From Los Angeles to Washington D.C., the U.S. housing market is experiencing a major shift. Home buyer demand has fallen sharply, and interest rates have reached record highs.
But even in this market, cash home buyers continue to purchase homes at an increasing pace. With expensive mortgages, home buyers who have cash have a leg up on buyers who are looking to get a mortgage.
For home sellers, companies that buy houses for cash are much more attractive than buyers with financing. Cash buyers offer certainty of sale, often eliminating home inspections and the hassle of lender approvals. Cash buyers also make instant offers, allowing you to close at your convenience with flexible closings.
🚀 The Rise of All Cash Offers
- Cash is King: 31.2% of Americans sold their homes for cash in December 2022, compared to 25.3% in all of 2020. This number is expected to rise in 2023 as financing becomes more expensive.
- iBuyers are Not a Viable Option: iBuyers have either shut down or have suffered massive losses. Our analysis suggests that iBuyers will offer much less than Fair Market Value (FMV) for your home in 2023 and 2024.
- Who Will Buy My House for Cash: Cash marketplaces like Houzeo.com and Sundae are the best options to get multiple cash offers for your property. HomeVestors and We Buy Houses are also good options.
Remember, not all companies that buy houses for cash are the same. Some companies can get you 100% of your property’s fair market value, while others may offer as low as 50%.
We’ve ranked the best cash home buyers so you can sell your house fast for cash.
10 Best Companies That Buy Houses for Cash
1. Houzeo.com: America’s Most Advanced Cash Buyer Marketplace
Max Exposure to Cash Buyers
Houzeo is the best option if you’re looking for multiple cash offers. Your MLS listing will be exposed to local and national cash buyers. In an attempt to win your property, investors could make multiple cash offers for your home.
- Service Fee – $349: Houzeo does not charge a 5% service fee or any undisclosed closing fee.
- Typical Offer: Up to 100% of your property’s fair market value (FMV)
- Eligible Properties: On Houzeo Marketplace, you can market properties in any condition and sell your house as is.
- Closing Offer Terms: You can specify your preferred closing date and the closing offer terms.
👉 Our Take: For sellers looking to maximize their cash offers, we recommend Houzeo’s Gold plan. You will have access to Houzeo’s advanced features to negotiate the best terms for your cash offer.
» Houzeo Reviews: Learn why Houzeo is America’s Real Estate Super App
Houzeo is a real estate marketplace and America’s #1 Flat Fee MLS service because of 4 reasons:
- Max Exposure: Houzeo MLS packages give you access to the MLS and 100s of websites like Zillow, Trulia, Realtor.com, Redfin, etc.
- 5-Star Customer Service: Houzeo has a fully staffed customer service desk available 6 days a week. Chats and emails are open 7 days a week.
- 100% Online: Houzeo is high-tech. For you, this means easy listing, fast changes, online showings, and online offers. Houzeo Mobile App is also very powerful.
- No Listing Commission: In most states, you’ll be paying just a small flat fee to list on MLS. Houzeo covers 47 states + DC! And remember, all fees are disclosed upfront, so there are no Houzeo hidden fees. You get to bypass the listing agent commission!
There are no dealbreakers with Houzeo. Check out the blog on Houzeo pros and cons.
» Houzeo Reviews: Houzeo is rated “Excellent” with a 4.9 out of 5-star rating by 4,523 home sellers on Google and Trustpilot!
Houzeo is rated 4.9 out of 5 stars by thousands of home sellers on Google & Trustpilot.
With a typical cash buyer, you only get an offer from that specific cash house buyer. Because there is no competition, that typical cash buyer will only offer 30% to 70% of your property’s value.
Houzeo is America’s most advanced real estate marketplace. If you list on the Houzeo marketplace, your listing gets exposed to all local and national cash buyers via the MLS.
This increased competition for cash offers for your house will ensure you get up to 100% of your property’s value.
» Flat Fee MLS: List your home for a flat fee and attract multiple house cash buyers!
Opendoor is the country’s biggest iBuyer. They offer fast cash for homes with flexible closing timelines.
- Service Fee: 5% of Home Sale Price.
- Typical Offer: 70% to 80% of your property’s fair market value (FMV)
- Eligible Properties: Opendoor will make cash offers only on owner-occupied properties built post-1930 with a maximum lot size of 1.5 to 2 acres. Prefabricated homes, inherited properties, or homes with tenants do not qualify for Opendoor’s cash offer.
- Closing Offer Terms: Opendoor lets you close at your pace, up to 45 days out. The final offer terms may change after the home inspection.
» Opendoor Reviews: Why Opendoor will Pay Much Less than Fair Market Value in 2023?
