The Knock Bridge Loan program (formerly called Knock Home Swap) allows home sellers to access a portion of their current home equity to purchase a new home before they sell. The program offers an alternative to having to sell your home first in order to unlock the cash for a new down payment.

As part of their bridge loan, Knock offers up to $35,000 in interest-free funding to help you get your home ready to list and provides a guaranteed backup offer in case your home doesn't sell within six months.

While reviews for knock.com are overwhelmingly positive, a potential drawback is the additional fee. You'll pay a 2% service fee, plus $1,850 in closing costs for your bridge loan on top of traditional realtor fees and closing costs.

However, unlike some of its competitors, Knock lets you choose your own agent and mortgage lender — which can lead to both savings and peace of mind while navigating a complicated trade-in process.

What is Knock?

Launched in 2015 by the founders of Trulia, Knock addresses the tricky timing issues homeowners face when selling and buying a new home at the same time.

By advancing sellers a portion of their home's equity before selling, Knock allows them to purchase and move into a new home while before selling their old one.

In 2017, Knock raised a total of $44.5 million in combined Series A and Series D funding.[1] At the time, Knock distinguished itself from other iBuyers by encouraging customers to sell their old homes on the open market. Unlike Opendoor and Offerpad, which make cash offers on homes, Knock planned to purchase just 10–20% of customers’ homes.

» LEARN: What's an iBuyer?

With time, Knock's emphasis on open-market sales grew. In June 2020, Knock began expanding its partnerships with established brokerages and local real estate agents. As of November 2020, Knock's network featured 40 brokerage firms with more than 27,000 agents.[2] From 2021 to 2023, Knock rapidly expanded from 15 to 75 metros.

Today, Knock declines to provide specific data but emphasizes that most customers sell their homes on the open market. This is generally good for customers, who have the potential to receive more than their asking price in competitive markets. If a home fails to sell after six months, Knock will still provide a backup offer equivalent to 80% of the home's fair market value.

Looking for Knock.com reviews from customers? Find them here!

How Knock's Bridge Loan works

Knock's Bridge Loan can help you make a more competitive offer on a new home, while avoiding the financial burden of paying two mortgages during a simultaneous home sale and purchase.

Through Knock, you get access to an interest-free bridge loan of up to $500,000, which you can use on top of your new mortgage loan.[3] The exact loan amount will depend on how much equity you have in your old home and how much you plan to put down on a new home.

The bridge loan can be used to cover several items:

• Down payment (up to 20%) on a new home
• Up to six months of mortgage payments on your old home
• $35,000 toward repairs or improvements to your old home
• Moving expenses

While Knock provides the bridge loan directly, you can choose to work with Knock or another lender of your choosing for your new mortgage, if you need one.

Applying for Knock Home Swap is free, and you're under no obligation to move forward.

How to sell your home with the Knock Bridge Loan

Step 1. See if you qualify at knock.com.

Knock starts the process by evaluating your current home. To se if you qualify, Knock will need your address, estimated home value, and estimated mortgage balance.

You can provide this information yourself or refer them to your mortgage lender.

If you qualify for the program, you’ll complete a formal loan application and submit official documentation so Knock can prepare a bridge loan estimate and backup offer amount.

Step 2. Purchase and move into a new home.

If you decide to move forward with Knock, you'll begin your home search knowing that you can make a non-contingent offer on the home of your choice.

Once you close on your new home, Knock will take over the mortgage payments on your old home, so you won’t have to cover two monthly payments at once.

Step 3. Prepare, list, and sell your old home.

Once your home is vacant, you'll have 45 days to make any repairs or improvements, using up to $35,000 in interest-free funding from Knock to cover the costs. You can tap Knock’s network of contractors or find one on your own.

When your home is ready, your real estate agent will start the process of listing, marketing, and showing your old home, just as they would in a traditional sale.

You'll have six months to find a buyer — which gives you an opportunity to get the most competitive offer possible.

If your home doesn't sell on the open market, you can always accept Knock's backup offer, which is typically 80% of fair market value.

Step 4. Settle your bill.

You won't have to pay Knock's fees until you sell your home. When you receive the proceeds from your home sale, Knock will deduct its interest-free Home Swap loan and service fees.

Keep in mind that you'll also need to cover all of the usual expenses associated with selling a home, including realtor commission and closing costs.

» JUMP: See your all-in costs for using Knock

What to watch out for

Knock's Home Swap program comes with a few caveats.

First, Knock will hold your home as collateral until it sells. When you use Knock Home Swap, Knock will place a lien against your property until you pay the loan back in full through the proceeds from your home sale.

Second, Knock's backup offer will only cover 80% of your home's fair market value. If your home doesn't sell after six months, you can choose to accept Knock's cash offer as a last resort — but you'll end up getting far less than your asking price.

Finally, Knock won’t give you the cash from your bridge loan outright — instead, it will pay approved expenses like mortgage payments and repair bills on your behalf.

Am I eligible for the Knock Bridge Loan?

In a nutshell, Knock has to make the numbers work before agreeing to work with you. You’ll have to qualify for a conventional mortgage — and the expected proceeds from selling your old home will have to cover the loans and services Knock is providing.

Knock requires customers to complete two screening processes:

1. Pre-qualification, which estimates the approximate size of your loan
2. Pre-approval, during which Knock specifies the terms of your loan

Because Knock expects customers to sell their old homes on the open market within six months, the company also takes your old home into consideration. The criteria is flexible, but Knock typically wants to work with sellers who:

• Plan to sell and purchase a primary residence (not a vacation home or rental property)
• Currently live in a single-family home, in good condition
• Live within a current service area

Knock might deem your home ineligible if you:[4]

• Live in a condo, manufactured home, multi-family unit, or 55+ community
• Have significant water damage or foundation damage
• Lack recent, similar sales data in your area
• Have unpermitted additions

Additionally, Knock doesn't currently accept distressed or bank-owned homes. In these situations, we recommend working with an experienced real estate agent who can showcase your home to the right buyers in your area.

» CONNECT: Find a great local agent and save thousands with Clever!

Should you use Knock?

If you don't have a lot of cash on hand for a down payment, it can be hard to afford a new home until you sell your old one. Knock closes the buy/sell gap by fronting you a portion of your current home's equity — its market value minus what you owe on the mortgage — to let you move into a new home while they cover the costs of listing and selling your old one.

Knock is a particularly useful option if you are concerned about missing out on your dream home due to a competitive market. Through their equity advance, Knock lets you remove the usual contingencies around selling your home — making your offer far more attractive to a seller.

Knock also provides up to $35,000 in interest-free funds for repairs and cosmetic updates to help you sell your home for more.

As an added benefit, Knock lets you work with your own real estate agent to buy and sell — something competitors like Orchard and Flyhomes don't allow.

Customer reviews indicate that Knock Home Swap reduces the stress of selling and buying a home. The trade-off is that you'll have to pay Knock a service fee on top of the commission you pay to your agent.

Knock's convenience comes at a slightly higher cost

As a bridge loan provider, Knock charges a a 2% service fee, plus approximately $1,850 in closing costs.

While Knock's Home Swap service negates the risk of having to pay two mortgages at once, you'll eventually have to pay Knock back for carrying the costs of your old home while it sells. The company's expenses will be deducted from your proceeds at closing.

You should also know that Knock's backup offer will only cover about 80% of its fair market value — if you're unable to find another buyer, you'll take a financial hit.

Where you CAN save is in using Knock with an agent willing to negotiate their commission.

How does Knock compare to alternatives?

Knock isn’t the only home trade-in service on the market. Since 2017, Orchard (formerly called Perch) has offered similar services.

iBuyers like Opendoor have also begun to offer similar trade-in services to supplement their cash-offer services.

Knock vs. Orchard

Like Knock, Orchard offers an equity advance on your current home to cover the down payment on a new one, letting you move in right away while it lists and sells your home. Orchard also provides interest-free funding to make repairs and a guaranteed backup offer if your home doesn't sell within 120 days.

While Orchard requires you to work with its team of agents and transaction coordinators, its all-inclusive 6% fee means you won't have to pay a separate agent commission. Orchard also allows you to choose your own lender.

Orchard really sets itself apart from Knock by giving you access to as much as 90% of your home's equity before you sell. On a $500,000 house, that's $450,000 in equity to put towards a down payment and related costs.

By comparison, Knock caps its bridge loan at $500,000. If you need more to cover your down payment, buyer closing costs, or repairs and mortgage on your previous home, you'll need to come up with the cash yourself.

With Knock, the sale and purchase happen in a single transaction: Knock holds your old home as collateral until it sells.

