Whether it’s flipping a home with bathrooms from the ’70s or scouting out a hot location for their next single-family rental, house buying companies purchase homes for real estate investment purposes. A seller who needs to relocate all of a sudden or whose home requires serious TLC may be weighing the possibility of contacting a house buying company. Because these companies typically buy homes “as is” and have the reserves to pay all-cash, they can help sellers move quickly and with a lot less hassle than they’d likely experience when listing. This guide covers how the process tends to work with these operations — and what to expect. While selling to a We Buy Houses company offers a number of conveniences, house-buying businesses typically pay less than market value for the homes they purchase, and sometimes significantly so. Here we take a look at the different types of house-buying companies out there, what it’s like to sell to a company that buys homes for cash, and the pros and cons. You can also review a list of some of the top house buying companies nationwide and details about each, including where they operate and how they’ve been reviewed by past customers.
Some sellers may opt to work with a company that buys houses because their home needs a lot of work before they could consider listing it. Maybe the roof should be replaced or repaired, the windows are in rough shape, or the entire place is a cosmetic eyesore. Not all sellers have the time or budget for hefty renovations necessary for a proper listing, and that’s OK. In addition, some sellers hate the idea of repeated showings. It raises their blood pressure and they want an easy, fast solution. While it’s always a good idea to keep an eye out for scams (or anything that just doesn’t seem right) most house buying companies are legit. You can rest assured that this business model has been around awhile. People have been flipping homes in the way we think about it today since the ’80s and well-known real estate investing operations like We Buy Houses and We Buy Ugly Houses have existed since the late ’80s to mid-’90s. iBuyer companies such as Opendoor and Offerpad are one newer type of house buying operation, having emerged in the mid-2010s. These high-tech businesses operate a little differently than other cash-for-homes companies. For example, iBuyers lean heavily on digital tools to make offers and provide a mostly online selling experience. They are another legitimate option for selling your home in the markets where they make purchases. However, house-buying companies are generally going to offer less than market value for your home, even if they are 100% legitimate. Different companies offer different amounts for homes, but the price discount can be steep. These companies can also provide a quick and flexible closing, reduce or eliminate the need for repairs, and in many cases will cover all of a seller’s closing costs. So it’s all about weighing the trade-offs and determining what’s best for your situation. While the process varies from business to business, the steps to selling your home to a house buying company typically goes something like this: Not all house buying companies are the same. These entities can range in size, areas served, and business goals. Here’s an overview of the main categories of house-buying companies you’re likely to encounter in the market today. House flippers are real estate investors that purchase properties at a discount with the intention of remodeling to add value, then resell those properties quickly for a profit. House flippers look for specific improvements to boost equity, such as cosmetic updates, mechanical repairs, an addition, or a change to the layout. Doug Van Soest, who owns a house flipping business in Southern California, purchases an average of 40 to 50 homes per year and says he typically aims for at least a 10% return on his investment. Buy-and-hold companies purchase houses with the intention of renting them to tenants for a profit. “Similar to flippers, they will look to acquire properties that offer enough potential equity or cash flow that they are able to make an acceptable return on investment for their owners or stakeholders,” explains Owen Dashner, owner of Red Ladder Property Solutions in Omaha, Nebraska. Most of these types of investors use the “BRRRR” model, which stands for “Buy, Rehab, Rent, Refinance, Repeat.” They tend to focus on multi-family buildings and other types of properties desirable to renters. An iBuyer, also known as an instant buyer, is a business that uses real estate market data and technology to make immediate offers on houses, sight-unseen, after being contacted by an owner. Most iBuyers focus on buying houses that don’t need a lot of work and charge a service fee to sellers. Data from zavvie shows that service fees for iBuyers in late 2021 were 5.8%, which is “not out of line” with the typical 5%-6% real estate agent’s commission. They also