- Wide Coverage: Opendoor pays cash for houses in 51 markets– Boston, Albuquerque, Cincinnati, Indianapolis, Birmingham, Miami, San Francisco, San Jose, etc.
- Flexible Closing Dates: Opendoor gives you the ability to close at your convenience up to 45 days out.
- Late Checkout Upto 14 Days: Opendoor allows sellers to close on their homes, receive sale proceeds, and temporarily rent their homes.
- No Cancellation Fees: You can cancel the contract without any cancellation fee.
- No Upfront Costs: When you sell to Opendoor, you skip the traditional home selling process. No need to fix, repair or stage the property!
» Opendoor complaints: Click here to learn about the pros and cons of them.
In our research, we came across some deal breakers with Opendoor.
- Lowball Cash Offer: Opendoor’s final cash offer may be below the property’s fair market value, around 70%. They also deduct repair and closing costs.
- Hefty Service Fees: Opendoor revises the final cash offer based on the inspection report. The service fees can go from 5% to 14%. This is significantly higher compared to the 6% realtor commission.
- Opendoor May Back Out of the Deal: Some homeowners have had a bad experience with Opendoor. Opendoor backed out of the cash deal at the last minute, leaving the homeowner stranded.
- Undisclosed Repair Cost Breakdown: The difference between Opendoor’s preliminary offer vs. final offer can be humongous. In many cases, sellers were forced to pay for unnecessary “repairs.”
- Strict Eligibility Criteria: Opendoor doesn’t pay cash for inherited properties, homes with tenants, pre-fabricated or mobile homes, and properties located in a flood zone.
» Opendoor Complaints: Check out the common complaints of Opendoor.
Opendoor has a rating of 4.4 out of 5 stars on Reviews.io.
» Opendoor.com Review: Does Opendoor pay the market value of your property?
Opendoor offers a simple, convenient platform to request cash for your home. However, Opendoor’s service fees can be as high as 14% of your home’s sale price. The repair cost breakdown is not disclosed in the closing statement.
In 2023’s slow real estate market, Opendoor may not be the best option to sell your home. Their offer will be below the fair market value of your property.
» Offerpad vs. Opendoor: Compare the two iBuyers before requesting a cash offer on your house.
NATIONAL CASH BUYER
HomeVestors is a nationwide network of real estate investors. Each office is operated by a local real estate investor independently. This cash home buyer company is the parent brand of We Buy Ugly Houses.
- Service Fee: None.
- Typical Offer: 50% to 70% of Fair Market Value (FMV)
- Eligible Properties: Distressed properties with foundational issues, houses of couples going through a divorce, homes with bad mortgages, inherited homes, properties in high-crime neighborhoods, etc.
- Closing Offer Terms: HomeVestors provides a flexible closing date, up to 30 days out. Offer terms are inflexible and depend on the local real estate investor of your region.
👉 Our Take: This cash buyer company is best for home sellers looking to unload an extremely distressed house quickly.
» HomeVestors Reviews: ALL you need to know about America’s biggest cash house buyer network.
- Fast Cash for Distressed Homes: HomeVestor investors make fast cash offers, regardless of the property’s condition. The initial offer is based on comparable properties in the area and housing market trends.
- Zero Service Fees: Home Vestors doesn’t charge any service fee when you sell your property for cash.
- Zero Upfront Costs: When selling to HomeVestors.Com, you don’t need to prep the home or worry about repairs. There is no listing paperwork or need for photography!
- Flexible Closing: You can choose a flexible closing schedule when you sell to HomeVestors, the ‘Home buyers of America.’
- Near Nationwide Coverage: HomeVestors has 800 independently owned franchisee offices in 45 states.
» How much does Homevestors pay for houses? click here to know more about the price.
In our research, we came across some deal breakers with HomeVestors.
- Lowball Cash Offer: HomeVestors pays less than what sellers could gain on the open market. The cash offer is ~50% to 70% of the property’s FMV.
- HomeVestors Will Spam You: Past sellers have complained about HomeVestor’s incessant spamming. The emails don’t stop even if you decline their cash offer and unsubscribe from the mailing list.
- HomeVestors.com is Not 100% Online: Home Vestors has a limited tech stack. This means a lot of processes, like requesting a counteroffer or managing inspections, will be offline and manual. They don’t even have a mobile app.
- Inconsistent Quality of Service: When you sell to HomeVestors, you sell your house to a local investor. The service quality will differ based on that investor’s franchisee.
HomeVestors has 2.2 out of 5 stars with 5 reviews on Better Business Bureau. HomeVestor’s Dallas office has a 3.2 out of 5 stars, with 24 reviews on Google.