» MORE: Orchard Real Estate: The Reviews You NEED to Read!

Knock vs. iBuyers

By positioning itself as a lender, Knock distanced itself from iBuyers — companies that use technology and in-house real estate expertise to make cash offers on homes.

There are two key differences between Knock and iBuyers:

• Offer price on your old home
• Speed

Knock customers work with real estate agents to sell their homes on the open market. This allows you to potentially receive more than your asking price — or at least a competitive offer.

By contrast, iBuyers typically offer fair market value AT MOST. You won’t have much room to negotiate.

On the flip side, iBuyers can move much faster than Knock. For example, Opendoor can provide an initial cash offer within 24–48 hours, and you can close on your home in as little as 14 days. However, it won't be as much as you could get on the open market.

We recommend comparing cash offers from multiple iBuyers if you're looking for a quick cash sale. You can do this using Clever Offers. A top local agent will present you with offers and tell you what your home is actually worth so you can make sure you're getting a good deal.

Knock Home Swap fees

We estimate that it'll cost you 9.5–16.25%, plus $1,850 in loan fees, to use Knock Home Swap. On a trade-in of two homes valued at $600,000, that equates to $58,850–98,950. You'll also need to reimburse Knock for any funds borrowed for repairs, up to $35,000.

Knock's fees, plus your mortgage payoff and bridge loan, will be deducted from your final proceeds.

Keep in mind that you’ll also have to pay the typical closing costs and realtor commissions.

To compare, trading the same two $600,000 homes using Orchard would cost between $54,000–84,000 (9–14%), plus deductions for any home repairs made prior to listing.

You can save thousands in listing fees using Clever to find your agent

Knock stands out from competitors by allowing you to work with any agent you like. This way, you can work with someone you trust while saving considerably on commission.

Clever's free service connects you with top local agents who guide you through the selling process for a 1.5% commission. You can compare and interview multiple agents, with no obligation to use their services.

If you use one of Clever's partner agents to represent you, your all-in costs on a $600,000 home swap go down by 2% ($12,000). Plus, Clever offers eligible buyers cash back at closing — helping you maximize savings while taking full advantage of the benefits of Knock Home Swap.

Knock reviews

Positive reviews | Complaints

Knock has an average rating of 4.8 across 810 reviews.

While most customers praise Knock for its ease, transparency, and quality of customer service, a small minority of reviews cite delayed closings caused by poor communication and disorganization on the part of the company.

Knock isn’t currently accredited by the Better Business Bureau but has a B+ rating, with 13 complaints as of December 2023.

Positive Knock reviews

Home sellers appreciate Knock Home Swap's convenience — especially in highly competitive markets. Knock trade-in reviews emphasize the benefits of making a cash-like offer on a new home, avoiding disruptive showings, and getting extra time to prep their old homes after moving out.

Help in a competitive market

On the positive side, Knock's Home Swap allowed Theresa T. to secure her dream home in a tough market.

Less stress than a traditional home sale

Andrew N. was impressed by Knock's customer service, which greatly reduced the stress of purchasing a new home.

Knock complaints

While Knock reviews skew positive, a few pointed customer reviews reveal that there’s room for improvement in the company's communication and customer service.

Unexplained delays right before closing

This customer feared losing out on a new home because of a closing delay caused by Knock's disorganization and lack of communication, noting last-minute requests for loan documents that had already been delivered.

Costly miscommunication

This customer was told late in the process that they would need to come up with extra cash at closing, resulting in their needing to put less money down than the 20% they originally intended. A down payment of 20% would have allowed them to avoid paying for private mortgage insurance (PMI).

While Knock indicated that the customer would be able to use the money from their home sale to quickly make up for the lesser down payment — allowing them to revise their loan terms to remove the PMI after 60 days — that ended up not being the case. Instead, Knock immediately sold the loan to another creditor with steeper requirements for removing the PMI.

While selling loans in the secondary market is common practice in mortgage lending, the miscommunication on Knock's part cost the home seller hundreds of dollars in extra appraisal fees and PMI — not to mention a lot of added stress.

A real estate agent can make or break your transaction

When buying and selling, you want the right team in your corner. This is especially true in a complicated transaction like a home swap, where you're managing negotiations, closing dates, loan paperwork, requests from the title company, and more all at once.

It's important to choose someone who knows the ins and outs of the local real estate market and will stay on top of the transaction from start to finish.

At Clever, we match home buyers and sellers with top agents from some of the country's best-known brokerages, who work for a pre-negotiated commission of 1.5%.

Through our matching service, agents save considerably on time and marketing costs to find new clients while you save thousands of dollars on commission.

Is Knock available near you?

Knock currently offers its Home Swap in over 75 markets across the U.S.[5]

Knock has a relatively large service footprint, operating in major metros across 18 states. Its closest competitor, Orchard, is available in just 7 states.

If you live within one of Knock's eligible service areas, you can apply for financing just as you would with any other lender.

» Not available near you? Find the best Knock alternatives.

FAQs about Knock

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The post Why Customers Love Knock.com appeared first on Semya-Moya.

Is Sundae right for you? | Pros and cons | How it works | Sundae reviews | Top alternatives | Sundae for investors

What is Sundae real estate?

Sundae is an online marketplace where home sellers can get competing cash offers from investors. These investors purchase homes as is (i.e., in whatever condition they’re in).

Most cash buyer companies give one take-it-or-leave-it offer, but Sundae connects sellers to a nationwide network of property investors to choose from.

Sundae could be a good option if you're under pressure to sell and need the cash quickly.

You won't pay any out-of-pocket fees when you sell to a Sundae investor. The investors pay the platform fees, closing costs, and repairs. However, Sundae deducts an admin fee from the winning bid amount, so you won't get the full amount the buyer offers.

While selling costs are low with Sundae, the final sale price of your property may be low as well. Even with competing bids, cash investors usually pay up to only 70% of a home's estimated resale value.

» JUMP TO: The best alternatives to selling with Sundae

Sundae at a glance

Should you use Sundae to sell your home?

If you’re considering selling directly to a cash buyer, Sundae is one of the better options because you can get multiple bids for your house and sell on your timeline.

Sundae can help you sell your property as is if you're in a tough situation, like if you have:

• An impending foreclosure
• A home that needs extensive cosmetic updates or repairs
• A rental property with bad tenants
• A significant, unexpected life event
• An inherited home that you can't devote time or resources to

With Sundae, there are no out-of-pocket costs, inspections, or stressful negotiations.

Reviews of Sundae are mostly positive. Many customers claim the service is fast and easy with better-than-expected offers on their homes (though not always). Sundae also offers cash advances of up to $10,000.

However, Sundae is definitely not right for everybody. Sundae's convenience can come at a cost, which makes it a poor choice for most sellers. Cash buyers usually offer just 50–70% of a home’s fair market value. Typically, their goal is to flip your house for a profit after some quick repairs and remodeling.

Given that Sundae also takes a cut of the winning bid, it's worth comparing it with other options to see what investors might offer you directly.

If you want to be sure you're getting a solid deal on your home, Semya-Moya's free service can help by connecting you with a local realtor. Your realtor will estimate what your home could sell for as is and help you compare that number against bids from local cash buyers. This way, you can explore all your options before signing a contract.

Pros and cons of selling on Sundae.com

Sundae reviews and complaints

Sundae real estate reviews are mostly positive. The company has an average rating of 4.6 across multiple review sites, including the Better Business Bureau[6] and Yelp.[7]

Most sellers are happy with Sundae's service

In review after review, sellers praise Sundae's professionalism, smooth process, and excellent customer service. Sellers often even express surprise at the strength of the offers they received.

Some sellers are unhappy with the offers from Sundae home buyers

While many sellers on Sundae's marketplace claim to have received much higher offers than expected, others are disappointed.

Unfortunately, investors aren't bound to the estimates that Sundae provides, and some homes on the platform have sold for as much as $200,000 less than anticipated. A few reviews also mention offers that were lowered or rescinded altogether AFTER the sellers had already accepted.

Some Sundae customers are disappointed after finding out how much an investor made after reselling their property later on. One customer gave a one-star review after seeing their former home sell for $100,000 more than they'd been offered just six weeks earlier.

However, low offers are the norm when selling to an investor, so if price is your top concern, you might want to consider talking to a real estate agent about your options.

👋 Find top local agents, save thousands on realtor fees!

Several complaints mention being spammed by Sundae

Most of Sundae's negative reviews aren't actually from sellers but from homeowners who've made their way onto Sundae's mailing list and continue to receive unwanted mail despite repeated requests to be removed.