may request a credit called a “concession” to cover repair expenses, which in 2021 was an average of 3.1%. Many people need to sell their existing home in order to have enough funds to cover the purchase of their new home. Some house buying companies offer or specialize in what are known as trade-in programs to make this a smoother process. Generally trade-in companies will offer to buy your current home, freeing up your funds to buy a new home and removing the need for a home sale contingency. Some home-buying companies focus on purchasing houses in specific regions, states, and cities. These companies may have a national or multi-state presence under a unified brand bolstered by local offices run by associates affiliated with the umbrella company. Other local investors may be even more “mom-and-pop” in that they have small teams and maybe only work with a handful of homes per year. Below we’ve compiled a list of some of the leading companies that purchase homes for cash across the nation and information about each.Disclaimer: The specifics of each house buying program listed here can frequently change. Please visit the company’s website for the most up-to-date information on each individual company’s process, locations, and more. Website
866-200-6475 Part of HomeVestors of America, We Buy Ugly Houses is the largest professional house buying franchise in the U.S. Since its launch in 1996, the company has purchased over 100,000 homes. It specializes in buying distressed properties for cash, enabling sellers in tricky situations to close in as few as three weeks. We Buy Ugly Houses is known for its bright yellow billboards and branding featuring caveman Ug Lee. Review our overview on the operations and history of We Buy Ugly Houses for a more in-depth look at the company. Locations: Available in 45 states through 800 independently owned and operated franchisees. See the full list of locations. Fees: Sellers pay no closing costs; We Buy Ugly Houses covers them. Reviews: Headquartered in Dallas, Texas, We Buy Ugly Houses holds an “A+” BBB rating. 2021 reviews from customers speak to the company’s high level of professionalism and describe the service as “honest,” “trustworthy,” and “fair” with “no games.” They express being relieved at not having to show the home and how easy the process was overall. However, reviews of individual franchises vary so be sure to do your own research on your local We Buy Ugly Houses franchise. Website
(844) 488-8455 Simple Sale, a solution from HomeLight, is an online platform where sellers across the country can request a cash offer for their home. Simple Sale has a network of cash buyers on its platform, and partner investors have a wide range of investment strategies, including fix-and-flip and buy-and-hold. This enables Simple Sale to provide cash offers for a wide array of properties, even those that need some or a lot of work. With Simple Sale, you can get an all-cash offer in as few as 48 hours and sell your home in as little as 10 days, skipping the months it takes to sell the traditional way. Locations: Nationwide Fees: No prep costs, no agent commissions, and no fees charged by HomeLight. Individual investor fees may vary. Reviews: Simple Sale is a HomeLight platform, and HomeLight has 4.6 stars on Google based on 355 user reviews. Below you can hear about how Baohan Wu, a seller who used Simple Sale to sell his high-rise apartment, closed within three and a half weeks and what he thought of the process overall. Website
(877) 932-8946 Since 1997, We Buy Houses has been helping homeowners sell homes in any condition fast and for cash. Not to be confused with We Buy Ugly Houses, the We Buy Houses brand is not a franchise business. It is a marketing program provided to professional real estate investors that already have “established processes for buying and selling real estate,” according to an informational page on the company’s website. The company says that it is trusted by over 1 million homeowners. Keep in mind that “We Buy Houses” is no longer a trademarked term; so not every company you see using “We Buy Houses” in their name or marketing is going to be associated with the WeBuyHouses.com brand we’re describing here. Make sure you’re aware of who you’re working with and don’t assume “We Buy Houses” to be the only indicator of a company’s legitimacy. Locations: The company has local offices throughout the country and buys homes for cash throughout the U.S. You can enter your ZIP code on the website to see information about your local We Buy Houses office as well as the name and contact information of the main local representative. Fees: Sellers pay no closing costs; We Buy Houses covers them. Reviews: WeBuyHouses.com has been BBB accredited since August 2020 and has an A+ rating. Customer reviews for We Buy Houses vary among local offices, so it’s important to do your own research and see what people have to say about working with the location nearest you. You can find these reviews through the BBB website or you may check to see if your local WeBuyHouses.com office has a Facebook page with reviews as well. Website