» HomeVestors Review: Is HomeVestors the best traditional cash buyer in 2023?
HomeVestors is the biggest cash home buyer franchisor in the U.S., with over 800 offices nationwide. The company also owns the “We Buy Ugly Houses” brand.
Each HomeVestors office is independently owned and operated by a local real estate investor. HomeVestors’ investors typically offer 50% to 70% of the fair market value. They may also deduct the cost of repairs at closing.
» Seller’s Closing Costs Calculator: Get an estimate of closing costs with Houzeo’s home sale proceeds calculator.
Offerpad has the fastest closing among iBuyers. Based on housing market trends, their patented evaluation tool will generate an initial offer for your home.
They also have a “List on MLS” package where an Offerpad representative will list your property on the open market.
- Service Fee: 6% of Home Sale Price
- Typical Offer: 70% to 80% of Fair Market Value (FMV)
- Eligible Properties: Offerpad offers cash for houses built after 1960, with a maximum lot size of 1 acre and a max valuation of up to 1M. Homes with significant foundational issues or rundown properties are not eligible. Check this out to know more about offerpad criteria.
- Closing Offer Terms: When you sell to Offerpad, you can close as early as 7 days. The initial offer terms may change after the inspection of your house.
» Offerpad Reviews: Is the Fast Closing Schedule Worth the Tradeoff?
- Lightning Fast Closing: With Offerpad’s cash-for-house offer, you can close your property in seven days.
- No Need to Fix the Property: When you sell your house for cash, you don’t incur upfront costs to fix, prepare or stage the house.
- Extended Checkout: Long-term stay option for house sellers who want to push their closing date after acceptance.
- Broad Coverage: Offerpad buys houses for cash in 27 markets- Birmingham, Phoenix, Denver, Fort Collins, Fort Myers, Jacksonville, Atlanta, Kansas City, etc.
» What is Offerpad? Check this out to know more about them.
In our research, we found some issues associated with Offerpad Real Estate.
- Lowball Cash Offer: Offerpad’s cash offer is below market value, typically around 60% to 80% of the fair market value.
- High Service Fees: The Offerpad cash offer is readjusted based on repairs identified by the home inspector. The service fees can go up to 13% of the home sale price.
- Offerpad Cancellation Fee – 1%: If you are only 4 days out of your closing date and you decide not to accept Offerpad’s cash offer, Offerpad charges a cancellation fee of 1% of the home sale price.
- Inflated Repair Costs: Offerpad’s final cash offer is calculated after deducting home repair and seller closing costs. The difference between Offerpad’s initial offer and the final offer is huge.
» Offerpad Review: Read the in-depth review of Offerpad.
Offerpad has a 4.6 out of 5 stars rating on TrustPilot.
» Offerpad Review: Check out customer reviews of Offerpad.
Offerpad’s closing process is faster than other “cash for houses” companies. So, you should request a cash offer from Offerpad if you want to sell your house quickly.
However, the difference between Offerpad’s initial and final cash offers is quite high. Once, a home seller was offered $189,000 but received a lowball offer of $149,000 after Offerpad’s home inspection.
» What Does a Home Inspector Do: Here’s what a home inspector looks at in a property inspection.
5. We Buy Ugly Houses
We Buy Ugly Houses
We Buy Ugly Houses is a 20-year-old cash home buyer franchise. Independent real estate investors own and run each franchisee office. The parent company trains the franchisee but doesn’t micromanage their cash home-buying preferences. The brand, We Buy Ugly Houses is owned by HomeVestors.
- Service Fee: None
- Typical Offer: 50% to 70% of Fair Market Value (FMV)
- Eligible Properties: Ugly homes with structural issues, couples going through a divorce, a death in the family, bad mortgage financing, inherited houses, high-crime neighborhoods, etc.
- Closing Offer Terms: WeBuyUglyHouses provides a flexible closing date, up to 30 days out. Offer terms are subject to change based on the local franchisee office.
👉 Our Take: We Buy Ugly Houses is best for sellers who want to unload their distressed houses quickly. You shouldn’t expect more than 70% of your property’s market value.
» We Buy Ugly Houses Reviews: Everything you need to know about these home cash buyers.
- Fast Cash Offers for Homes: WeBuyUglyHouses.com will share a preliminary cash offer for your property in 24 to 48 business hours.
- Zero Service Fees: WeBuy Ugly Houses doesn’t charge any service fee in exchange for the convenience of selling your home for cash.
- Fast Closing: We Buy Ugly Houses.com will close in just seven days after you accept their cash offer.
- Firm Cash Offer: We Buy Ugly House’s cash offer is usually in line with the preliminary cash offer unless the inspector identifies major flaws during the home inspection.
