IN, MN, MO, NV, NC, OH, OK, OR, SC, SD, TN, TX, UT, VA.
- 5%-13% Service Fees
- Purchases as-is
RedfinNow is an iBuyer that buys homes for cash, giving homeowners the convenience of selling without listing their properties for sale. It buys qualified homes in around 20 metro areas. It is a subsidiary of Redfin, America’s largest discount brokerage firm.
RedfinNow buys your home as-is. Therefore you can skip prepping your home for sale.
How it Works?
You can simply request an offer online. They will assess your home and make an offer. Once you accept the offer, they will arrange an inspection. You can choose the closing date and move out.
💵 Cash Offer: RedfinNow takes 24 business hours to share a preliminary cash offer.
⌚ Closing Time: Sale must close 10-60 days after accepting offer. If sale closes before you move out, you can rent back your home for 29 – 60 days after closing, depending on the market.
🚩Service Fees: 5%-13% of the final cash offer. Additionally they charge 1% as closing costs and 0%-3% for repairs.
👌 Best For: Home sellers looking for a fast, predictive sale with properties in good condition.
- Purchases properties as-is, with more stringent formalities than other iBuyers.
- Ninety-day flexible closure window
- Fees might be as high as 13% of the total amount.
- There is no incentive to trade in your home.
- There is no possibility of a late checkout.
RedfinNow has an average rating of 2.5/ 5 ( out of 7 reviews) on TrustPilot.
RedfinNow is the second-largest iBuyer (coverage-wise) and buys homes for cash in 20+ states: AL, AZ, CA, CO, FL, GA, ID, IN, MN, MO, NV, NC, OH, OK, OR, SC, SD, TN, TX, UT, VA.
The 2 Best We Buy Houses for Cash Companies
We Buy Houses for Cash Companies are ideal if you want to sell an extremely distressed property.
These companies follow the 70% rule i.e they pay no more than 70% of your home’s market value.
4. We Buy Ugly Houses
- 25+ Years In Business
- Available nationwide
- Buys Distressed Properties
“We Buy Ugly Houses” is a cash home buyer that been in the business for the last 25 years. So its business model, prestige, and process of buying homes for cash are well established. They typically focus on distressed properties.
The company buys ugly houses, i.e., distressed properties like one with structural issues, couples going through a divorce, bad mortgage financing, inherited houses, difficult-to-sell neighborhoods, etc.
How it Works?
You can request a cash offer just by by providing general information about your home, its size and status. Their representatives will evaluate your home based on local market sales and housing trends, and an offer will be made for your house.
💵 Cash Offer: We Buy Ugly Houses takes 24 business hours to share an indicative cash offer.
⌚ Closing Time: Sale closes typically within 7-60 days.
🚩Service Fees: We Buy Ugly Houses do not charge any service fee.
👌 Best For: Home sellers wanting to get rid of distressed properties.
- Get an offer in 24 to 48 hours
- Close in as little as three weeks
- No need to prep the home for listing or worry about repairs
- Pays less than what sellers could net on the open market
- Quality of service varies between franchises
- Controversial tactics for closing the sale
We Buy Ugly Houses has 2.5 out of 5 stars with 6 reviews on Yelp.
We Buy Ugly Houses operates nationwide in 1,100 locations in 45 states.
5. MarketPro Homebuyers
- Listing Fee: None
- Available in 18+ markets
- Sell As Is
After its launch in 2018, MarketPro Homebuyers has become one of the biggest cash home buyers in the Washington area. They operate in 18 states, helping homeowners sell their homes on their own timeline and with zero hassle.
MarketPro Homebuyers offer 70% to 90% of the property’s Fair Market Value (FMV).
How it Works?
You can sell your home for cash in 3 easy steps:
- You can request a quick consultation to help them understand the condition of your home.
- Meet with a member of their team to discuss your options.
- Get an approximate value of your home in the market and compare it with the cash offer from them.
💵 Cash Offer: MarketPro Homebuyers takes 24 to 48 business hours to share a preliminary cash offer.
⌚ Closing Time: Closing time is flexible, typically within 7-30 days.
🚩Service Fees: MarketPro Homebuyers do not charge any service fee.
👌 Best For: Home sellers wanting to sell their house as is.
» More: MarketPro Homebuyers Reviews
- Free moving service
- Sell As Is
- Close in as little as seven days
- Only available in a handful of states
- They pay 10% less than what they estimate you’d net after all of your costs selling on the open market
MarketPro HomeBuyers is rated 4.3/ 5 (out of 269 reviews) on Google.
MarketPro Homebuyers is available in 18+ markets.
What are “Cash for Home” Companies?
“Cash for Home” Companies are real estate buyers who make direct cash offers on homes. This facilitates the otherwise slow and cumbersome process of selling your house in the open market.
If you want to sell your home for cash without the hassle of a traditional real estate agent, these Cash For Home Companies are perfect for you. You can expect the deal to close in 2-3 weeks.