How does Sundae work for sellers?

If you're interested in receiving offers from Sundae's home buyers, the process is simple:

1. Submit your information. Start by submitting basic information about your property online or by phone to see if your property is eligible.
2. Book a home visit. If your property qualifies, Sundae will schedule a walk-through with one of its local "market experts," who will take professional photos and provide an estimate of how much investors might pay for your home. If you decide to move forward, you'll sign an agreement giving Sundae permission to list your home on its marketplace.
3. Complete a home inspection. Sundae works with third-party home inspectors who will examine your home and complete an inspection report for your property's online profile.
4. Go live on Sundae's marketplace. Once your home is posted on Sundae's marketplace, investors can begin bidding. All bids are non-contingent, cash offers — meaning the buyer can't back out after entering into a purchase contract. If they do, they'll forfeit the $20,000 deposit they're required to put down on the home.
5. Review offers. After four business days, you can review the highest offers from investors. You can still back out without penalty, as long as you do so BEFORE signing a purchase agreement with the investor.
6. Close the deal. Once you sign a contract with the investor, you can receive a $10,000 cash advance from Sundae to help with any expenses. You can expect to close in as little as 10 days or as long as 60 days, depending on your timeline.

Does Sundae charge any fees?

Sellers pay zero fees when using Sundae.com to sell their home — not even for the inspection. Instead, all expenses are shifted to the buyer. This includes a $1,000 admin fee and 5–7% buyer’s premium that's deducted before you see an offer.

However, what sellers save in fees, they'll probably more than make up for in lost profits.

Investors on platforms like Sundae look to buy low to avoid losing money when they take on the risk of a home flip. Their offers will reflect:

• The amount of profit they think they can get from a home, weighed against the amount of time, effort, and risk involved in doing the repairs and remodel
• The amount of work that needs to be done (based on the photos, virtual tour, and inspection report included on the online property profile
• How much they'll pay in buyer's fees and closing costs

Because buyers assume all of the costs of doing business on Sundae's marketplace, you can typically expect offers that are well below market value for your home.

How does Sundae's marketplace work for investors?

Sundae.com offers investors three membership tiers: Essential, Edge, and Edge+.

Sundae's Essential plan lets you view all properties listed on its marketplace, but you can only bid on homes located in your primary market, which you select when you sign up.

While the Essential plan is free for investors, you won't have access to a lot of the site's more useful tools — such as insights that show you how your offers compare with other investors on the marketplace.

Investors with the $159 Edge plan get bidding rights in three markets and access to all of the site's tools and features. For $399, Edge+ offers the same features as Edge, but gives investors the ability to bid in any of Sundae's markets nationwide.

Signing up

Sundae's investor memberships can be purchased on a monthly or annual basis, with a 20% discount if you pay the annual membership fee up front.

When you sign up for a membership online, you'll need to verify your identity by providing your contact information and Social Security number. You can also be onboarded over the phone if you don't wish to submit sensitive information online.

» COMPARE: Sundae's investor marketplace vs. DealMachine

Bidding process

Once Sundae approves your account, you can start searching for and bidding on active listings, which will include property information, photos, a 3D tour, a third-party inspection report, and the seller's asking price. In some cases, sellers might also choose to hold an investor showing leading up to the three-day auction period.

If your bid on a home ends up in the top three, you'll work with Sundae to write up a purchase agreement and send it to the seller to review. If your offer is chosen, you'll need to put down a $20,000 non-refundable deposit to hold the home.

Investors who use Sundae to bid on properties are responsible for all transaction costs, including:

• 5–7% buyer's fee, which varies by property value and market
• $1,000 admin fee
• Buyer and seller closings costs
• $250 per day late fee for any closing delays requested by the buyer
• All expenses related to repairs, cleaning, and removal of personal items from the property

Sundae Funding

In 2022, Sundae launched Sundae Funding to help investors finance their purchases.

The company claims to offer investors competitive rates and quick pre-approvals, with underwriting documents reviewed only once a year.

In addition to financing the purchase price, Sundae Funding can also cover remodeling and construction costs. For members who use Sundae Funding to close a deal on Sundae's marketplace, the company promises five-day closings and waives late fees for any financing delays.

Are Sundae home buyers legit?

Sundae's home buyers are legitimate real estate investors who use its online marketplace to bid on investment properties and purchase them for cash.

To access Sundae's marketplace, investors go through a self-service vetting process that includes providing a social security number or speaking with an onboarding agent to confirm their identity.

However, Sundae does NOT require investors to provide proof of funds or evidence of prior real estate investments.

To keep costs down for the sellers, Sundae requires investors to pay:

• A 5–7% buyer's fee on each property sold
• All closing costs
• Repair and cleaning expenses, including the removal of any items left behind by the seller

As added protection for sellers, Sundae enforces a zero-tolerance policy for investors reaching out or driving by a property without a seller's permission. Any user who does so will be dismissed from the platform.

What is Sundae real estate's model?

Launched in 2018, Sundae is a real estate start-up that helps sellers market their homes to investors who purchase properties for cash — at no cost to the seller.

Sundae's platform caters to homeowners with distressed or hard-to-sell properties that simply don't appeal to most buyers.

Rather than having to sell to a typical "we buy houses" company offering pennies on the dollar, Sundae's marketplace gives homeowners the chance to get the highest off-market value for their home by drawing multiple competing bids from its network of 2,600 investors.

According to Sundae:

• Homeowners receive around 22+ bids on average and choose a buyer based on the three highest offers.
• The average difference between low and high offers for a home listed on its site is $71,000.

Operating under the slogan "home buyers with heart," Sundae distinguishes itself from other companies that buy houses for cash by promoting a mission of helping homeowners get the best outcome when selling a house that "needs some love." The company recently earned the endorsement of talk show host Dr. Phil.

In addition to its marketplace, Sundae offers funding options and education for real estate investors — including a podcast geared toward women investors. It also offers sellers cash advances of up to $10,000 to help with moving and other expenses before receiving the rest of their payout at closing.

» JUMP: How Sundae works for investors

Reviews of Sundae are largely positive, with sellers citing a fast, easy process and better-than-expected offers on their homes (though not always).

The company currently operates in 11 markets, with plans for further expansion following an $80 million Series C funding round in 2021.

Where do Sundae's home buyers operate?

Sundae.com provides off-market listing services in 11 major metros across CA, GA, NV, TX, and WA.

Sundae has a much smaller footprint than many other cash buyers, such as national "we buy houses" brands. So if you need cash right away — and don't live in one of Sundae's services areas — you might want to look into a competitor such as HomeVestors or We Buy Houses.

How does Sundae compare with alternatives?

Sundae vs. 'we buy houses' companies

Cash buyers such as "we buy houses" companies allow you to offload a property quickly — sometimes in as little as a week. They also tend to have larger service areas in the U.S., with some brands like HomeVestors operating franchises in 49 states.

However, offers from companies that actually purchase homes for cash are usually non-negotiable. So if you want a better price, you'll have to find another buyer.

Sundae takes a different approach by soliciting offers from multiple investors at once. With more offers to choose from, selling on Sundae gives you a better chance of getting a decent price for your home — though it probably won't be as much as you'd get on the open market.

» COMPARE: 12 Best Companies That Buy Houses for Cash

Sundae vs. a top real estate agent

If you have a little wiggle room with your timeline, an established agent can help you sell your home fast — and for a much better deal than the 70 cents on the dollar offered by cash buyer companies.

As an example, we spoke to Nathan Clark, who leads a top-performing real estate team in Rhode Island and has helped many clients in need of a fast home sale. One of his clients had inherited a home that wasn't in good condition and needed to sell it within a week.

There was no time for a full rehab — and TONS of clutter — so Clark hired a junk removal company for $850 and focused on making the home look brighter, tidier, and more spacious.

Within five days, Clark had the house completely cleared out and professionally cleaned. During that time, he contacted hundreds of buyers in his database and invited them to drive by the home so they'd be ready to make offers when it was listed.

If listed "as is," Clark estimated that the home would have sold for about $300,000 after 30 days on the market. However, after a few days of decluttering, the sellers ended up with an offer of $350,000 within 48 hours of being listed.

If you want to sell quickly, says Clark, "Research your agent and price the home right for the market."

Find a top local agent and save with Clever

If you need a swift home sale, but don't want to sacrifice a ton of equity to get it, consider working with a listing agent with a track record of selling homes fast.

Clever can connect you with top-rated real estate agents who know how to position hard-to-sell homes in your local market. You can interview as many agents as you like until you find someone with the right strategy for your goals and timeline.