- Wide Coverage: We Buy Ugly Houses offers cash for homes in 1,100 locations across 45 states.
- No Upfront Costs: When selling to WeBuyUglyHouses Com, you don’t have to fix your leaking roof or the mold residing in your walls.
» We Buy Ugly Houses Review: How does WeBuyUglyHouses.com calculate your cash offer?
In our research, we found some issues associated with We Buy Ugly Houses.
- Lowball Cash Offer: We Buy Ugly Houses pays less than what sellers could get on the open market. The cash offer is around 50% to 70% of the property’s fair market value.
- WeBuyUgly Houses.com is Not 100% Online: We Buy Ugly has a limited tech stack. This means a lot of processes, like requesting a counteroffer or managing inspections, will be offline and manual. They don’t even have a mobile app.
- Non-Negotiable Cash Offers: We Buy Ugly Houses will not offer more than 70% of your property’s fair market value. They rarely increase the price quoted in the initial cash offer.
- Inconsistent Quality of Service: When you work with house buyers like WeBuy UglyHouses, you sell your house to a local real estate investor. The service quality will differ based on the independent investor you are dealing with.
» Reviews of We Buy Ugly Houses: Check WeBuyUglyHouses reviews before requesting a cash offer for your condo.
We Buy Ugly Houses has 2 out of 5 stars with 6 reviews on Yelp.
» We Buy Ugly Houses Complaints: Check what customers say about WeBuyUglyHouses.com.
We Buy Ugly Houses, a trademark of “HomeVestors”, operates on a franchisee model. Local investors or those flipping houses in the U.S. are the owners of these franchises.
Each WeBuyUglyHouses franchisee has its own rules, so the cash offer terms and service quality may not be consistent.
6. We Buy Houses
We Buy Houses
WeBuyHouses.com is a pre-vetted real estate investor network. We Buy Houses “thoroughly” vet their investors before authorizing them to operate independent offices in their respective jurisdictions.
- Service Fee: None
- Typical Offer: 50% to 70% of Fair Market Value (FMV)
- Eligible Properties: Distressed properties with structural issues, relocation of the homeowner, couples going through a divorce, a death in the family, flawed mortgage financing, inherited homes, high-crime neighborhoods, etc.
- Closing Offer Terms: We Buy Houses provides a flexible closing date, up to 60 days out. Offer terms are inflexible.
👉 Our Take: We Buy Houses operates on a franchise model, so the quality of service may differ. You should check the reviews of the local franchise before requesting cash for your home.
» We Buy Houses Reviews: Everything you need to know about WeBuyHouses.com.
- Fast Cash Offers for Houses: You will typically receive WeBuyHouses.com’s initial cash offer within two days.
- Zero Service Fees: WeBuyHouses doesn’t charge any service fee in exchange for the convenience of selling your home for cash
- Fast Closing: We Buy Houses.com will close in just seven days after you accept their cash offer.
- Firm Cash Offer: We Buy Houses Com’s cash offer is usually in line with the preliminary cash offer unless the inspector identifies major flaws during the home inspection.
- Broad Coverage: We Buy Houses makes cash offers on properties in 200 markets in over 30 states. WeBuyHouses com has 2,700 offices nationwide.
- Zero Upfront Expenses: When selling to WeBuyHouses Com, you don’t need to prep the home or worry about repairs.
» What is we buy houses? To know more about them check this out.
In our research, we came across some dealbreakers with We Buy Houses.
- Lowball Cash Offer: We Buy Houses investors may put in lowball cash offers around 50% to 70% of the fair market value. This is lower than what you can get on the open market.
- WeBuyHouses.com is Not 100% Online: WeBuyHouses has a limited tech stack. This means a lot of processes, like requesting a counteroffer or managing inspections, will be offline and manual. We Buy Houses does not offer a mobile app.
- Non-Negotiable Cash Offers: A ‘We Buy Houses’ investor may not offer more than 70% of your property’s fair market value. Even if your property isn’t distressed, they will rarely budge on the offer price.
- Inconsistent Quality of Service: When you sell to a cash buyer franchise like WBH, you sell your house to a local real estate investor. The service quality will differ based on the independent investor you are dealing with.
» WeBuyHouses.com Reviews: Learn how WeBuyHouses.com works.
We Buy Houses has zero customer reviews on popular review sites like Google or Trustpilot.
» webuyhouses.com reviews: Check this out to know more about them.
WeBuyHouses.com is a private, pre-vetted network of real estate investors. We Buy Houses’ investors will buy properties as-is for cash.
