Cash-homebuyer companies in 2024

If you’re wondering about selling your house in today’s evolving market, you’re certainly not alone. But you don’t necessarily have to go through the trouble of finding a buyer on the open market. Instead, you can consider selling directly to a company that will pay in full, upfront — an all-cash deal. Here’s everything to know about the various types of real estate companies that buy houses for cash.

Why sell to a cash homebuyer?

There are different nuances to the way that different cash homebuyers operate, but they all generally have the same simple promise: They pay in cash, and they do it fast. There’s no need to wait for a buyer to secure financing, or to wonder whether it will be approved. The business model comes with plenty of upsides for sellers:

• No waiting: Selling a home this way is speedy — in fact, with some companies that buy houses for cash, you can simply enter your address online and receive an instant offer within a few minutes. Closings happen quickly too, sometimes within just a couple weeks. If you’re on a tight timeline, need to relocate as soon as possible or need the cash quickly, this can be a big benefit.
• No delicate negotiations on price or timeline: “You also know how much you’re going to sell for, and when you’ll sell,” says Jennifer Dohm, a former vice president of brand communications at the iBuyer Offerpad. “This empowers people who are looking to buy another home with the knowledge of what they’re working with for their next offer, or to make life decisions with a solid timeline of their choosing.”
• No real estate commissions: With traditional real estate transactions, sellers foot the bill for their agent and their buyer’s agent, which typically takes 5 to 6 percent away from the final sale price. Most cash offers have no agent commissions involved. There can be other fees that add up to just as much, however, so it’s important to read the fine print.
• No need to pay for work before listing: Many sellers invest extra money in their home before listing it for sale, in the hope of attracting a higher price. That might include small repairs, bigger upgrades or home staging to make the property look picture-perfect. When you sell your home to a company that pays in cash, there’s no need for that — some even specialize in buying homes “as is,” with no need to even tidy up or haul away the garbage.
• No worrying that the deal might fall through: If you’re selling to an individual, there are plenty of scenarios in which the sale might not actually happen. Perhaps they decide to back out after a home inspection uncovers an issue, or maybe a lender doesn’t approve their loan. If you receive an offer from a company that’s paying in cash, you can feel fairly confident that the deal will get done.

There is one major downside to selling to a cash buyer, though: You are very likely to bring in a lower price than you would with a traditional home sale. However, sometimes all the pros can outweigh this con. It all depends on your situation and why you want to sell the house.

What types of companies buy houses for cash?

There are a few different kinds of companies that typically make cash offers on homes:

Companies that buy houses for cash

Traditional cash buying companies

HomeVestors

Also known as the “we buy ugly houses” company, HomeVestors was founded in 1996 and operates more than 1,100 franchises around the country. As the tagline implies, this company is happy to buy your house even if it doesn’t look list-ready. The “ugly” isn’t just about physical appearance, either: It buys properties with high-interest financing that isn’t working for homeowners; houses with bad memories due to divorce or death; and a range of characteristics that might make living there less than desirable for the current owner.

• Fees: No closing costs required for sellers (they’re paid by HomeVestors)
• Locations served: 46 states, plus Washington, D.C.

We Buy Houses

Founded in the late 1990s, this company is literally called We Buy Houses and has independent offices in more than 200 markets across the country. Rather than operating purely online, after you enter your address, a local representative comes to your home in person to assess its value and make a cash offer. Like other companies that pay cash for houses, it purchases homes as-is, so you won’t need to make any repairs. In most cases, it says, you’ll receive an offer within 48 hours, with the sale finalized within one to two weeks.

• Fees: No closing costs required for sellers (they’re paid by We Buy Houses)
• Locations served: More than 30 states, including Florida, California and Michigan

MarketPro Homebuyers

This regional company was established in 2012 and buys houses, condos and townhomes for cash in the mid-Atlantic area and Florida.

• Fees: No closing costs required for sellers (they’re paid by MarketPro Homebuyers)
• Locations served: Maryland, Pennsylvania, Virginia, Washington, D.C. and Florida

HomeGo

HomeGo buys a lot of homes — one every 20 minutes, according to its website. If you need cash really fast, the company offers closings in as little as seven days.

• Fees: No closing costs required for sellers (they’re paid by HomeGo)
• Locations served: 23 states, including Nevada and Missouri

I Buy Houses

In business since the mid-1990s, I Buy Houses is a network of individuals and companies that want to buy homes for cash. The company acts as an intermediary, connecting homeowners who want to sell with interested members who might want to buy.

• Fees: Sellers may need to pay closing costs, depending on the conditions of the sale
• Locations served: All 50 states and Washington, D.C.

Sundae

Another network of individuals and investors — but with Sundae, you list your home on the company’s network, and it performs an in-person visit. Four days after a home inspection is completed, it presents multiple cash offers from multiple buyers for you to choose from.

• Fees: No fees or closing costs for sellers (they’re paid by buyers)
• Locations served: 10 metro areas throughout California and Texas

Flyhomes

Flyhomes is a brokerage — it helps customers buy a new home before selling the one they currently live in. In addition, what it provides is not really a true cash offer. The company has a mortgage lending operation, so you’ll have a short-term loan, plus the option for a long-term loan for your new mortgage once your old home sells.

• Fees: Sellers will be charged for applicable taxes, any repairs needed and 2.5 to 3 percent of the sale price to cover the buyer’s agent’s commission
• Locations served: Six states, including Colorado and Washington

iBuyers

Opendoor

Opendoor, which launched in 2014, buys homes with valuations of up to $600,000 (with some exceptions — and there are other criteria to be met as well, including lot size and year built). Enter your address and basic information about your home on the company’s website and, based on these details and comps in your area, its algorithm will generate a preliminary cash offer for your property within minutes. The company primarily operates in major metro areas, so it might not be a viable option for homeowners in more rural areas.