Best of all, sellers who list with a Clever agent pay just 1.5% in listing fees — helping you get more for your home while saving thousands!

» Match with a Clever agent today!

Sundae vs. iBuyers

If you're determined to avoid listing your home on the market, an iBuyer is another option to consider.

Compared with "we buy houses" companies, iBuyers like Offerpad and Opendoor pay much closer to fair market value for homes — usually right around 98–99%. However, iBuyers tend to have much stricter purchase criteria.

Rather than buying homes "as is" to fix up, iBuyers look for homes in decent condition that they can quickly resell for a small profit. They make money by charging sellers services fees of 5–10% in exchange for taking on the required prep work.

Each iBuyer has slightly different purchase requirements, but most look for well-maintained, fairly cookie-cutter homes that fall within a certain price range for the area. Like Sundae, iBuyers operate in limited markets, usually concentrated around large metros with healthy real estate markets.

If you're not sure whether your home will qualify, it doesn't hurt to hop on an iBuyer's website and submit your information. In most cases, you’ll receive an offer (or rejection) within 24–48 hours — with no obligation to commit.

» COMPARE: The Best 6 iBuyer Companies Ranked and Reviewed

FAQ about Sundae Real Estate

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The post Sundae Reviews: What to Consider Before You Sell appeared first on Semya-Moya.

What do you get with Offerpad?

Offerpad can give you the convenience of a cash offer for your home and a fast closing on a date you choose. The company provides cash offers within 24 hours of filling out its online form, and it can close in just 8 days in most markets or up to 90 days if you need more time.

Customer reviews show that most sellers have a positive experience with Offerpad. However, negative reviews have become more common in the past year, and offers aren’t as close to market value as they used to be.

Be sure to compare Offerpad's offer against a few others. That way, you can maximize your chances of getting a fair price while still enjoying a quick sale.

Should you use Offerpad?

Offerpad can be a good option if your priorities are to sell quickly and avoid the inconvenience of showings and home prep.

But you’ll likely make less from your sale than you would by listing with a real estate agent. And Offerpad’s 5% service fee, alongside repair and closing costs, will eat into your profits.

It’s in your best interest to compare Offerpad's offer with offers from other cash buyers and with your home’s market value. Doing this can empower you to choose the best offer and negotiate more effectively with potential buyers.

What is Offerpad?

Offerpad is an iBuyer, a company that uses technology and an automated valuation model to buy homes.

Like its competitors, Offerpad’s goal is to rethink the way real estate transactions unfold. Its cash offers provide an alternative to the time-consuming and uncertain process of preparing, listing, and marketing a home on the open market.

Once Offerpad purchases your home, it completes any repairs or renovations before relisting it on the open market.

In exchange for these services, Offerpad charges sellers a 5% service fee, plus repair and closing costs. If a seller backs out after accepting an offer, Offerpad may charge a 1% cancellation fee.

Offerpad locations

Offerpad buys and sells homes in these 21 metro areas:

• Arizona: Phoenix
• Colorado: Colorado Springs, Denver, Fort Collins
• Florida: Jacksonville, Orlando, Tampa
• Georgia: Atlanta
• Indiana: Indianapolis
• Kansas: Kansas City
• Missouri: St. Louis
• Nevada: Las Vegas
• North Carolina: Charlotte, Raleigh
• Ohio: Columbus
• South Carolina: Columbia
• Tennessee: Nashville
• Texas: Austin, Dallas–Fort Worth, Houston, San Antonio

Offerpad reviews from real customers

What customers liked about Offerpad

Sellers praised Offerpad's customer service

The positive reviews we read often praise Offerpad's customer service. Customers were especially impressed with how accessible the company reps were, which helped create an easy sale process.

As one customer said, “[Offerpad’s] representative was always available to answer any questions I had, irrespective of the time or day.”

Another reviewer noted, “The communication was stellar! Extremely friendly and kind team that guided me and never missed an email or a question I had.”

Customers felt that Offerpad kept its promises

Most customers said that Offerpad worked just as advertised, allowing them to sell fast and without any unwanted surprises. Reviews use language like "no surprises" and "great from start to finish."

One customer said, “This was the easiest process from start to finish. Within 3 weeks we had the inspection and closing with no issues at all. The offer was exactly what we anticipated and we had our funds wired the same day as the closing.”

Similarly, another reviewer said, “I felt completely supported and did not have one single issue with a seamless experience. I sold my home to them and they were very honest and zero surprises.”

Common complaints about Offerpad

Final offers were less than initial offers

Some customers complained that their final offer was significantly less than the initial offer.

As one customer noted, “Offerpad decreased their offer by almost 35000 (almost 8 percent of the sale price) after their 10 day inspection period.”

Often, these reductions were due to issues uncovered during the inspection. Some reviewers felt the steep repair costs were unjustified.

For example, one seller said, “They offer you a good price for your house, make you think that everything is good. They do an inspection and fill it with items that do not cost very much, like light bulb needs replaced or lock on bathroom door doesn't latch. They then tell me they need to take 62k off the purchase price for 'repairs' but do not offer an itemized list with prices for each item.“

Buyers complained about the quality of repairs

Among the complaints, we found a common thread of dissatisfaction with Offerpad's repairs. Several Offerpad reviews report that the company promised multiple repairs that were either subpar or left incomplete.

For instance, this person said, “I wish I could leave photos here to show just how bad some of the work was done. New cracked tiles on the countertops and floor, raw unpainted wood on eave replacement, paint on the skylight from roofing work.”

Buyers especially thought that the repair contractors provided low-quality repairs, which led to unexpected expenses for the new homeowners.

For example, one buyer complained, “The brand new AC unit that Offerpad said [they] put in was so badly damaged due to poor installation that it does not work at all. So I have to pay to have an entire brand new unit installed because of either Offerpad's dishonesty with the repair or poor choice of contractors.”

How Offerpad works

Sell to Offerpad | List with Offerpad | Buy from Offerpad | Additional services

Offerpad’s main service is an iBuying program called Offerpad Express, where you sell your house directly to Offerpad for cash.

The company also offers a listing service called Offerpad Flex, which is similar to listing with a traditional real estate agent.

Buyers can purchase homes directly from Offerpad and use the company’s home loans division called Offerpad Mortgage (or Offerpad Home Loans).

You can also bundle services, such as buying, selling, and getting a mortgage, all through Offerpad.

Selling with Offerpad Express

Step 1: Submit your information

To receive an initial cash offer, submit your address and contact info online.

The website will guide you through the process, prompting you to provide your desired closing date and the following information about your house:

• Square footage
• When it was built
• Layout
• Permitted and unpermitted additions
• Countertops and flooring
• Appliances
• Landscaping

A lot of this information will be autofilled based on the information Offerpad has about the address. However, you'll have to complete some things yourself.

The process is simple and takes only a few minutes to complete. First, Offerpad will ask specific questions about the house's features:

Offerpad will also want to know about the community your house is in.

Then it'll ask about your desired closing date.

Step 2: Accept the offer

Once you submit your information, you'll receive an initial cash offer, contingent on a home inspection, in about 24 hours. You’ll have four days to decide whether to accept, after which your offer will expire. (After this point, you can renew your offer — but it may be higher, lower, or the same.)

When you accept Offerpad’s cash offer, you’ll have to sign a legally binding contract to progress to the next step. However, if the inspection results in Offerpad changing its offer, you can walk away without penalty.

If you feel the offer is too low, you can question Offerpad’s reasoning or point out anything the company may have missed. However, there’s no guarantee that Offerpad will adjust its offer.

Step 3: Complete the inspection

Within 15 days of getting your initial offer, Offerpad will send a third-party inspector to your property.

This part of the process will be the same as a traditional sale. The inspector will spend about two hours combing over every inch of your property, looking for issues such as water damage, structural problems, and general wear and tear.

Offerpad requires homeowners to be present for the inspection, so it’ll be a good idea for you to follow along and ask questions as the inspector evaluates your property. This can help avoid any surprises.

Step 4: Receive an updated offer

After the inspection, Offerpad will provide an estimated cost of any necessary repairs.

At this point, Offerpad might also update its cash offer — or back out entirely if your home doesn’t meet its criteria.

If you're able to move forward, you’ll have options for how to proceed:

• Accept a credit equivalent to the cost of repairs
• Agree to hire contractors to make the repairs to Offerpad’s specifications
• Cancel the purchase agreement without penalty

Note that for especially pricey repairs, you may be required to agree to Offerpad’s repair credit to proceed with the transaction.

Step 5: Close

One of Offerpad’s key benefits is a flexible closing date. You can schedule your closing date 8–90 days after accepting Offerpad’s cash offer.