If your property is inhabitable and only needs some cosmetic repairs, you should consider making repairs. Nationwide investors scour the MLS for fix-and-flip homes, so you might get a competitive cash offer.
» Flat Fee MLS Listing Services Near You: List your home on the open market with a local flat fee service.
7. MarketPro Homebuyers
AS IS CASH WHOLESALER
MarketPro Homebuyers is one of the biggest cash home buyers on the East Coast, buying 25 houses monthly. Apart from being a home cash buyer, MarketPro Homebuyers is also a wholesaler.
- Service Fee: None
- Typical Offer: 30% to 70% of Fair Market Value (FMV)
- Eligible Properties: Houses that need extensive repairs, homes with probate or power of attorney issues, homes of couples going through a divorce, inherited properties, vacant homes, etc.
- Closing Offer Terms: MarketPro Homebuyers provide a flexible closing date, up to 60 days out.
👉 Our Take: With MarketPro, there is a certainty of getting a cash offer because of Marketpro’s investor network. The cash offer may not be more than 70% of the home’s fair market value though.
» MarketPro Homebuyers Reviews: Is there truly no service fee with this cash house buyer?
- Packing & Moving Assistance: Marketpro makes moving to a new house hassle-free with an in-house moving service.
- No Renovation or Repair Costs: Marketpro.com purchases houses as-is. There is no need to renovate or repair before requesting a cash offer or after an offer has been made.
- Fast Closing: The preliminary cash offer is sent within 24 to 48 hours. MarketProHomebuyers.com closes in as little as seven days.
- No Transfer and Recordation Costs: When you sell to Marketpro, you don’t pay any closing costs.
» Is Marketpro homebuyers legit? Check this out to know more about them.
In our research, we came across some dealbreakers with Marketpro Homebuyers.
- Marketpro Pays Below Market Value: Market Pro HomeBuyers prides itself on giving below-market-value cash offers. The cash offer will likely not be more than 70% of the fair market value.
- Marketpro’s Invasive Sales Tactics: 73 out of 337 Google reviews are from consumers complaining about being on Marketpro’s Lead list. Even if you don’t request cash from Marketpro, once you are on this list, you will be spammed with mailers, emails, postcards, etc.
- Limited Coverage: MarketPro Homebuyers buy real estate for cash in 21 markets across 5 states. You should consider other reputable cash home buyers if your property lies outside Marketpro’s coverage.
» MarketPro Homebuyers Coverage: Find the real estate markets where MarketPro offers cash.
MarketPro HomeBuyers has a rating of 4.1 out of 5 stars on Google with 337 reviews.
MarketPro Homebuyers is a cash buyer of houses that owners want to get rid of. Whether it’s a property with bad tenants or you want to sell an inherited home, you should consider these AS-IS property buyers.
Marketpro’s uncanny marketing gimmicks are difficult to understand. In nearly 70 out of the 337 Google reviews, homeowners have complained about unsolicited emails, messages, and postcards.
8. Sundae Real Estate
PRE-VETTED INVESTOR NETWORK
Sundae Real Estate
Sundae Real Estate isn’t a typical “we buy houses for cash” company. It is a ‘cash investor marketplace’ where pre-qualified real estate investors can place bids for homes.
After your house has been assessed by Sundae’s home inspectors, they will create a listing on Sundae.com. This listing is broadcasted to Sundae’s subscribers.
- Service Fee: None
- Typical Offer: 30% to 70% of Fair Market Value (FMV)
- Eligible Properties: Rundown homes that need too many repairs or expensive upgrades, homes with bad tenants, inherited properties, etc.
- Closing Offer Terms: Sundae provides a flexible closing date, up to 60 days out. Offer terms are inflexible, but there is a possibility for negotiation.
👉 Our Take: No matter how distressed your property is, Sundae’s investors will make a cash offer. If you want to quickly unload a severely distressed property, listing on Sundae.com may help.
» Sundae Real Estate Reviews: Is it a cash investor marketplace in 2023?
- Marketplace With Pre-Vetted Investors: Sundae Real Estate is a unique cash buyer marketplace. It has over 3,000 pre-vetted real estate investors. Sundae acts as the communication platform between the home seller and the home buyer till the property closes.
- Multiple Cash Offers: Interested Sundae investors will make bids on your distressed house. If your home is appealing, it may attract multiple cash offers.
- Cash Advance of Up To $10,000: Eligible home sellers can receive up to $10,000 through Sundae’s Cash Advance Program. Any funds you may receive through the Cash Advance are part of, and not in addition to, your sale proceeds. This is not available for tenant-occupied properties.
- Zero Service Fees: Sundae Marketplace doesn’t charge any service fee.