However, you are most likely to compromise on the FMV (Fair Market Value) of your home because these cash buyers generally offer a lower price for the homes they buy.
Companies That Buy Houses for Cash Near Me
Types of Cash For Home Companies
There are a variety of companies that buy houses for cash. These companies have different methods and motivations of purchasing properties.
|1. Franchise Cash Buyers||They are buyers who work with local contractors to flip a property or to keep it for rental income.|
|2. iBuyers||They are technologically advanced companies that make instant offers for your property. |
|3. We Buy Houses for Cash Companies||They buy distressed properties, homes facing foreclosures and inherited homes in need of repairs.|
|4. Buy-and-Hold Investors||They are investors who buy homes for cash and rent it out. The properties they buy generally require some amount of repair work before they rent it out.|
How Do iBuyers Work?
If you want to sell your home quickly with minimal fuss, you can opt to sell it to an iBuyer. They make use of technology and market data to offer a relatively higher price than what franchise cash buyers would offer.
Selling your home to an iBuyer involves the following steps:
1. Submit information about your home: You are supposed to fill in a short questionnaire online about your home.
2. Receive a preliminary cash offer: You will quickly receive an offer based on the AVM (Automated Valuation Model). You can choose to accept or decline the offer.
3. Complete a home inspection: An onsite visit is scheduled if you accept the preliminary cash offer.
4. Review final cash offer: Repair costs and expenses are adjusted, and the iBuying company makes a final cash offer.
5. Close the deal: You can close the deal within 7 days.
How Do iBuyers Calculate Your Home Value?
iBuyer platforms make use of cutting-edge technologies to calculate the value of your home. They use the Automated Valuation Model (AVM) that takes into account the date your home was built, your home’s unique features, location, and market trends to compare it with other homes that are already sold.
How much are iBuyer Fees?
Typically, iBuyer Fees range from 5%-13% of the sales price. These fees don’t include other costs such as taxes or closing costs.
iBuyers like Opendoor charges a 5% service charge. For closing costs, they charge 1% to 3% typically, depending on the repairs identified during the inspection.
Opendoor’s preliminary offer vs final offer is subject to changes since it includes repair fees.
Pros and Cons of Selling your home to an iBuyer
1.Saves Time: You can get a swift offer on your home and close the deal in a few days. You do not have to worry about preparing your home or staging it for sale.
🖊️Important: iBuyers like Opendoor and Offerpad have made full cash offers on the properties listed on Houzeo. Increase your chances of meeting an iBuyer while keeping the house on the open market with Houzeo.com; start listing here!
2. Certainty of Sale: There is an assurance that your home will get sold. You do not have to go through multiple offers from different buyers which takes up a substantial amount of a seller’s time.
3. No repairs are required: You won’t need to make any repairs to their property. You can sell your home as-is.
1.Less Profit From Your Sale: The convenience of selling your home to an iBuyer comes at a cost. The fees they charge comes around 6%-8% of the final sale price. As such the cost of using an iBuyer is just higher than a traditional agent.
2.No Scope of Negotiation: Cash for houses does not accommodate negotiations generally. Because iBuyers have to sustain their business model, they usually provide final offers. You trade off the profit margin when you sell with an iBuyer.
🖊️ Important: When you list your house on the MLS, there is an opportunity to negotiate cash offers and avail better rates than with iBuyers.
3. Limited Coverage: iBuyers operate in limited areas in the U.S. Your property might not be eligible if it lies outside their coverage.
🖊️ Important: Houzeo offers nationwide coverage and increases the chance of getting the maximum cash for your house.
How Do ” We Buy Houses For Cash” Companies Work?
“We buy houses for cash” companies will buy your home at a relatively low price. They make necessary repairs and later resell it for a profit.
Let us look at the process involved in selling with “We Buy Houses For Cash” companies.
1. Submit information/Receive an indicative offer: After you submit all the required information, they will do basic research and come back to you with an approximate price that they would pay for your home. You get this offer usually within the first few hours of your inquiry.
2. Formal Offer: If you are ready to continue with the indicative offer, the house buying company will ask a local, independent estate agent to carry out a formal valuation. This figure might alter during the final closing.
3. Choose a Completion Date: If you are happy with the final offer, you get to decide the closing date. A reputable company would commit to the date chosen by you.
4. Completion of the Sale: We buy Houses For Cash Companies gives you the flexibility to close the deal according to your convenient time which can be as less as 10 days.
How Much Do We Buy Houses for Cash Companies Pay?
We Buy Houses For Cash companies generally follow the 70% rule i.e. they pay no more than 70% of your home’s ARV ( After Repair Value).
Let us Look at an example:
Let’s say your home is worth $300,000 at fair market value, but it needs $25,000 in repairs. In such a case, you can expect a cash offer of only $185,000 from the seller.