You can also arrange to stay in your home up to three days after closing through the company’s Extended Stay program.

Two days before closing, Offerpad will schedule a walk-through to ensure all repairs have been completed. Unfinished or inadequate repairs could delay closing.

If everything looks good, you can proceed to the closing table. You’ll be responsible for paying closing costs (typically 1–3% of the purchase price).

Offerpad uses third-party vendors for title company services, depending on the location:[11]

• Arizona, Colorado, Florida, Indiana, Nevada, Ohio: First American Title
• Alabama: Statewide Title Services
• Georgia, North Carolina, South Carolina: The law offices of Hankin & Pack
• Missouri: Touchstone Title Services
• Tennessee: Foundation Title & Escrow
• Texas: Endpoint Title Services

At closing, you’ll receive a check for your net proceeds — the cash offer price, minus Offerpad’s service fee, closing costs, and any repair credits.

Offerpad preliminary offer vs. final offer

Offerpad’s final offer is typically lower than its preliminary offer. The company completes an inspection before giving the final offer, which includes an estimate for repairs.

The difference between the first and final offer is often substantial, according to our research and many online Offerpad reviews. For example, one seller said that Offerpad “went from [a] $189,000 offer to $148,000 after [an] inspection.”

Offerpad’s preliminary offer is a legally binding agreement. So if Offerpad doesn’t change its offer after the inspection, you could be stuck with it. If Offerpad does adjust its offer, you can terminate the contract without penalty.

By contrast, other iBuyers, like Opendoor, only require a contract after the inspection, when you know exactly how much money you'll receive for your home.

Because the offer can drop so dramatically, it’s important to take the preliminary offer with a grain of salt. We recommend seeking offers from multiple buyers in your area and comparing them to what your home could be worth on the open market.

Offerpad fees

When you use Offerpad, you'll spend about 7–10% of your home's selling price on service fees and closing. This may be a little more expensive than using a seller's agent, but not by much.

There is also a 1% fee for canceling if you back out of the deal after four days after receiving the updated offer.

Repair costs can be the highest Offerpad fee. But the company's repair estimates vary widely, so it’s hard to predict what your estimate will be.

While some sellers thought the repair estimates were reasonable, others thought they were too high. For example, Bradley Carpenter, a home seller in Kansas City, was quoted $40,000 after Offerpad’s inspection. This quote was much higher than Opendoor’s $7,000 estimate.

» READ: We Found the True Cost of Offerpad's Fees

What kinds of homes does Offerpad buy?

Offerpad buys properties that are:

• In relatively good condition
• Constructed after 1950
• Single-family residential homes, including townhomes, condos, and homes in gated communities
• Valued under $1 million (depending on the market)
• On a lot up to 1 acre
• Under clear ownership (no double escrow)
• Vacant on the close date

Offerpad also purchases homes in age-restricted communities that cost up to $350,000.

Some properties are ineligible for purchase, including mobile, manufactured, and prefabricated homes. Offerpad also doesn't buy properties with significant foundation, structural, or other conditional issues.

Offerpad's cancellation policy

Offerpad charges a 1% cancellation fee if you back out of the purchase agreement. This 1% penalty could cost hundreds or even thousands of dollars. Offerpad’s main competitor, Opendoor, doesn't charge a cancellation fee.

If Offerpad changes your offer or requires you to cover repair costs, then you can cancel without paying a fee. An Offerpad representative told us that the window for canceling penalty-free is four days.

Listing with Offerpad Flex

Offerpad's Flex program allows you to list your home for up to 60 days on the open market with an Offerpad real estate agent. If your house doesn’t sell, you have the guarantee of a cash offer in your back pocket.

Offerpad charges a 6% fee for this service, which covers the commission for the listing agent who will help you sell the home. This fee also includes the cost of the buyer's agent commission, which is typically paid by the seller.

Offerpad will provide staging and cleaning services to get the house in market-ready condition. You can also take out an interest-free loan from Offerpad for improvements like painting, flooring, and new appliances. You'll pay back the loan at closing.

Step 1: Request an offer

The first step is to answer questions about your home online, just as you would with the Offerpad Express program. You have the chance to submit photos of your home to help Offerpad produce an accurate price estimate.

Step 2: Get the home ready for showings

Offerpad will provide listing agents who will help you sell your home. You'll get help with cleaning, landscaping, and handyman services so your home looks its best. If you decide to make repairs, Offerpad will allow you to take out an interest-free loan you can pay back at closing.

Step 3: Find a buyer or take the cash offer

If you find a buyer, you'll close on the home with them.

If you don't find an offer you want to accept on the open market, you can take Offerpad's initial offer any time within 60 days. If you accept the offer, you'll need to sign a purchase agreement and then have your home inspected. Offerpad will then adjust your offer and may require home repairs before closing.

Buying from Offerpad

Step 1: Get prequalified for a mortgage

To buy a home through Offerpad, you’ll have to be prequalified for a mortgage.

In this stage, you’ll gather all of the information about your financial history, such as your credit score and any debt you currently have. A lender will review your self-reported information and recommend home loans you might qualify for.

Note that this is different from pre-approval, which is not exclusively self-reported.

» READ: Pre-Approval vs. Pre-Qualification: What’s the Difference?

Step 2: Browse homes online

Similar to Zillow or Redfin, Offerpad has an online portal listing available homes in a given area.

You can filter results based on your criteria, such as the number of bedrooms or the square footage.

Step 3: Download the app

Rather than in-person tours, Offerpad allows prospective buyers to enter and tour properties on their own schedules.

Once you download the Offerpad app and verify your identity, you can use your smartphone to unlock Offerpad properties you’re interested in.

You can view homes any time between 6 a.m. and 8 p.m., seven days a week.

Step 4: Make an offer

If you find your home through Offerpad, you can make an offer with or without an agent’s representation. If you already have an agent, you may be responsible for the 3% buyer’s agent commission.

Offerpad may recommend getting a home loan through Offerpad Mortgage. However, you’re not obligated to do so, and you can shop around for the best rates.

Step 5: Close

If you’re buying a home directly from Offerpad, you can schedule the closing at your convenience — which can help you coordinate the timing if you’re also selling your home.

Offerpad uses third-party vendors for title services, depending on your location.[9]

Additional Offerpad services

Free local move

If you’re moving within a 50-mile radius, Offerpad will cover the cost of your move through a third-party moving company.[12] The estimated value is $299–1,077, depending on the size of your home.[13]

This program is only for homes up to 2,800 square feet and up to 13,000 pounds. If your home exceeds these limits, you can purchase services directly from the moving company. Note that packing services aren't included in the free local move.

You may need to notify Offerpad at least 7–21 days before the close of escrow that you intend to use the free local move.

Extended Stay

Offerpad allows sellers to stay in their old home for up to three days after closing,[14] providing some breathing room for a less stressful move.

To be eligible, you’ll first have to complete a post-possession addendum. This contract allows you to legally remain on the premises after selling your home, and it outlines the specific dates and deadlines you’ll have to abide by.

If you take advantage of this option, Offerpad will temporarily withhold a security deposit from the proceeds of your home sale. Once you vacate the home, Offerpad will inspect the property to make sure it’s in good condition and release the funds back to you.

Opendoor has a similar service called Late Checkout that allows you to stay up to 17 days, but you'll need to pay a security deposit and daily rent based on a percentage of the home's value.

Instant Access

If you’re interested in touring an Offerpad listing, you can take advantage of the company’s Instant Access tool. Instant Access is currently available only in Atlanta and Phoenix.[15]

To use Instant Access, you can:

• Download Offerpad’s app via the Apple App Store or the Google Play Store
• Take a selfie with your smartphone
• Submit your US driver’s license

Once you’ve verified your identity, you can walk up to the front door of any Offerpad home you’re interested in and request access via your smartphone. The door will automatically unlock, allowing you to tour the property at your convenience.

Properties can be unlocked any time between 6 a.m. and 8 p.m., seven days a week, meaning that you never have to schedule tours or attend an open house.

Bundle rewards

Offerpad’s Bundle Rewards program allows you to streamline the process of selling one home and buying another, provided the home you want is already owned by Offerpad. This program enables you to coordinate closings, line up your move, and avoid paying two mortgages at once.

You can also bundle your purchase of an Offerpad home with an Offerpad Mortgage. While bundling may give you a discounted rate, you aren’t obligated to use Offerpad Mortgage. Other lenders may offer better rates.

» MORE: Home Trade-in Programs: How to Buy a House Before You Sell.

