13 Companies that Buy Houses for Cash (and Alternatives) - Orchard (2024)

Companies that buy houses for cash have been popularized by their marketing strategies of stickering signs and unsolicited calls and texts to buy your house. While these companies have been around for decades, the seller’s market of the past few years has created even more demand for their services.

Though their marketing strategies may be familiar, the companies themselves — who they are, the services they offer, and the pros and cons of working with them — are less widely known. There are two classes of these companies that buy houses for cash: the traditional kind and iBuyers. Both are legitimate companies that buy homes in any condition, but utilize different tools to do so.

Are companies that buy houses for cash legit?

In the age of digital marketing, cold calling and posting signs might seem like a red flag to some would-be customers suspicious of getting scammed. However, many of these companies are legitimate businesses relying on old-school sales tactics.

Companies that buy houses for cash offer homeowners a quick and simple way to sell their home without the hassle of traditional real estate transactions (hiring an agent, listing the home on the market). They make instant, or near-instant, cash offers on houses in almost any condition and will help you close quickly. However, these companies offer well below market value for homes. (If you're sure you want to sell your home for cash to a company, Orchard can help you source and compare offers from iBuyers and smaller investors. If you're on the fence, we can also help you sell on the market and give you a guaranteed back-up offer, so you have the best of both worlds.)

We buy houses companies

We buy houses companies offer homeowners looking to sell their house fast an easy solution: sell your house as-is for a cash offer. They buy homes in good to poor condition, and in return, they “flip” the house and sell it for a profit. Their services aren’t available everywhere, but they operate in over 100 markets nationwide.

The process is generally the same: Homeowners fill out a form, after which a representative will contact them with an offer — usually within 24 to 48 hours. Homeowners aren’t obligated to accept the offer, but if they do, they can expect to close fast.

However, these companies’ cash offers can be as low as 50% of the fair market value of a home — a lot to lose for the convenience of the sale.

We Buy Houses

When you sell your house to We Buy Houses, they’ll schedule an on site visit to view your home. Within a day or two of the visit, you’ll receive a cash offer for your home. There’s no obligation to accept the offer, and if you do, We Buy Houses will accept your house as-is, eliminating the need for any repairs or renovations. The deal will typically close in one to two weeks, which means you’ll have your money within that time frame.

An added benefit is that We Buy Houses works with a variety of homes — they’ll buy foreclosures, tenant-occupied homes, and they’ll even buy your home if you’re mortgage is underwater. This can be a game changing solution for homeowners in a tight spot and need cash quickly, but they may end up sacrificing some profit for this convenience. As with all companies that buy houses for cash, We Buy Houses typically offer under market value in order to turn a profit once they fix up and sell the property.

HomeVestors (We buy ugly houses)

HomeVestors, founded in 1996, has a similar process: They’ll schedule an in-person visit to your home, examine your property, and get you a cash offer. If you accept the offer, you can expect to close within three weeks (or longer if you need the extra time). You will need to pay some closing costs but you’ll save money on a Realtor commission — which makes up a large part of the seller’s closing costs.

HomeVestors buys multi-tenant, commercial properties, and single-family homes in any condition. Again, this can be a great solution for homeowners who need cash fast but homeowners can’t expect to get the most money for their home from HomeVestors. As real estate investors, they will only pay between 50% to 70% of market value for your home.

iBuyHouses.com

Unlike the other companies that buy houses for cash, iBuyHouses.com simply connects investors with homeowners who want to sell their home fast — the company isn’t involved in the transaction.

iBuyHouses.com claims to get sellers offers within hours in some instances and helps facilitate a closing date of your choice. They will even help connect you with investors who will purchase multi-family, mobile and manufactured, or foreclosed homes, and they’ll work with homeowners who are underwater on their mortgages, too.

Investors aren’t vetted by iBuyHouses.com, so it’s important to carefully research any offers you receive before moving forward with them. Additionally, investors are likely to offer well below market value to guarantee a profit for themself.

