Organizations that buy houses for cash can help homeowners sell their homes without much hassle. They make instant offers and sellers can choose the closing date. There are two major types of cash buyer firms: we buy houses for cash companies and iBuyers. The former buys homes at a huge discount compared to their market value. They normally only buy houses that are in bad condition.
The latter make competitive offers that are close to if not at par with your home’s market value. However, their services are available only in select metro cities and their purchase criteria are also very strict.
We Buy Houses for cash companies can be a decent option for sellers who are facing foreclosure or have distressed property. On the other hand, iBuyers are great for sellers who have a home in good condition and want a quick and convenient sale.
Below is a list of top companies that buy houses for cash.
1. We Buy Ugly Houses
We Buy Ugly Houses is among the biggest and the most well-established We Buy Houses firms in the US, with more than 800 offices.
It has a good name and decent brand recognition. We Buy Ugly Houses reviews suggest that their customer service is excellent and they buy houses without asking any questions. This is a huge relief for homeowners who are dealing with some issues.
While some We Buy Ugly Houses reviews say that their payouts are pretty decent, others mention that it usually does not pay more than 70% of the after-repair value of their homes. This means you can potentially leave a lot on the table.
The company offers a flexible closing date but the offer terms are a bit inflexible. This cash buyer is good for homeowners seeking to close quickly on their distressed property without expecting big returns.
2. We Buy Houses
We Buy Houses reviews suggest that working with a company is likely to be more positive than working with a private real estate investor.
This is because We Buy Houses vets all its investors and provides them an exclusive license to function in a particular territory. This way, investors who are licensed have an incentive of working harder to maintain their advantage.
While the company does not have a say in how much cash the investors offer but it can rescind its license if its work is not as per the ethical standards.
Sellers can close in as short as seven days. The price you will get is lower than what you may get on the open market, but you have the flexibility of avoiding costly repairs and closing on your time.
We Buy Houses reviews are mostly positive, but service might differ based on location.
3. I Buy Houses
I Buy Houses matches homeowners with a bunch of independent real estate investors. But unlike We Buy Houses, this company does not vet its investors. Therefore, it is difficult to know the level of service one will receive and the negotiation part will be totally up to you. Also, there is no guarantee that someone will even connect with you after you submit your details.
The main advantage of this company is its pan-USA network of real estate investors and the easy online submission form.
Opendoor is touted to be US’s first and largest iBuyer. Set up in 2014, the company is said to have pioneered the iBuying model i.e. instant cash for houses. The company uses cutting-edge technology and market data to arrive at the final price of the home.
A typical offer by Opendoor is 90% to 100% of the property’s fair market value. However, its final offer is computed after taking into account the closing costs, which typically range from 6% to 13%.
There is also a service fee, which is typically 5% of the home sale price. Opendoor offers flexible closing dates, up to 45 days. But, being an iBuyer it buys homes only in desirable neighborhoods. It prefers properties that are visually appealing and require minimum repair.
Set up in 2017, Offerpad is another iBuyer that purchases houses for cash. It has a good reputation for its quick closing schedule. You can close in as short as seven days.
The company has a strong team of domain specialists and a treasure trove of housing market data. Its patented assessment tool produces an initial offer price, but the final one is arrived at only after deducting the closing costs. To know more about them check Offerpad reviews.
Offerpad’s typical offer is 80% to 100% of the fair market value. The company only covers 22 markets and being an iBuyer, it purchases only those homes that are in great shape.
Companies that purchase houses for cash are worth considering if selling quickly is your main priority and you can compromise with the money you make from the sale. However, it is highly recommended that before finalizing a cash buyer, you explore multiple offers in order to compare your options and make sure that you get a good deal.