Top Offerpad alternatives

Sell to another cash buyer

Offerpad isn’t the only option for a quick cash offer. You can also try other cash buyers (like local investors), another iBuyer (like Opendoor), or a "we buy houses" company.

Company	Customer Rating	Best for	Service Fee	Time to Close
Best overall Clever Offers	5/5 (2,950 reviews)	Comparing multiple offers	None	Varies by offer type	Learn More On listwithclever.com
Opendoor	4.3/5 (3,501 reviews)	Quick closing and reasonable fees	5%	14–60 days (flexible)	Learn More On listwithclever.com
We Buy Houses	4.5/5 (3,135 reviews)	Hard-to-sell homes	None	7–14 days	Learn More On listwithclever.com

Clever Offers

Clever Offers is a free service that helps you quickly compare offers from reputable local cash buyers, including iBuyers like Offerpad.

When you contact Clever, a member of its team (called a Concierge) will ask you about your home-selling goals. Then they'll field offers from multiple cash-buying companies, creating healthy competition among buyers. Your Concierge can walk you through each offer and answer any questions.

You'll also get a professional home valuation, so you can compare the cash offers to your home’s market value.

Opendoor

Opendoor is the largest iBuyer and Offerpad’s main competitor. Like Offerpad, it provides fast cash offers, charges a 5% service fee, and can close quickly. It also has similarly strict purchase criteria for properties, avoiding homes in poor condition.

Unlike Offerpad, Opendoor doesn’t charge a cancellation fee. However, if you want to stay in your house after closing, you have to pay a daily “rent.” Offerpad lets you stay for free for up to three days.

While iBuyers offer a convenient selling process, you’ll get less for your home than you would on the open market with a realtor.

» MORE: Opendoor Reviews: Everything You Need to Know

'We buy houses' companies

“We buy houses” companies also make quick cash offers. Unlike iBuyers, these companies typically look for homes in poor condition. They buy homes at a bargain price, make repairs, and then flip them.

A "we buy houses" company will offer far below market value for your property. But the lower selling price may be worth it if you have a property that's facing foreclosure, distressed, or inherited.

» MORE: Are "We Buy Houses" Companies a Rip-Off?

List with a real estate agent

Real estate agents can’t guarantee a fast sale, but they can create a plan to sell on your timeline. Listing with a realtor is usually the best option if you want to make the most money on your sale.

Local agents can maximize your home’s sale price by creating competition among multiple buyers. Agents are incentivized to get the most money for your home, since the more it sells for, the more commission they earn.

A traditional real estate agent charges 2.5–3% in commission, but you can find full-service agents who charge a lower listing fee of 1.5–2%. We recommend interviewing multiple agents to find the right fit. 

» MORE: The Best Low Commission Realtors and Brokers

Frequently asked questions about Offerpad

Contact Offerpad

The post Offerpad Reviews: Everything You Need to Know appeared first on Semya-Moya.

Whether you need to sell quickly or don't want to make repairs, you can find plenty of buyers willing to pay cash for houses. Cash home buyers include private investors, "we buy houses" companies, and iBuyers. They provide near-instant cash offers and can close in as little as a week or two. But selling directly to a cash buyer isn't always the best option.

Here are a few things you should know:

• Cash home buyers pay less than market value. Most cash buyers pay no more than 70% of a home's after-repair value, minus repair costs. Some investors can offer more, depending on the arrangement. iBuyers like Offerpad and Opendoor offer closer to market value, but they're far more selective about the homes they purchase and deduct money for repairs.

• You need to vet a buyer's funding before signing a contract. Before selling to an investor, ask for an official proof of funds (POF) letter from their bank. Experienced and legitimate cash home buyers expect this question, and they may provide the POF without you asking. The buyer should also put down an earnest money deposit (usually 1–2% of the sale price) when you go under contract, which gives you the assurance they're committed to the sale.

• You may need to contact multiple buyers to get a decent offer. Cash buyers are investors with varying budgets, goals, and constraints. Some buy almost any home if the price is right. Others stick to certain locations, price ranges, or property types. Your options, offer prices, and closing speed will depend on your home and situation.

When selling your house for cash, you'll get the best outcome by seeking competing offers from multiple cash buyers. You can do this on your own, with the help of a realtor, or through a free service like Clever Offers.

10 best companies that buy houses for cash

Company	Customer Rating	Type	Service Fee	Time to Close
Best overall Clever Offers	5/5 (2,950 reviews)	Cash offer network	None	Varies by offer type	Learn More On listwithclever.com
Opendoor	4.3/5 (3,501 reviews)	iBuyer	5%	14–60 days (flexible)	Learn More
Offerpad	4/5 (2,706 reviews)	iBuyer	5%	8–90 days (flexible)	Learn More
We Buy Houses	4.5/5 (3,135 reviews)	Franchise cash buyer	None	7–14 days	Learn More
Sundae	4.6/5 (683 reviews)	Auction-style marketplace	$1,000 + variable % deducted from offer	10 days	Learn More
We Buy Ugly Houses	4.4/5 (1,356 reviews)	Franchise cash buyer	None	3 weeks	Learn More
HomeLight Simple Sale	4.6/5 (1,178 reviews)	Cash offer network	None	As little as 10 days	Learn More
MarketPro Homebuyers	4.2/5 (448 reviews)	Cash home buyer	None	7 days	Learn More
Knock	4.8/5 (833 reviews)	Home trade-in	2% service fee + realtor commission	Varies	Learn More
Orchard	4.4/5 (614 reviews)	Home trade-in	1.9% service fee + 6% brokerage fee	14–60 days (flexible)	Learn More

» JUMP TO: Our full company reviews

What is the best option to sell my house for cash?

🏡 'We buy houses' companies

"We buy houses" companies are best for homeowners with properties in disrepair or financial distress.

These companies typically pay a maximum of 70% of a home's after-repair value (the amount they expect to make after fixing and flipping a home), minus the cost of repairs. In exchange for the lower sales price, cash home buying companies can often make an offer on the spot and close in as little as 1–2 weeks.

Consider using a "we buy houses" company if:

• Your home requires extensive repairs you cannot afford
• You're facing foreclosure
• You need to sell in a matter of weeks
• You don't need to pay off a mortgage with the proceeds

🏡 Private investors

Many private investors also follow the 70% rule, but sometimes they offer more flexible solutions than larger companies.

Lesser-known cash offer options include novation agreements, mortgage assumptions, and seller financing. These types of deals can help you maximize your home value while still getting the hands-off benefits of a fast cash home sale. 

With these options, you can expect to get as much as 80–90% of your home value. Sometimes you can get up to 110% or more, depending on the type of deal. 

Consider getting offers from private investors if:

• You want more options than a typical "we buy houses" company offers
• You have the time to weigh competing offers
• You're willing to do your due diligence (verifying the buyer's funding and having a professional review the contract) before signing

» Get competing cash offers from reputable home buyers in your area

🏡 iBuyers

iBuyers like Offerpad and Opendoor are best for homeowners who want a hassle-free sale and have a house that needs minimal repairs.

Like "we buy houses" companies, iBuyers can make an initial offer within 24–48 hours and close in as little as 2 weeks. Plus, they pay significantly more than your typical "we buy houses" company or local investor.

While their initial offers may be higher, iBuyers tend to have stricter purchase criteria. They stick to homes in good condition that are easy to price based on similar properties in the area. They also charge service fees of 5–6%, plus repair costs that can greatly reduce the final offer price — often by tens of thousands of dollars.

Consider selling to an iBuyer if:

• You live in a city where iBuyers operate
• Your home needs only minor repairs
• You need to sell within a month or two
• You care more about convenience than getting the highest possible sale price.

🏡 Home trade-in services

Home trade-in services like Knock and Orchard are convenient for those who want to make an aggressive cash offer on a new home but need to sell their current home first.

Similar to a home equity line of credit (HELOC) or a bridge loan, these companies let you borrow against the equity in your current home to purchase a new one before you sell. This arrangement lets you avoid managing two risky transactions at once. If your home doesn't sell, they give you a cash offer as a backup.

The trade-offs usually include steep service and loan origination fees, on top of standard realtor commission and closing costs. And you can only access the backup cash offer after your home has been listed for several months.

Consider using a trade-in service if:

• You need to move within a month or two
• You're purchasing a home in a competitive market
• You can't finance a new home purchase without selling your current home
• You've already explored other options for selling and buying a house at the same time

How much will a cash buyer pay for my house?

Most cash buyers are looking to pay less than fair market value for your house.

To determine how much to pay for a property, investors often rely on the 70% rule. They pay no more than 70% of a home’s predicted after-repair value (the amount they expect to sell the home for) minus the cost of any repairs.