🖊️ Important: You can list your home with a traditional real estate agent instead or sell as FSBO to avail maximum price for your home.
Pros and Cons of Selling your home with ” We Buy Houses for Cash” Companies
1. Quick Sale: The primary benefit of selling your home to We Buy Houses for Cash Companies is the speed at which the transaction can be completed. Working with a traditional agent, listing on MLS, and finally closing the deal takes a substantial amount of time. Whereas cash home buyers can reduce this time frame and you can sell your home in less than 2 weeks.
2. Sell your property in any condition: Another reason why companies that buy houses are preferred by home sellers is that they do not have to worry about the repair works needed. They can sell their house regardless of their condition.
3. Flexible Closing: When selling to Cash for House Companies, you do not have to wait for mortgage approval or listing paperwork. Many companies do provide a one-month closing guarantee or even go up to two weeks.
1. Non-negotiable Cash Offers: When dealing with we buy houses for cash companies, the deal is usually take-it-or-leave-it. Although there may be room for negotiations, you can’t expect more than 70% of the market value of your home.
2. Lowball Offers We buy houses for cash companies generally pay 50% to 70% of the home’s fair market value, deducting all repair, utility, and re-selling expenses. Since they want to sell this home on the open market, they will offer you marginal prices so that they get a profit when they resell.
Should You Look For Investors That Buy Houses For Cash?
For home sellers, real estate investors have become a common alternative to cash for home companies. But why do some people reach out to these investors instead of real estate agents?
Most of the time it happens that a property is not in a condition to be listed on the MLS or that the homeowner has put in little to no effort in the maintenance of the property. Additionally, the seller might be in dire need of cash or they need to be out of the property quickly.
You can find such investors in online forums or through in-person meetups. These real estate cash buyers often purchase the property as-is, with instant offers and flexible closing timelines.
It’s best to do a comparative price analysis and find how much your property is worth before you deal with real estate investors.
Below are a few tips to keep in mind if you decide to sell your home to investors that buy houses for cash.
- You do not have to worry about cleaning your property. The investor will take care of all the repair works, the expenses of which will reflect on the sale price.
- Be prepared to close quickly. An investor can normally close more quickly than a traditional agent. In any case, be prepared for a faster process to close the deal.
- Do not settle with only a single investor. You can search online for multiple local real estate investors and decide on the best for you.
- Feel free to enquire how they came up with the offer. The exact percentage of ARV(after repair value) varies, but it accounts for holding costs and a margin for their profit.
🖊️ Important: Investors acquiring homes for less than the fair market value will drive a hard bargain and take advantage of distressed home sellers.
Selling with a Real Estate Agent Vs. Selling with a Cash Buyer
When you decide to sell your house with a Real Estate Agent, you list your home on the MLS. This is the best way to maximize your cash offer because your MLS listing gets syndicated to other real estate websites like Zillow, Trulia, Redfin, Realtor.com, etc. This amplifies the exposure of your MLS listing and puts you right where cash home buyers are looking for hot properties.
You can get multiple offers and also compare the highest and the best offers from potential buyers. There is an opportunity to negotiate the sale price, closing costs, etc., and save substantially in commissions by choosing a flat fee MLS platform or low commission real estate agent.
This is the best option for home sellers who want to maximize their cash offers, avail of the best offer terms and close at a flexible schedule.
On the other hand, Selling with a Cash buyer ensures a quick sale but you trade off the profit margins for the sale.
iBuyers paid 99.4% of the fair market value in 2021. However, with their limited coverage, not all sellers can benefit from them.
We Buy Houses For Cash Companies offer 50%-70% of the fair market value of your home. This can be the best option for home sellers who are trying to sell distressed properties or properties falling in difficult-to-sell locations.
Frequently Asked Questions
What is the best company that buys houses for cash?
Houzeo is the most popular platform for sellers looking for companies that buy homes for cash. Houzeo lets you access the power of the MLS for a small flat-fee. MLS listings get syndicated on Zillow, Realtor.com, Trulia, Redfin.com and hundreds of other websites.
How do you sell a house to a cash buyer?
In most cases, you must enter your classified information via an online portal or a telephone chat. Following that, you must schedule an inspection and receive a final cash offer. Once you've decided to accept the offer, you can usually select your own closing date.
Are "we buy houses for cash" companies legit?
Yes! House-buying companies that pay cash are legitimate. But before you decide to sell your home for cash, be sure to do own your own research by checking its reviews and ratings on reliable websites.
How long does a cash sale on a house take?
Approximately, 10-30 days. It depends on the buyer and the specific situation.
How can I sell my house fast for cash?
You can opt for iBuyers or We Buy Houses For Cash Companies if you want to sell your house fast for cash. iBuyers pay relatively more but they operate in limited markets. We Buy Houses For Cash Companies on the other hand pay less and mainly focus on distressed properties. Alternatively you can work with a real estate agent and get full service.
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