Other companies

Many companies that buy houses for cash operate nationally. However, there are also more local options that operate in select states and cities like the following:

  • Express Homebuyers
  • New Western Acquisitions
  • Sundae Real estate
  • Net Worth Realty
  • Fast Made Offers
  • MarketPro HomeBuyers

iBuyers that buy houses for cash

iBuyers, or “instant buyers,” are a class of real estate tech companies that use technology to streamline the process of buying homes for cash and make an offer on a home instantly. The services of iBuyers vary from company to company but many will offer sellers flexibility for the move-out date and the ability to sell their home as-is.

iBuyers generally offer closer to fair market value of a home, as compared to We Buy Houses companies. However, it’s unlikely that an iBuyer offer will net a home seller as much as they would have made by listing their home on the market.

Opendoor

Opendoor is a fee-based iBuyer founded in 2014. They offer a variety of services like buying and selling your home directly to Opendoor, as well as home financing. Opendoor operates in 48 metro areas across the country.

Sellers who work with Opendoor start with a free virtual assessment of the home, after which time Opendoor makes an offer on the house. Sellers have the choice of selling instantly for cash, or choosing to list on the open market. In exchange, Opendoor collects a service charge, averaging around 5% to 6% (but it can sometimes be as high as 14%, according to the company) of the purchase price of the home.

Related: Opendoor reviews: What to know

Offerpad

Offerpad buys homes to renovate and sell for a profit. The company buys houses for cash in two ways: the first service is Offerpad Express which gives sellers the standard cash offer, the second is Offerpad Flex, which allows sellers to list their home on the market while giving them the security of a back-up cash offer if the house doesn’t sell on market.

Offerpad is a great solution for sellers who need to sell fast. After requesting an offer, homeowners can expect to receive an initial cash offer within 24 hours. However, Offerpad requires sellers to sign a contract before knowing their final offer amount. This can put sellers at risk of accepting a cash offer for thousands of dollars less than their initial offer.

Offerpad has been around since 2015 and operates in metro areas in Alabama, Arizona, Colorado, Florida, Georgia, Indiana, Nevada, North Carolina, Texas, Tennessee.

Read more about Offerpad here

Redfin

Redfin is a discount real estate brokerage serving over 100 markets in the U.S. and Canada. Their iBuyer offshoot, RedfinNow, offers homeowners a convenient way to sell their home fast for cash. Their service fee ranges from 5% to 13% of the sale price of the home and they have a closing date window of 10 to 30 days.

Here's what to know about selling with Redfin

HomeLight Simple Sale

HomeLight is another real estate technology company based in Scottsdale, Arizona. They match real estate agents with homebuyers and sellers and have an iBuyer service called Simple Sale.

Simple Sale matches sellers with cash buyers or home flipper investors. The unique benefit of this service is that it helps sellers looking to sell fast get multiple offers on their home, as opposed to other companies that buy houses for cash which only give one offer. Many of these investors will buy homes as-is; however, sellers risk accepting a lowball offer if they don’t understand how much their home is worth.

Sellers who use Simple Sale will also have to wait longer than other iBuyer offers — typically a full week, as compared to an instant offer of some of their competitors. They will also work with a shortened closing window of 10 to 30 days, which can be less flexible than many sellers need.

Read HomeLight reviews here

Alternatives to companies that buy houses for cash

A new class of real estate tech companies have risen to prominence in recent years classified as power buyers. Their main difference from iBuyers and companies that buy homes for cash is that they focus their services on helping home sellers get the most money for their home (as opposed to slightly under market value) and help homebuyers get an edge in a competitive market.

Flyhomes

Homebuyers who need to buy a house while selling their current one have few solutions. Flyhomes is a real estate brokerage and mortgage broker trying to change that.

When you work with Flyhomes, Flyhomes will buy your new house for you, allowing you to move out of your old home and into your new one immediately. While you live there and wait for your old home to sell, Flyhomes charges a daily rental fee. They will then help prep and list your home to sell on the market, or Flyhomes will buy your home if it doesn’t sell within 90 days. Once your home sells, you can use those proceeds to buy your home from Flyhomes and settle up any additional expenses.