"Generally speaking," says Ryan David, owner of We Buy Houses In Pennsylvania, "investors offer about 70% of the value of the house, minus cost of repairs/updates, minus buying costs, minus holding costs, minus the estimated cost of utilities."

David also notes that a seasoned investor will also look at comparable properties in the area prior to determine the final price, which could adjust the final offer up or down.

That said, there are plenty of exceptions to the 70% rule, depending on the home, the market, and the buyer.

When an investor lands a deal, they usually do one of three things:

• Fix and flip the house for resale
• Turn the house into a rental property
• Set up a rent-to-own agreement with a tenant-buyer

An investor's exit plan also influences the offer price. This is because different investment strategies come with varying degrees of risk and short- versus long-term costs for the buyer.

Example cash offers on a house

Reviews of companies that buy houses for cash

Best overall

Clever Offers

Learn More

On listwithclever.com

Service Fee

None

Time to Close

Varies by offer type

Customer Rating

5/5 (2,950 reviews)

Editor's take

Locations

Contact

Clever Offers is a free service that matches you with fully vetted cash buyers who place competing offers on your home. It's an especially good fit when you want to sell fast but don't have time to track down offers on your own. 

How it works: Complete a short online form, and a member of the Clever Offers team will reach out to gather information on your property and discuss your options. 

Once you're on the same page, Clever will match you with investors from its network. Each investor will submit a tailored offer on your home, ensuring you have multiple options to choose from. 

Clever can also match you with a local partner agent for a professional home valuation, so you can compare cash offers against a realistic sale price on the market.

Once you decide on an offer, Clever stays with you through the process to answer any questions and ensure the buyer follows through on their side of the deal.

Pros

• You get multiple competing cash offers — for no added fees or commissions.
• You only deal with legitimate investors. They have proof of funds and a track record of closed deals.
• You have a dedicated point of contact to connect you with investors and walk you through the offer process.

Cons

• Even though investors are vetted, Clever still recommends having contracts reviewed by an attorney or CPA.
• Some deal types (like novations) may have longer closing times.
• Cash offers will likely be less than what you'd get selling with an agent.

Clever Offers is available nationwide.

Website: listwithclever.com

Phone: (833) 225-3837

Quick closing and reasonable fees

Opendoor

Learn More

On listwithclever.com

Service Fee

5%

Time to Close

14–60 days (flexible)

Customer Rating

4.3/5 (3,501 reviews)

Editor's take

Locations

Contact

Opendoor is a good option for home sellers who need a fast, predictable sale with minimal hassle. Its offer might be below the value of comparable homes on the market, but the difference may be worth it for people who value convenience and speed.

With Opendoor, you can get an initial offer within 24–48 hours and close in as little as 2 weeks. Additional perks include a flexible closing date and an easy selling process, which you complete almost entirely online (except for an exterior home inspection).

One thing to watch out for is repair costs. Recent Opendoor customers complain that its final offer is significantly lower than the initial estimate. The company makes a final offer after completing an inspection and factoring in repair costs.

Pros

• Opendoor offers are much closer to market value than a typical cash buyer.
• Opendoor is known for providing a convenient, hassle-free selling experience.
• You can choose and modify your closing date without penalty.

Cons

• Opendoor may lower your offer after an inspection, a common complaint among customers.
• Opendoor's 5% service fee is about what you'd pay selling with a realtor — though you'll likely net a lot less.

Opendoor is available in 56 major markets in AL, AZ, CA, CO, DC, FL, GA, ID, IN, KS, MA, MI, MN, MO, NC, NJ, NV, NY, OH, OK, OR, SC, TN, TX, UT, and VA.

Website: opendoor.com

Phone: (888) 352-7075

Most flexible closing date

Offerpad

Learn More

On listwithclever.com

Service Fee

5%

Time to Close

8–90 days (flexible)

Customer Rating

4/5 (2,706 reviews)

Editor's take

Locations

Contact

Offerpad is a decent choice if you need a fast cash offer and a specific closing date. Like it's main competitor, Opendoor, Offerpad makes offers slightly below market value in exchange for a hassle-free sale — meaning no repairs, showings, or negotiations.

Of all the iBuyers, Offerpad has the most flexibility when it comes to closing (8–90 days). It also provides some enticing perks, like free local moves and a free three-day extension on your closing date.

The potential downside is that repair costs can significantly lower your initial offer amount. When you accept an offer from Offerpad, the company sends out a representative to do a thorough inspection. After the inspection, you get a revised offer, which some customers complain is shockingly lower than the initial offer.

Pros

• Offerpad offers appealing perks like free local moves and a free 3-day extended stay.
• Offerpad offers more flexible options, like listing on the open market, getting a cash advance for repairs, and using its cash offer as a backup.

Cons

• Offerpad's 5% service fee is similar to what you'd pay a traditional realtor, but your sale price will probably be lower.
• Offerpad charges a 1% cancellation fee if you back out after accepting its final offer.
• Repair costs can be as much as 5% of your home value, according to customers.

Offerpad is currently available in 24 major markets in AZ, CO, FL, GA, IL, IN, KS, MO, NV, NC, OH, SC, TN, and TX.

Website: offerpad.com

Phone: (844) 388-4539

Decent for an as-is home sale

We Buy Houses

Learn More

On listwithclever.com

Service Fee

None

Time to Close

7–14 days

Customer Rating

4.5/5 (3,135 reviews)

Editor's take

Locations

Contact

Working with We Buy Houses is similar to working with a local private real estate investor. The company vets all its investors and gives them an exclusive license to operate in its territory, so they have an incentive to work hard in order to maintain their advantage.

We Buy Houses doesn't control how much its investors offer, but it does reserve the right to rescind licenses if investors don't meet its ethical standards.

Pros

• We Buy Houses vets investors before giving them a license.
• You can get an offer in 24–48 hours and close quickly.
• Customers across locations praise We Buy Houses' professionalism, communication, and smooth closing process.

Cons

• Since each office is independently run, service and offer quality may vary by location.
• A franchise like We Buy Houses may not offer different deal types available through private investors.
• You won't get multiple offers unless you contact other companies.

We Buy Houses operates in 200 markets in over 30 states.

Website: webuyhouses.com

Phone: (877) 932-8946

Sundae

Learn More

On listwithclever.com

Service Fee

$1,000 + variable % deducted from offer

Time to Close

10 days

Customer Rating

4.6/5 (683 reviews)

Editor's take

Locations

Contact

Sundae is one of the better options for cash offers because you can get multiple bids for your house and sell on your timeline.

Reviews of Sundae are mostly positive. Many customers claim the service is fast and easy, with better-than-expected offers on their homes (though not always). Sundae also offers cash advances of up to $10,000.

However, you may have to wait to get a workable offer. Sundae requires a full inspection before you can list your home on its marketplace, and it also has a three-day bidding period before you can accept an offer.

The company also takes a percentage of the winning bid, called a Buyer's Premium, which it deducts before you're shown the offer. So it's worth exploring other options to see what investors might offer you directly.

Pros

• You get multiple competing offers from investors in Sundae's network.
• You can choose your closing date within a 10–60 day window.
• Once you sign a purchase agreement, you can get up to a $10,000 cash advance to help with expenses before closing.

Cons

• Sundae's inspection and bidding process means it may take longer to get offers.
• Sundae deducts a percentage of each offer before it's shown to you, so you could have a better outcome working with investors directly.

Sundae operates in the following markets:

• California: Inland Empire, Los Angeles, Orange County, Sacramento, San Diego
• Texas: Dallas–Ft. Worth, Houston

Website: sundae.com

Phone: 1 (800) 214-4426

Good for an as-is home sale

We Buy Ugly Houses

Learn More

On listwithclever.com

Service Fee

None

Time to Close

3 weeks

Customer Rating

4.4/5 (1,356 reviews)

Editor's take

Locations

Contact

HomeVestors (the parent company of We Buy Ugly Houses) is a national cash buyer made up of independently owned and operated local franchises.

Each franchise can provide an initial offer within 48 hours and close in as little as 3 weeks. However, home sellers typically only receive about 70% of their home's value.

While many We Buy Ugly Houses locations have positive customer reviews, others have more complaints. Some people have accused the company of predatory practices targeting homeowners in financial distress.

Pros

• The company is well-established. It's been in business for 35 years.
• Many franchises have high ratings for their professionalism and efficiency.

Cons

• Customer reviews show that service and offer quality vary greatly across locations.
• The company has been accused of preying on distressed homeowners.
• Because you sell to HomeVestors directly, you don't have the benefit of competing offers.