- No Upfront Costs: When selling with Sundae, you don’t have to invest in home staging companies to renovate or fix broken door frames. You can sell your house as-is.
» How does Sundae work? Check this out to learn more about them.
In our research, we came across some deal breakers with Sundae Marketplace.
- Lowball Cash Offer: Sundae investors pay less than what sellers can get on the open market. The cash offer is around 50% to 70% of the property’s fair market value.
- Sundae Marketplace is Available in 11 Markets ONLY: Sundae homebuyers make cash offers in limited locations- Atlanta, Dallas, Fort Worth, Houston, Inland Empire, Las Vegas, Oakland, Orange County, Los Angeles, Orange County, San Diego, and Seattle.
- Non-Negotiable Cash Offers: Sundae.com homebuyers will not offer more than 70% of your property’s fair market value. You can try to negotiate if they overlooked something important, but Sundae investors will rarely budge on the price.
- Home Selling Experience Depends on the Investor: When you sell to home buyers like Sundae, you sell your house to a local investor. Although Sundae is the communication platform throughout the offers stage to closing, the home selling experience may differ based on the investor you have chosen.
Sundae has an average rating of 3.53 out of 5 stars on the Better Business Bureau, with 42 reviews, and 4.3 out of 5 on Google, with 22 reviews.
Sundae Marketplace is a pre-vetted network of investors. It is ideal for distressed home sellers looking to offload a property as-is.
No matter the condition of the property, you will get an offer when you list it on Sundae.com. The cash offer will likely be 50% to 70% of the home’s market value though.
9. Orchard Homes
HOME TRADE IN
Orchard Real Estate
Orchard Homes (formerly Perch) is a real estate cash buyer that finances the purchase of your new home before you sell the current one. Orchard offers 2 packages:
1. Move First – 6% Service Fee + $2,900 Program Fee: This is Orchard’s classic home trade-in package. Orchard will make a non-contingent cash offer on your new house before you sell your old home. Orchard will list your old home on the MLS and help you sell it for top dollar.
2 List With Orchard – 5.5% to 6% Commission Fee: Orchard will list your home on the open market for a 12-month term. You can opt for Orchard’s backup cash offer so that you get equity even if your property doesn’t get any offer.
- Service Fee: 6% to 13% of Home Sale Price
- Typical Offer: 50% to 70% of Fair Market Value (FMV)
- Eligible Properties: Orchard offers cash for single-family homes built between 1920 – 2020 that are not currently listed on the market. The valuation must fall between $150K to $1M.
- Closing Offer Terms: With Orchard Homes, you can close within 20 to 30 days. If you use Orchard Home Loans, their loans subsidiary, you won’t have to pay extra fees, which are 6 times more than a traditional money lender.
👉 Our Take: If you want to trade your current home while seeking the new one and don’t mind leaving some cash on the table, then you should consider Orchard Homes.
» Orchard Homes Reviews: Is Orchard Homes worth your time in 2023?
- Hassle-free Home Trade-In and Financing: With Orchard’s Move First package, you can buy your next home even before you sell the current one. Orchard helps you leverage your property for equity, so you don’t need to look for mortgage lenders to finance your next home.
- Orchard Makes Your Home Market-Ready: In both packages, Orchard’s home advisors support you in planning the sale of your current home. They even invest up to $1,000 for cleaning and staging to make the property “market-ready.”
- You Can Sell Directly to Orchard: On the off-chance that your property doesn’t get an offer on the open market, you can sell to Orchard directly. As per the agreement you sign at the time of listing, Orchard includes a clause to buy your home if it doesn’t sell on the MLS.
In our research, we came across some deal breakers with Orchard Homes.
- High Service Fees— 6% to 13%: The service fee plus closing costs and repayment expenses of the old mortgage are around 6% and may increase to 13%. The final home sale proceeds can be even lower than what you get when selling with a 6% commission realtor!
- Orchard can Decrease Your Asking Price by 10%: When you opt for the ‘List with Orchard’ program, Orchard’s listing agent will list your home on the MLS. A clause in their agreement allows them to decrease the asking price by 10%, and that will decrease the home sale proceeds. Read the fine print before signing any agreement with Orchard.
- Repair Estimates are Too Costly: Orchards’ repair estimate and renovation costs can be expensive, and this may drastically reduce the seller’s final profits.
- Extremely Limited Coverage: Orchard only covers 6 markets – Atlanta, Austin, Dallas-Fort Worth, Denver, Houston, and San Antonio.
- Low-Ball Cash Offers: Customers have complained about lowball cash offers and waiting for 30 days to receive the initial cash advance. If you need to sell your home quickly for cash, then such delays would feel like shooting oneself in the foot!