877-804-5252 Established in 2003, Express Homebuyers makes all-cash offers for homes in many states throughout the nation with an emphasis on Washington, D.C., Baltimore, and Virginia. The company prides itself on having swift operations — it says it will make you an offer over the phone within seven minutes and buy your home within seven days, according to the company’s “About Us” page. If a seller accepts an offer from Express Homebuyers and the title is cleared (a process that can often be completed in as few as 24 hours with this company), the operation will forward a cash advance of $2,500 on the selling price, which is nice for sellers who need the extra cash right away. Locations: Based in Springfield, Virginia, Express Homebuyers identifies 28 states as “top states” where it operates. The company’s “About Us” page emphasizes being active in the Washington, D.C., metro area as well as the Virginia and Baltimore regions. Fees: No closing costs, Express Homebuyers covers them. Reviews: Express Homebuyers has been BBB accredited since 2004 and has an A+ BBB rating. Customer reviews are largely positive with an overall rating of 4.82 out of 5 stars on BBB. Reviewers speak to a “quick and efficient” selling process navigated with the help of professional company representatives. They also praise the company’s level of flexibility and several mention being satisfied with the “fair price” they arrive at when working with Express Homebuyers. Website866-953-2042 Founded in 2018, HomeGo provides cash offers to homeowners in three easy steps. First, a representative of the company will conduct a 30-minute home walkthrough. Next, HomeGo says it will provide a firm cash offer on the spot. HomeGo then can help sellers close in as little as seven days and offer them the flexibility to move when they want. HomeGo may be a younger company than some others on the list, but it is highly active. HomeGo’s website states that the company buys a home every 20 minutes. Locations: HomeGo is a national company with over 30 offices from coast to coast. View a full list of the company’s current locations. Fees: No closing costs, HomeGo covers them. Reviews: HomeGo has an A+ rating with the BBB and has received an average 4.12 out of 5 stays. Customer reviews note that HomeGo representatives were “courteous, professional, and available throughout the process.” They say price negotiations were fair, and that the contract terms were simple to understand. A few reviews mention that the offer price they received from HomeGo was fair or higher than expected. Website
301-970-9875 Founded in 2012, MarketPro Homebuyers provides solutions to sellers with a focus on the Washington, D.C., Baltimore, and Northern Virginia metro areas. The company says it differentiates from other house buying companies by providing a “straightforward, honest, and personalized” experience to each customer. MarketPro Homebuyers buys homes in as-is condition, sends same-day offers, and can accommodate a flexible closing. Locations: MarketPro Homebuyers serves over 30 cities in Northern Virginia, Maryland, Pennsylvania, and Washington, D.C. Fees: No closing costs; MarketPro Homebuyers covers them. Reviews: Based in Rockville, Maryland, MarketPro Homebuyers has an “A+” BBB rating and an average 4.6-star rating out of more than 75 reviews. One customer describes an “almost seamless process” that took “so little time, I was amazed.” Others express how the company exceeded expectations and consider MarketPro to be “top notch.” Website
800-214-4426 Sundae Real Estate is a marketplace that connects homeowners selling distressed properties with investors who want to buy them. Sellers connect with an advisor over the phone or fill out an online form. The next step is a brief home visit followed by listing your home on the Sundae investor marketplace. Sundae provides sellers with their highest offers to review four business days after the home inspection and disclosure process. Locations: Based in San Francisco, Sundae serves nearly two dozen metro areas across the U.S., including several locations in California, Texas, Florida; as well as Seattle, Las Vegas, and Salt Lake City. The company is expanding operations so check its location page for an up to date list. Fees: None; Sundae says sellers can sell as-is and pay zero fees. Reviews: Sundae Real Estate holds an “A+” BBB rating and an average 4.13 out of 5 star rating out based on over 38 reviews. Customers describe the representatives at Sundae as friendly, helpful, and professional. Sellers report being happy to have sold off-market and feel like they still got a fair deal. They also emphasize the convenience of the experience with Sundae. Having first emerged in the mid-2010s, iBuyers are a newer type of house buying company. These companies use algorithmic tools to price homes and typically purchase homes in good condition. They are known for providing a convenient way to sell your home either entirely or mostly online. For more information on iBuyers, we recommend HomeLight’s guide to the top 7 iBuyer companies to know in 2022. Website