Flyhomes was founded in 2016 and is based in Seattle.

Read reviews of Fly home here

Knock

The mortgage lender Knock offers yet another option for homeowners who need to buy and sell at the same time. They offer a program called Home Swap where homeowners can get approval for a new home loan before their old one sells — something that has traditionally been challenging for homebuyers with an existing home loan because the remaining mortgage balance has counted against them as debt — as well as bridge financing.

They operate in 15 states across the U.S. and have been in business since 2015.

Read Knock reviews here

Orchard

Here at Orchard, we’re focused on radically simplifying the homebuying and selling process, particularly when you need to do both. We do this in a few ways:

  • Buy before you sell: We’ll unlock the equity in your current home to turn you into a non-contingent cash buyer for your next home.
  • Move first and skip the showings: Don’t rush to find your dream home. Take your time finding and buying your new home. After you’re moved in, we’ll help you prep and list your home for top dollar. We’ll even handle the showings for your old home so you can focus on settling into your new one.
  • Guarantee home sale: When you work with Orchard, you won’t have to worry about your house sitting on the market. We’ll guarantee your home sale so there’s one less thing for you to think about.
  • Compare offers from iBuyers: For homeowners who really do want to find a company that buys houses for cash, Orchard can source offers for you.

Orchard was founded in 2017 and currently operates in 6 metro areas across the country. Get started with a free home valuation — Orchard is 30% more accurate than leading estimates.

Should I sell my house for cash?

Selling your house for cash can be a quick and convenient way to sell your house. The buyer paying cash for your house doesn’t have to deal with a mortgage lender, which means no financing, inspection, or appraisals required — and that can speed up a deal and get money in your pocket sooner.

However, when you sell to companies that buy homes for cash, you probably won’t get as much as if you’d sold on the open market. These companies offer below market value in order to ensure that they make a profit when they eventually list the home themselves. Additionally, you don’t get the opportunity of bidding wars, as you would on the open market, which can also drive up purchase prices.

Still, if you’re in a pinch and need to sell your house fast, or as-is, selling your house for cash can be a good solution.

Want to sell your house fast and still make top dollar? At Orchard, we’ll guarantee your home sale but list your home on market to ensure you get the most value out of your home. And for those who really do want to sell fast, we can help you compare companies that buy houses for cash. Learn more about how Orchard works.

FAQs

Need more information? Here's what else to know about companies that pay cash for your house.

What are companies that buy houses for cash?

Companies that buy houses for cash are real estate investors who purchase properties directly from homeowners for cash, often without requiring repairs or renovations to be made. These companies typically buy homes in any condition and use their own funds to make the purchase, rather than relying on bank financing.

How do companies that buy houses for cash work?

Companies that buy houses for cash typically follow a similar process. After receiving a request from a homeowner, the company will evaluate the property and make an offer based on its estimated value and the cost of any necessary repairs. If the homeowner accepts the offer, the company will purchase the property for cash and handle all of the necessary paperwork and closing costs.

What are the benefits of selling a house to a cashbuyer?

Selling a house to a cash buyer can have several benefits, including speed, convenience, cash, and flexibility (particularly when it comes to closing). However, when the cash buyer in question is a company, you may not bet the best offer for your home since companies that buy houses for cash tend to pay below the market rate.

Are there any downsides to selling a house for cash?

While selling a house for cash can be a convenient and fast process, it may not always be the best option for homeowners. Cash buyers typically purchase properties at a discount, so homeowners may receive less money than they would through a traditional sale. Additionally, some cash-buyer companies may engage in unethical practices, so it's important to do research and choose a reputable one.

13 Companies that Buy Houses for Cash (and Alternatives) - Orchard (2024)

FAQs

Are companies that offer cash on a house legit? ›

Yes, companies that buy houses for cash in California are legitimate and operate legally nationwide. Cash house buyers will offer cash for your house to fix and flip for a profit.