Orchard Real Estate has decent reviews with a rating of 4.3 out of 5 stars on TrustPilot.
» Orchard Review: Check out what customers are saying about Orchard Homes
Orchard is a home trade-in power buyer. They make homeownership affordable for sellers who don’t want to go through the hassle of getting a conventional mortgage.
If you have to sell your house because of a divorce, you may also need to buy a house fast. Home trade-in companies like Orchard and Knock HomeSwap will offer cash for your new home and help you sell the old one.
But, Orchard’s 6% service fees can go up to 13%. This makes Orchard’s cash offer a bad option for home sellers looking to save.
1-800-CashOffer has a network of cash buyers. This network includes seasoned professionals and real estate veterans, not amateur flippers.
The cash offer is calculated based on local market data. It is possible to get multiple cash offers for your house if it is in a desirable neighborhood.
- Service Fee: None
- Typical Offer: 50% to 70% of Fair Market Value (FMV)
- Eligible Properties: 1-800-CashOffer will make a cash offer in distressed, unfavorable locations as well as desirable neighborhoods.
- Closing Offer Terms: 1-800-CashOffer provides a flexible closing timeline, up to 90 days out. The offer terms may be negotiable.
👉 Our Take: 1-800-CashOffer is best for home sellers who don’t wish to make any repairs and don’t mind selling their home at a lower rate.
- Nationwide Coverage: 1-800-CashOffer offers cash for houses in all 50 states.
- Multiple Cash Offers: If your home is in a desirable neighborhood, you could get multiple cash offers.
- Zero Service Fees: 1-800-Cash doesn’t charge any service fee or closing costs.
- No Upfront Costs: You don’t have to fix or spend dollars on renovation costs. You can request cash for your house in its existing consition.
- Offers May be Less than Fair Market Value: 1800-Cash-Offer investors pay less than what you can get on the open market. The cash offer is typically ~50% to 70% of the property’s fair market value.
- “Cash for Homes” Scams: This network is not pre-vetted; anyone can claim to be a cash investor. You could end up losing your home to we buy houses ripoff schemes if you aren’t careful. Never sign any document without consulting a real estate attorney.
1-800-CashOffer has a 5 out of 5 stars on the Better Business Bureau.
1-800-Cash Offer is one of the oldest cash home buyer networks in the U.S. You can call on +1-800 toll-free to request cash for your property.
You may not get maximum cash for your house, though. These home cash buyers will only offer up to 70% of the home’s fair market value.
Bonus: Noteworthy Cash House Buyers
- HomeLight Simple Sale: HomeLight Simple Sale offers cash for homes for properties in almost any condition. Along with a no-fuss, competitive cash offer, the platform recommends its partner agents.
- Flyhomes: Flyhomes is a power buyer and a home trade-in mortgage lender. They will buy your house for cash and help you finance the next home you want to buy.
iBuyers That No Longer Offer Cash for Homes
- Zillow Offers: Zillow, the biggest real estate marketplace, started its iBuying arm in 2018. After losing $881M while over-paying cash for properties, in November 2021, Zillow stopped buying houses. Check out the story of the fall of Zillow Offers.
- RedfinNow: Redfin, the biggest discount real estate broker in the U.S., entered the home-flipping business with RedfinNow in 2017. In November 2022, RedfinNow shut down due to increasing operating costs.
Are Companies That Buy Houses for Cash Legit?
Yes, companies that buy houses for cash or cash house buyers are legitimate and operate legally nationwide.
🚨 Cash for Houses Scams: Remember to inspect how the cash company operates before you sign any real estate contract. A legitimate home buyer will never ask you to pay cash!
Types of Cash Home Buyers
Companies that buy homes for cash help home sellers skip the hassle of listing on the MLS, marketing, home staging, etc. The four types of cash home buyers are:
- “We Buy Houses for Cash” Companies: The “fix-and-flip” house cash buyers that buy distressed properties, make repairs, and sell on the open market. They pay 30% to 70% of the home’s fair market value and don’t have any service fees or closing costs.
- iBuyers: Home-buying companies that use proprietary algorithms and determine a cash offer for your house. In 2023, iBuyer companies will offer ~70% to 80% of the fair market value.
- Buy-and-Hold Cash Buyers: A buy-and-hold cash buyer will convert a distressed house into a rental property. They do not sell the upgraded property for a one-time profit and will enjoy a steady source of income.
- Home Trade-In Services: A home trade-in company will offer cash on your house to help you buy another property. They fund your next house while you sell the one you’re living in.