(888) 352-7075 Launched in 2014, Opendoor is considered the nation’s pioneering iBuying platform. It buys homes directly from sellers and the company’s online platform makes it easy to receive a no-obligation offer in minutes. According to the company’s FAQ page, Opendoor typically buys homes in the range of $100,000- $600,000, but in some cases will go up to $1.4 million depending on the market. Opendoor buys homes of varying condition, but criteria like a short sale, unpermitted work, or dated materials may impact whether the company is willing and able to purchase a home. Locations: Opendoor serves 45 metropolitan areas nationwide. Fees: Opendoor charges an estimated 5% service fee and estimates closing costs of 1%. But as an iBuyer, Opendoor typically pays closer to market value for homes than traditional house flippers. Reviews: Headquartered in Tempe, Arizona, Opendoor holds an A+ BBB rating and has accumulated more than 315 customer reviews with an average 3.4-star rating. Despite some mixed reviews, some of the negative comments are more geared at purchasing a home with Opendoor rather than selling one. Sellers happy with their experience discuss the general strength of Opendoor’s offers compared to some other companies. One comments on selling their current home to Opendoor and having “money in the bank by dinner.” Opendoor’s customer service team is also actively engaged with customers providing feedback. Website
844-388-4539 Launched in 2015, Offerpad is one of the largest iBuyers by transaction volume, alongside Opendoor and Zillow. It collects information about a property with a five-minute questionnaire for sellers to fill out, according to the company website. Sellers also have the option to take Offerpad on a 15-minute virtual walkthrough of the home to inform the company’s offer. Offerpad provides no-obligation cash offers to sellers in 24 hours. Locations: As of this writing, Offerpad is buying homes in the metropolitan areas of 16 states, including Alabama, Arizona, California, Colorado, Florida, Georgia, Illinois, Indiana, Kansas, Missouri, Nevada, North Carolina, Ohio, South Carolina, Tennessee, and Texas. Fees: Offerpad charges an estimated 5% service fee and estimates closing costs of 1%. But as an iBuyer, Offerpad typically pays closer to market value for homes than traditional house flippers. Reviews: Out of over 12,500 reviews collected on review aggregator sitejabber, Offerpad has an average rating of 4.66 out of 5 stars. Reviewers describe the process of working with Offerpad as “quick and easy” and compliment the company’s technology as being user friendly. Customers also describe Offerpad representatives as patient in answering any questions. Website(951) 229-0511 Real estate brokerage Redfin, which lists homes for a 1.5% commission fee, launched its iBuyer program RedfinNow in 2017. Sellers can request an offer online. Redfin will assess the home and provide an offer in just a few days. If a seller accepts the offer, RedfinNow arranges for a home inspection; the seller chooses their own closing date within a certain period. If the sale closes before you vacate, you can rent your home back for 29 to 60 days, depending on the market, according to the company website. Locations: According to the company’s Zendesk help page, RedfinNow is available in select locations for eligible homes across 11 states, including Arizona, California, Colorado, Maryland, Massachusetts, Nevada, Oregon, Texas, Virginia, Washington state, and Washington, D.C. Fees: Between 5% and 13% of the sale price. Reviews: Parent company Redfin has an average 3.9 out of 5 stars on ConsumerAffairs. The RedfinNow homepage also states that the company has made 11,000 cash offers and counting. Their site also includes a carousel of client reviews describing the process as having “no hassles” and removing a lot of the worry from the transaction. Trade-in companies aim to solve the tricky process of buying and selling a house at the same time. Typically, these companies enable sellers to unlock equity from their home to put toward their next residence. In doing so, sellers are generally able remove the home sale contingency from their offer to better compete in the market. Website844-488-8455 HomeLight Trade-In allows you to buy a new home before selling your old one. The company works with your real estate agent to make an offer on your current home, freeing you up to bid on the home of your dreams with no lending or home sale contingency. This means you’re more likely to close and can do so on your timeline. When you have an offer accepted on a new home, HomeLight then buys your current home at