Last Updated on September 1, 2023 by
One of the best things, when you approach companies that buy houses for cash, is that you may sell your property quickly for cash. Typically, such companies will give you a cash offer within 24 hours, and you may close in less than two weeks.
Now before your eyes start gleaming dollar signs, as the old saying goes— all that glitters isn’t gold, these very companies that buy houses for cash come with a catch.
Sure, they are a quick way to cash in on your house, but these firms do not provide the highest prices for homes.
Consider this, in the last year, more than 20% of properties sold for cash offers.
How?
Simple…
There were two types of firms you need to know of when searching for companies that buy houses with cash:
iBuyers that offer between 70% and 100% of the property’s market value and charge substantial service fees. (They don’t entertain foreclosed or rental houses.)
We Buy Houses For Cash Companies: Generally, they offer anywhere from 50 to 70% of the property’s market value with no extra service charge or closing costs. The best part about these companies is that they will also purchase distressed and rental homes.
Bids from iBuyers such as Offerpad and Opendoor are competitive (sometimes just 1% to 2% cheaper than open market offers), but they are only available in certain large metropolitan areas. Companies that buy houses for cash typically make low offers, almost as little as 50% of the home’s actual market value.
Houzeo
Houzeo is one of the best options for most cash-paying house sellers. An MLS listing on Houzeo.com delivers maximum exposure to cash buyers. This consists of companies like Opendoor and Homevestors, who have made cash bids on Houzeo.
Houzeo does not impose a closing fee or a service fee of 5%. Your home will receive maximum exposure via the MLS. This includes prominent websites like Zillow, Realtor.com, and Redfin.
Your listing will be visible to all local and national cash buyers, including iBuyers, who will then bid for it. You may market houses in any condition on Houzeo.
You can define and negotiate the precise conditions you desire for your closing at the time of closing.
Houzeo is operational in 46 states across the United States. Therefore, you can market to local cash buyers virtually everywhere.
One of the most recommended packages for on Houzeo is the gold package which since it you to market your cash-only property and declare in “Agent Remarks” that you are only interested in cash bids. The gold package includes all the necessary tools required to manage showings and offers.
Offerpad
Offerpad was founded in 2017 and is a real estate cash buyer that purchases properties for cash. Offerpad, an iBuyer renowned for its quick closing schedule and user-friendly interface, is supported by cutting-edge technology, substantial housing market data, and a staff of experienced in-house market professionals.
Offerpad’s proprietary assessment mechanism generates an initial offer price and shares it within 24 to 48 business hours of receiving a cash offer request. However, Offerpad’s final cash offer is determined after deducting average closing fees of 6 to 13%.
Offerpad takes a 5% service fee on the final sale price of a house and often offers between 80% and 100% of Fair Market Value (FMV).
Offerpad exclusively provides cash for homes in select communities. Offerpad will prefer a home that is attractive and requires minimum repairs; hence, dilapidated houses may not receive cash offers.
Offerpad offers a quick closure date, up to 45 days in advance. The earliest possible closing date for a cash offer is seven days. The conditions of Offerpad’s offers are non-negotiable, and the terms of the first cash offer may vary dramatically following the house inspection.
Offerpad is present in 22 locations around the United States, and if you are a homeowner considering using their services, you should only do so if they provide cash for homes in your zip code.
Opendoor
Opendoor is the nation’s first and largest instant buyer (iBuyer), purchasing properties for cash. Opendoor, a company founded in 2014, established the concept of iBuying, which provides fast cash for houses by utilizing market data and technology.
Opendoor will provide a first cash offer within twenty-four working hours. However, Opendoor’s final cash offer is determined after deducting average closing fees of 6 to 13%. Note that the disparity between Opendoor’s preliminary and final offers might be substantial.
Opendoor charges a 5% service fee on the sale price of the house. Typically, they provide 90 to 100% of Fair Market Value (FMV).
Opendoor exclusively provides cash for homes in select communities. Opendoor will prefer a property that is attractive and requires few renovations; hence, dilapidated houses may not receive a cash offer.
Opendoor offers a flexible closing date up to 45 days in advance, however, their offer terms are rigid. In addition, following the house inspection, the terms may vary dramatically.
Opendoor is operating in over 50 areas US. If they acquire houses in your zip code, Opendoor might be a viable alternative for you.
Be sure to check Opendoor reviews on various websites apart from Google and Trustpilot to get a better understanding before approaching them.
We Buy Ugly Houses
Homevestors owns the cash home buyer brand “We Buy Ugly Houses.” It has been in business for twenty years, so its business strategy, reputation, and method for purchasing properties for cash are well-established.
Typically, they target homeowners in hardship who are desperate for cash. The firm purchases undesirable homes, such as those with structural problems, couples that are going through a divorce, a death in the family, poor mortgage financing, inherited residences, high-crime areas, etc. We Buy Ugly Houses will pay between 50 and 70% of the property’s Fair Market Value (FMV).
To receive a cash offer, simply give your address, a photo of your home, and some basic information about the size and condition of your property on the We Buy Ugly Houses website.
Based on local market sales and housing trends, their agents will appraise your home and make you an offer to purchase it. We Buy Ugly Houses operates on an independent franchise basis, therefore the level of service you receive is depending on your region.
We Buy Ugly Houses makes a preliminary cash offer within 24 to 48 business hours. This is the optimal selling price for a distressed property. Your properties will close between 7 to 60 days, with no additional closing costs and no service fees, thanks to flexible closing deadlines.
Typically, We Buy Ugly Houses’ final cash offer matches its original cash offer. If the house seller negotiates really successfully or has a desirable property, the final cash’s offer might increase, but we have no evidence to support this assertion.
If you’re a house seller contemplating this company, you should only do so if you’re seeking a rapid sale and don’t expect high profits on the properties.
Check We Buy Ugly Houses reviews on Google and Trustpilot to understand other customers’ experiences before approaching them.
We Buy Houses
We Buy Houses has received more good feedback than other companies, possibly as a result of their comprehensive screening procedure. Instead of collaborating with anyone, their investors are licensed to utilize the brand name.
Although We Buy Houses does not participate in the offer process, they will remove an investor’s license if they are not conducting business responsibly.
This organization provides offers a cash bid within 48 hours and allows you to close in seven days, don’t expect to negotiate a better price. Since licenses are also exclusive, you’re out of luck if you dislike the particular salesperson in your region.
This implies that just one investor will be available in your region to purchase your house.
Sundae
Sundae is not a standard “cash for houses” firm. Founded in 2018 in California, pre-qualified investors put bids for dilapidated properties. Sundae has over 1,500 pre-screened investors and is expanding its network of money house buyers.
They will not be the ones to pay you to cash in return for your property, but will instead publicize the information to their network of cash buyers. The cash offers will be lower than the open market bids. Sundae will pay you between 50 and 70% of the property’s fair market value.
The platform solicits and collects bids from bidders, and if the house seller accepts an offer and Sundae will manage the deal to its conclusion.
After the seller completes Sundae’s screening and earns a four-day listing on their marketplace, the closing occurs within ten days. In the current seller’s market, it is feasible to receive many cash offers for your home, especially if it is an attractive property!
You’ll receive cash offers depending on investors’ bids. Typically, the transaction is non-negotiable and cash-only. They provide a flexible closing schedule, and you may anticipate your home’s closing to occur between 10 to 60 days.
Unless the appraiser deducts anything during the house inspection, Sundae’s final cash offer is often comparable to the initial cashes offer.
Additionally, repair charges may be deducted from the final cash offer, but you should typically haggle with the investor. In the end, homeowners want a distinct marketplace where pre-screened investors can bid on their homes.
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