What is the easiest house to sell? ›

Starter homes are typically smaller, more affordable properties perfect for first-time buyers or individuals looking to downsize. They often feature two to three bedrooms and one or two bathrooms. What makes starter homes sell quickly is their affordability and broad appeal to a wide range of buyers.

How are so many people making cash offers on houses? ›

Economic uncertainty, particularly surrounding mortgage rates, has made cash offers more appealing. With mortgage rates remaining high, many potential buyers relying on mortgages pulled back from the market, increasing the proportion of cash buyers.

How do I know if my cash offer is legit? ›

In a legit cash offer, no money should be exchanged before the sale has closed. This ensures that both parties are safe and do not lose any money during the process. If someone is too eager to send you money or even ask you for money, this is a sign that this might be a scam.

What are the pros and cons of selling your house for cash? ›

Selling your home for cash means closing on the deal more quickly and getting paid fast, but it can also mean missing out on earning the best price for your home. If you need cash fast or want to make sure your home sale doesn't fall through, consider a cash buyer.

What type of house is easiest to sell? ›

Our most research data across England, Wales and Scotland has revealed that semi-detached homes complete the quickest (32,109 properties took an average time of 150 days to sell between May 2022 and May 2023). As shown below, flats take the longest number of days to sell.

Are empty houses harder to sell? ›

Is It Easier to Sell Empty Homes? In short, emptying your home can make it easier to sell rather than leaving it as it is. However, staged houses may attract higher offers and decrease the time the house sits on the market. The reason is that potential buyers need to be able to visualize themselves living there.

What size house sells the best? ›

Having a smaller property doesn't necessarily mean the home will linger long on the market: 2,000 to 5,000 square foot homes are always appealing to entry-level buyers, agents say. And for homes larger than 10,000 square feet, selling quickly depends on local inventory and pricing.

Who is the best person to sell your house? ›

A listing agent has your back when it comes to the financials, like setting a listing price and marketing, staging, and making repairs to your house. He or she can also help you navigate more personal issues, such as your timeline, and what you're hoping to achieve with the sale.

Who is best to value your house? ›

Chartered surveyors typically provide the most accurate house valuations. They have specialist knowledge, but also offer an unbiased opinion about the quality and value of a property.

How much lower can you offer on a house with cash? ›

Cash house buyers usually offer less, often 10–25% below market value, as they provide a quicker, more streamlined selling process devoid of mortgage hassles.

Why do people buy homes in cash? ›

Paying cash for a home means you won't have to pay interest on a loan. You will also save money on closing costs by using cash instead of taking out a mortgage. Using cash to pay for a home often gives the buyer an advantage in getting the home, in part because the seller does not need to depend on financing approval.

What percentage of people pay cash for a home? ›

As of September 2023, according to Redfin, 34.1% of U.S. home purchases were made in cash. This is up from 29.5% in September 2022, when mortgage rates were lower. In 2024, the percentage of homebuyers who pay cash is likely even higher.

Is buying property with cash a good idea? ›

Bottom line. If you can afford to, buying a home with cash can make your offer more appealing to sellers and speed up the closing process once your offer is accepted. And avoiding a mortgage means saving plenty of money in closing costs and interest over time. Plus, you'll immediately own your home free-and-clear.

Is buying a house in cash a red flag? ›

The IRS may scrutinize large cash transactions, as it raises concerns about potential tax evasion or money laundering. While using cash to buy a house in California is legal, be prepared to provide documentation and explanations to address any inquiries from the IRS.

Should I counter a cash offer on a house? ›

Some buyers and sellers might be hesitant to make a counteroffer because they're afraid to lose out on the sale or purchase of the home. Others might be eager to counteroffer to get a better price, timeline, or other terms. Most of the time, a counter offer is acceptable.

Why make a cash offer on a house? ›

Cash Offer Advantages

There's clearly something to be said for the simplicity of paying cash for a new home. Other benefits include: Lower risk of the deal falling through: Because there is no mortgage, there is no risk of buyer financing falling through. That makes a more comfortable deal for everyone.

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