the purchase price so you receive the cash to close. Then HomeLight completes the process by working with your agent to list your previous home. If the home sells for more than HomeLight paid for it, the company gives you the additional proceeds minus selling costs and program fees. Locations: HomeLight Trade-In is currently available in California, Colorado, Florida, Arizona, and Texas. Sign up here to be notified when HomeLight Trade-In launches in your area. Fees: Anywhere from 1% to 3% for the first 30 days HomeLight owns the home, then prorated daily to 0.5%-1% depending on your market. Additional costs may apply based on local tax laws. Reviews: Reviews of HomeLight Trade-In emphasize the platform’s ability to help everyday real estate buyers compete in a cutthroat housing market. One real estate agent notes that because the program enables clients to remove the home sale contingency from their offers, he was able to negotiate a “great price” on his client’s new home — a savings of approximately $100,000, the agent estimates. Below is a video testimonial of how HomeLight’s buy before you sell program enabled two teachers to upsize. You can hear about more client experiences of using HomeLight Trade-In on the HomeLight blog. Website
855-935-9466 Founded in 2016, FlyHomes has to date helped consumers buy and sell $3.7 billion worth of real estate, according to the company’s About Us page. Among other products, FlyHomes offers a “buy now, sell later” trade-in program. It works by pre-underwriting sellers for a new home, then providing them with a short-term loan to make a competitive offer. Next, FlyHomes helps sellers list, stage, and show their previous home to attract a top-dollar offer. Once the seller’s previous home is sold, the FlyHomes mortgage team helps the sellers get set up with a long-term loan for their new residence. Locations: FlyHomes is currently available in six states. Areas served included Seattle; Portland, Oregon; the San Francisco Bay area, Southern California; Denver and Boulder, Colorado; as well as the Texas cities of Austin, Houston, and Dallas. Fees: Fees include the usual costs associated with buying and selling a home, such as the loan original fee, appraisal, title and escrow costs, broker commission, and transfer taxes, according to Flyhomes’ FAQ page. Holding costs typically amounting to $100-$200 a day also apply to customers using a Flyhomes Cash Offer. Reviews: FlyHomes is a BBB accredited business with an A+ rating. The company also has an average 5-star rating based on 271 Yelp reviews. Clients report being satisfied with the process of FlyHomes’ buy before you sell program and share that the FlyHomes agents who guided them through each step were both helpful and professional throughout the journey. Customers also appreciate the ability to save on moving costs with their home trade-in. Website844-819-1373 Orchard’s Move First program helps sellers make stronger offers by allowing them to unlock up to 90% of their home value to put toward their next home, according to the company’s website. This enables homeowners to buy their new home before they sell. Orchard then handles cleaning, listing, and showing a seller’s previous home and manages updates to help the home sell for maximum value through its Concierge program. Locations: Orchard currently operates in 11 markets, including Atlanta; Austin, TX; Charlotte, NC; Dallas-Fort Worth; Denver and Colorado Springs, Colorado; Houston, Montgomery County; MD; Northern Virginia; Portland, OR; Raleigh-Durham, NC; and San Antonio, TX. Fees: About 5%-6% of your home sale price is the typical fee charged by Orchard, according to information listed on the website, similar to the amount paid when working with a traditional agent. Reviews: On customer review website Trustpilot, Orchard has received an average 4.6 out of 5 stars. Customers express that they experienced great communication from the Orchard team and a clear cut process. Orchard representatives are described as “knowledgeable, professional, and passionate” about helping clients. Still not sure if you’re a good candidate for working with a home-buying company? Here’s a quick comparison of some of the most notable benefits and drawbacks of this arrangement. We’ve already covered a lot of ground in our exploration of house-buying companies and the cash-buying real estate landscape. However, you may still have some lingering questions, which we aim to address below. Sometimes. In a lot of cases, a lack of time, money, and expertise for significant repairs is what causes sellers to work with a house-buying company rather than listing. Others would prefer to avoid repeatedly showing the home. However, a house buying company is often not the right choice if your primary selling priority is to maximize the sale price. How you choose to sell your home is always a personal decision, but here are a few scenarios that could make working with a house-buying company