• Fees: Sellers pay a flat service charge of 5 percent of the home’s sale price, plus closing and repair costs
• Locations served: More than 50 metro areas, including hotspots like Atlanta, Dallas–Fort Worth and Phoenix

Offerpad

Established in 2015, Offerpad is an iBuying company with two solutions for home sellers: Express and Flex. Express provides an offer within 24 hours and up to 90 days to move out. If the cash offer isn’t as much as you’d like, you can opt to list your home through Flex and test the open market, keeping the cash offer as a backup.

• Fees: Sellers pay a service fee of 5 or 6 percent and closing costs (estimated at 1 percent)
• Locations served: 14 states, including Arizona, Florida and Illinois

HomeLight

HomeLight’s Simple Sale offering values your home based on data from your neighborhood. You can get paid in just 10 days, and you have up to 30 days from closing to move out.

• Fees: HomeLight doesn’t charge sellers fees or closing costs, but individual buyers may ask sellers to cover certain costs.
• Locations served: Most of the country — enter your address online to see if your home is eligible.

Orchard

Orchard doesn’t really buy your home for cash, per se. Instead, its Move First program allows you to buy a new home, move in, and then sell your old property. Here’s how it works: You receive cash upfront, which can be used for a down payment or closing costs on a new home or for mortgage payments on your existing one. Then, Orchard takes care of sprucing up your old home and listing it after you find a new place to live. The idea is to help streamline buying a new home while selling your old one.

• Fees: Sellers pay a brokerage fee, which is typically around 6 percent of their home’s sale price, and if you use the Move First program, you also pay a 1.9 percent program fee. Other traditional home sale expenses, like closing costs, also apply.
• Locations served: Six metro areas: Austin, Dallas–Fort Worth, Houston and San Antonio, Texas, plus Denver and Atlanta

Knock

Similarly, Knock also allows you to buy a new home and then sell your old one. It’s not actually paying cash, though; the company underwrites a new loan for you. Known as a Knock Bridge Loan, the service allows you to get a loan before you sell your home that can be used toward part of a down payment, for closing costs, for moving expenses or to help with non-structural renovations.

• Fees: Sellers pay a 2.25 percent fee of their home’s estimated list price, plus closing costs
• Locations served: 18 states, plus the District of Columbia

How do cash homebuyers work?

Each of these businesses has its own guidelines and regulations, but their processes tend to be fairly similar. Once you’ve decided that you’d like to sell your home for cash, you reach out to the company of your choice. After a quick inspection of your property, which may be entirely online or require an in-person visit, you’ll receive a cash offer quickly (typically within a day or two). If you accept, there will be paperwork to sign — read it carefully! — and potentially fees to pay. Then you can begin the closing process and receive payment, generally within a couple of weeks. It all goes much faster than a traditional, agent-assisted sale, but there’s a trade-off: You will likely make less money than you would on the traditional market.

Alternatives

If you’re not sure whether a cash homebuyer is right for you, there are several other ways to sell your home.

• Sell with an agent: Companies that buy houses for cash aren’t the best fit for everyone. If you’re hoping to get the highest possible price for your property, it’s better to work with an experienced real estate agent and go through the traditional sale process. It will almost certainly take longer, but you’ll benefit from an agent’s professional expertise and earn more in profits.
• Sell on your own: You could also sell your home on your own, without the help of a Realtor. “For sale by owner” listings are more time-consuming than cash or agent-assisted sales, since you’re doing all the work yourself. That includes everything from pricing the property to preparing it for viewings to marketing it to gathering and negotiating offers.
• Rent your home: Finally, if you don’t need the lump sum of cash that a sale would bring, consider renting your home out instead of selling it. Being a landlord can be a lot of work, but in exchange you’ll get a steady stream of rental income every month.

Should you sell your house for cash?

It all depends on your priorities. A cash sale will move faster, but a traditional sale will fetch a higher price for your home. Ultimately, the answer comes down to two key factors: what kind of condition your house is in, and how long you can afford to wait. If your house needs serious repairs that you cannot afford to (or just don’t want to) take on, or if you need the money ASAP, companies that pay cash for houses are a good option. If the house is in good shape and you have time to spare, you are likely to make more money in a traditional sale, with a knowledgeable real estate agent on your side.

If you want to explore your options, you can always see what some cash buyers are willing to offer to get a sense of what you could earn in a speedier deal. Then, talk with a local real estate agent to get a professional opinion on what they realistically believe your home could command on the open market. Keep in mind, though, that while you’re not obligated to accept a cash offer, it may come with an expiration date.

FAQs

• Do homebuying companies make fair offers?

  That depends on your definition of “fair.” These companies operate very quickly — so, if you believe in the adage that time is money, perhaps a speedy offer will feel more than fair. However, these companies need to make a profit, too, so you’ll almost certainly receive a lower offer from them than you would in a traditional open-market sale.
  

• Are companies that buy houses for cash legit?

  By and large, yes. There are plenty of well-established companies that specialize in buying houses for cash; it’s a common practice in real estate. However, scams are certainly out there, so it never hurts to investigate. Research the company’s profile with the Better Business Bureau, look for online reviews and always read a contract carefully before signing — you want to make sure you understand all the fine print.
  

• How fast can I sell my house to a company for cash?

  Very fast. Some companies will make you an offer within one day, or sometimes within minutes, and some guarantee to close on the home within one week.