- 🏚️ Selling a Home in Poor Condition: We recommend “We Buy Houses for Cash” companies if your property is in bad shape. However, if your property only needs cosmetic repairs, then you should list it on MLS.
How Do Companies That Buy Houses for Cash Work?
“We buy houses for cash” companies buy houses “as-is” at a much lower rate than the market price and mostly work offline. Let’s look at the steps involved when you sell your house to a “We Buy Houses for Cash” company:
- Share Your Property Details: Cash buyer companies will collect basic information like the location and condition of your property. You can do this via phone or their website.
- Review the Preliminary Cash Offer: After comparing similar properties in the area, the cash home-buying company will make an offer. Typically it is 30% to 70% of the home’s fair market value.
- Complete a Home Inspection: An inspector will perform a home inspection if you accept the initial offer. After adjusting repair expenses and holding costs, the cash house-buying company will send a final offer.
- Accept the Final Cash Offer & Close: If the final cash offer matches your expectations, then you can finalize the closing timeline.
How Much Do “We Buy Houses for Cash” Companies Pay?
Companies that pay cash for houses use the 70% rule.
Suppose your home is worth $300,000, and you have a defective roof that will cost $25,000 in repairs. So, you can expect a cash offer of about $185,000.
The 70% Rule: Cash buyers of houses will never pay more than 70% of the property’s fair market value. They have to repair and renovate the acquired homes. The overhead expenses are deducted from your home sale proceeds.
“We Buy Houses for Cash” Companies: Pros and Cons
The biggest benefit is the speed and convenience. Selling a house for cash will almost always net you 10% to 30% less than a financed offer. Let’s look at the pros and cons of selling a home to a cash home buyer:
- Fast Cash Sale: In the traditional model, you have to list on the MLS and wait for potential buyers. However, with “We Buy Houses for Cash” companies, you get a cash offer within 24-48 hours of submitting details on their website.
- Flexible Closing: “We Buy Houses for Cash” companies move faster than traditional buyers. Home sellers can close on their timeline and need not wait for listing paperwork or mortgage pre-approvals!
- No Service Fees: “Cash for homes” companies don’t charge any service fees. The net profit after fixing and selling your home is enough for them to sustain their fix-and-flip model.
- No Upfront Costs: To earn maximum cash, home sellers invest in real estate photography before listing the properties on the MLS. “We Buy Homes for Cash” buyers purchase homes as-is, so you can skip repairs and marketing costs.
- Lowball Cash 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. Although there may be room for negotiations, you can’t expect more than 70% of the market value of your home.
- Non-Negotiable Deals: When dealing with “we buy houses for cash” companies, the deal is usually take-it-or-leave-it. You can try to negotiate if the company overlooked something important, but most cash investors will not budge on price.
- Some Cash Buyers Will Make You Pay Closing Costs: Homeowners are forced to pay the seller’s closing costs, and it’s not disclosed on the cash buyer’s site. You should always read the terms and conditions document carefully.
Alternatives to Companies That Buy Houses for Cash
- List Your Home With a Flat Fee MLS Service: You can get up to 100% of the fair market value on the open market. High-tech For Sale By Owner websites like Houzeo will list your home on the local MLS within 24-48 hours and help you sell fast! 22% of homes listed on MLS sold above their final list price in February 2023.
- Hire a Top Realtor: Top real estate agents have the expertise to help you sell your property fast within a set timeline. However, the best realtors will charge a 6% commission. That amounts to thousands of dollars in realtor commission! It’s the worst option if you want to earn maximum cash.
- Sell “For Sale By Owner”: Selling your home purely For Sale By Owner implies no access to the MLS. You market your property, conduct market research, manage offers and showings, etc., all by yourself.
- Work With Flat Fee Brokers: A flat fee broker charges a fixed fee to help you sell your property. A seller can save more on listing commission and a buyer can get a rebate.
Frequently Asked Questions
1. What is the best company that buys houses for cash?
Houzeo is the most popular platform for sellers looking for companies offering cash for homes. Not a cash buyer themselves, Houzeo.com lets you access the power of the MLS for a small flat fee, giving you exposure to cash house buyers. iBuyers, including Opendoor, have also made offers on properties listed on Houzeo.com.
» How Much Does it Cost to List on MLS: Read to Know Why MLS Listings are Worth the Cost.
2. How can I sell my house fast for cash?
Opt for a cash buyer marketplace. “We buy houses for cash” companies are best for distressed homes and will offer 50% to 70% of the FMV. An iBuyer will have strict purchase criteria and may not offer more than 70% FMV. Marketplaces like Houzeo let you expose your property to both nationwide cash buyers and iBuyers simultaneously. This exposure increases the chances of selling your home fast for cash.