seem more appealing. Your house may be a better match for certain house-buying companies than others. iBuyers are a sound option for those selling properties in good condition at a certain price point; rental investors are better suited to those with rentable properties in high-yield areas; and house flippers typically seek distressed properties. If you’re unsure where to start, consider requesting an offer through Simple Sale, which provides all-cash offers for a variety of property types in locations across the country. Selling to a house-buying company isn’t the only route to a quick and easy transaction. A top-rated real estate agent can help you take steps to attract a quick offer while addressing any obstacles to settlement. A knowledgeable agent who understands your goals can guide you with pricing, marketing, and connections to local investors or qualified individual buyers who are eager to buy a home like yours and close the deal fast. Most We Buy Houses for Cash companies are legit, and you can rest assured that this business model has been around for decades. However, it’s always a good idea to keep an eye out for scams, or anything that just doesn’t seem right. Always thoroughly research companies ahead of time. Verify all professional licenses, check customer reviews, get a referral if possible, and vet the company with online reviews. House buying companies can typically close on homes in as few as seven days to a couple of weeks. But they can also usually provide a longer closing to sellers who need more time to pack and move as well. Sellers should keep in mind that factors like title issues, inheritance complications, and HOA rules can cause settlement delays, even when working with a company that buys houses for cash. It’s common for house buying companies to pick up all the closing expenses associated with a sale, including escrow and title costs. House buying companies are often willing to help cover a seller’s closing costs knowing that someone facing financial hardship doesn’t always have the funds to do so. Different house buying companies will offer varying amounts for homes depending the types of homes they purchase and business specifics. Over the past 12 years, most cash buyers have paid an average 12% less than financed buyers, according to one research paper. Many house buying companies follow the 70% rule, meaning they’ll offer you 70% of your home’s after-repair value, minus repair costs. iBuyers tend to look for homes in better condition and offer much closer to market value, typically in the 90% range — and sometimes more, particularly in a hot real estate market. Though one thing to note is that major iBuyers like Opendoor, Offerpad, and Redfin usually charge sizable fees for their services, often around 5%. In today’s sizzling seller’s market, it only takes an average of 19 days for houses to get an offer. While that’s fast, sellers still need to consider another 52 days for mortgage processing and approval if they’re working with a financed buyer. Selling to a house buying company by contrast typically allows for a much faster process with a lot less hassle, though you aren’t likely to get as much for your home. If you’re intrigued by the idea that a house-buying company could offer to buy your house tomorrow but are a little skeptical about whether you’d be happy with the outcome, we’d be happy to connect you with a top real estate agent in your area for further advice. Alternatively, get started with your home sale today by requesting a cash offer through Simple Sale.Why sell to a house buying company?
Are house buying companies legit?
How do companies that buy houses work?
How do house-buying companies determine what to offer? “Most house-buying companies will do a comparative market analysis similar to a Realtor to determine what your home can be resold for after repair,” says Robert Taylor, an experienced rehabber in Sacramento. “They’ll then deduct for commissions, resale costs, and repairs, plus a small profit margin.”
What are the different types of house-buying companies?
1. House flippers
2. Buy-and-hold companies
3. iBuyers
4. Trade-in companies
5. Local investors
13 of the Top House Buying Companies of 2022
Homevestors / We Buy Ugly Houses
Simple Sale (a HomeLight platform)
We Buy Houses
Express Homebuyers
HomeGo
MarketPro Homebuyers
Sundae Real Estate
iBuyer companies
Opendoor
Offerpad
RedfinNow
Trade-in companies
HomeLight Trade-In
Flyhomes
Orchard Move First
Pros and cons of using a house-buying company
Pros:
Cons
FAQs about companies that buy houses for cash
1. Is a home-buying company the right choice?
2. What are the main reasons for selling to a home-buying company?
3. Which house-buying site is best?
4. What are the best alternatives to house buying companies?
5. Are house buying companies legit?
6. How long does it take to sell a house for cash?
7. What closing costs does a cash buyer cover?
Final thoughts on house-buying companies