HomeVestors has 1,000+ independently operated franchises across 46 states and Washington, DC.

Website:

• homevestors.com
• webuyuglyhouses.com 

Phone:

• (866) 949-2967
• (877) 366-1849

Good for comparing offers

HomeLight Simple Sale

Learn More

On listwithclever.com

Service Fee

None

Time to Close

As little as 10 days

Customer Rating

4.6/5 (1,178 reviews)

Editor's take

Locations

Contact

HomeLight Simple Sale — sometimes called HomeLight Cash Offers — is a free service that helps you get offers from cash buyers in HomeLight's network. According to the company website, its cash buyer network includes more than 100 investors.

HomeLight generates an estimated offer based on local property data. Actual offers from investors can be significantly lower.

While reviews for HomeLight are generally positive, few reviews specifically mention its cash offer program (most refer to its agent matching program). However, a few customers complained that they were bombarded with calls from HomeLight agents after requesting a cash offer.

Other reviewers mentioned that they initially contacted HomeLight for a cash offer but ended up listing with an agent. HomeLight may use its cash offer program primarily to generate leads for its agent network.

Pros

• HomeLight Simple Sale gives you a convenient way to compare options, including selling with an agent or getting a cash offer.
• HomeLight reviews are generally positive (though reviews for its cash offer program are harder to find).
• HomeLight gathers bids from its investor network within 48 hours, and you can close in under 2 weeks.

Cons

• HomeLight's initial estimate may be higher than what its investors actually offer.
• Customers complained about being bombarded with calls from HomeLight partner agents after requesting a cash offer.

HomeLight Simple Sale is available nationwide. In locations far from major metros, you may have fewer cash buyers to choose from.

Website: homelight.com/simple

Phone: (831) 498-1967

Best for sellers who are moving

MarketPro Homebuyers

Learn More

On listwithclever.com

Service Fee

None

Time to Close

7 days

Customer Rating

4.2/5 (448 reviews)

Editor's take

Locations

Contact

Like most cash buyers, MarketPro pays less than fair market value for homes. However, the company makes same-day offers and can close quickly. It even offers a free moving service, so it might be especially worth it if you're relocating.

According to customer reviews, you can expect a fair cash offer and a smooth, efficient selling process led by an experienced team.

Pros

• You can get a same-day offer and close in just seven days.
• MarketPro pays for all of your moving expenses — even if you're moving across the country.
• The company has solid reviews praising its fairness and customer service.

Cons

• MarketPro makes offers that are less than market value.

MarketPro Homebuyers operates in 18 metros across DC, MD, PA, and VA.

Website: marketprohomebuyers.com

Phone: (301) 994-7355

Good for an older home

Knock

Learn More

On listwithclever.com

Service Fee

2% service fee + realtor commission

Time to Close

Varies

Customer Rating

4.8/5 (833 reviews)

Editor's take

Locations

Contact

Knock allows customers to purchase a new home before selling their old one. Through its HomeSwap program, Knock lets you borrow against the equity in your home to purchase a new home before you sell. Once you move into your new place, you'll sell your previous home on the open market with a traditional real estate agent.

As part of their program, Knock will cover your old mortgage until your old home sells — but you'll still eventually have to settle up, and costs can add up fast if your home sits on the market. The company charges a 2% contract fee on top of loan origination and realtor costs.

While somewhat expensive, Knock could still be a good option if you're selling a home that needs repairs — it offers up to a $35,000 cash advance for home improvements.

Pros

• Knock gives sellers the flexibility to purchase a new home before selling their old one.
• Knock can advance up to $35,000 for home improvements prior to listing.

Cons

• To take advantage of the program, you need to have a fair amount of equity in your home.
• Knock charges a 2% contract fee on top of the commission you pay to an agent. You may also be responsible for loan origination fees.

Knock operates in select cities in these states: AZ, CA, CO, FL, GA, IL, MD, MI, MN, NC, OR, SC, TN, and WA.

Website: knock.com

Phone: (866) 996-1695

Solid trade-in option

Orchard

Learn More

On listwithclever.com

Service Fee

1.9% service fee + 6% brokerage fee

Time to Close

14–60 days (flexible)

Customer Rating

4.4/5 (614 reviews)

Editor's take

Locations

Contact

Orchard Real Estate is a home trade-in service, meaning it can front you the equity from your current home to make a cash offer on a new house before you sell.

Once you're ready to move, an Orchard agent will take care of the entire listing process, including repairs and staging. If your old home doesn’t sell within 120 days, you can accept Orchard’s guaranteed cash offer as a backup.

Orchard's business model gives you the security of having a guaranteed offer if your home doesn’t sell on the open market. But Orchard’s cash offers tend to be low, and it has strict standards for the homes it accepts compared to traditional cash buyers. Homes valued under $200,000 or built before 1920 don't qualify for its program.

Orchard also charges high fees compared to competitors. To use its Move First program, you pay a 6% brokerage fee and a 1.9% program fee, plus traditional closing costs.

Pros

• You can access up to 90% of your home's equity to make an offer on a new house before you sell.
• If your home doesn't sell in 120 days, you can use Orchard's guaranteed cash offer as a backup.
• Orchard offers interest-free funding for home improvements.

Cons

• Orchard's 6% service fee is higher than what you'd pay an iBuyer or even a realtor in many cases.
• Orchard's cash offer will be much lower than what you'd get on the open market.

Orchard operates in these locations:

• Colorado: Denver
• Georgia: Atlanta
• Texas: Austin, Dallas–Fort Worth, Houston, San Antonio

Website: orchard.com

Phone: (844) 515-9880

Find companies that buy houses for cash near you

Sometimes your best option is a local cash buyer — someone who has a solid reputation for making fair offers to sellers in difficult situations.

If you're looking for a company that pays cash for houses in your local market, we've put together comprehensive guides for all 50 states and Washington, DC.

Pros and cons of selling your house for cash

Cash offers vs. traditional home sales

Selling to a cash home buyer can save you a lot of time and help you avoid expenses like repair bills and closing costs, but the ease and convenience of selling your home to a business could cost you thousands of dollars.

"I always tell sellers that they'll be better off if they get an agent," says Don Chambers, an experienced real estate investor and owner of Double K Property Management.

"If you get an agent and list it with the MLS, you're going to expose it to many more buyers. And when you get many more buyers, you'll get a higher price. It does take time, and a lot of times they need to fix the house up to get top dollar. But even if they don't want to fix it, if they just get an agent, list it, and wait two or three months for several buyers to make offers, they'll get the most money."

If your priority is a quick, predictable sale with minimal hassle, selling to a cash buyer might be the best solution — as long as you're willing to leave as much as 30–50% of your home's value on the table.

However, if your priority is getting top dollar for your home, the traditional method of selling on the open market with a real estate agent is still the best bet.

If you have some flexibility with your timeline, you can also explore creative financing options — such as novation agreements and rent-to-own scenarios — available through cash offer services like Clever Offers.

Are companies that buy houses for cash legit?

The short answer is: Yes, most companies that offer to buy your house for cash are legitimate businesses.

However, whether you work with a national brand like "We Buy Houses" or a local real estate investor, you should vet cash offers just like you would a traditional offer on a home.

Check out the cash buyer's reputation online, request proof of funds, and make sure they give you time to have a contract reviewed before you sign. Look for established investors who have a solid reputation and a paper trail of past deals. Others may be new to real estate investing and not have the knowledge, experience, or professionalism to follow through.

Some sellers may feel ripped off by the low offer they receive from a cash buyer. Investors, including "we buy houses" companies, base their offers on how much it will cost to renovate and sell for a profit.  iBuyers pay more but charge sellers for estimated repair costs. If the offer isn't in line with your goals, it's best to simply walk away.

Investor Ryan David says "we buy houses" companies will always pay less than you'd get on the open market, a fact they should be upfront about. "This is no secret," says David. "It's the truth and anyone that says otherwise is simply not being honest."

How does a cash offer on a house work?

In general, companies that buy houses for cash purchase properties for bargain prices, complete any necessary repairs, and then either rent them or resell them on the open market for a profit.

Here’s how a cash offer typically works if you're a seller:

1. Submit information about your home. Most cash home buyers collect basic information about your home through an online form or over the phone. In some cases, you may receive an initial estimate of your cash offer within 24–48 hours.
2. Get an on-site inspection. A third-party inspector or local representative from the company (or both) completes an on-site inspection. Your final offer is adjusted to account for any necessary repairs.
3. Review the final offer. It's best to have a real estate attorney or CPA review the contract to ensure the deal is fair and you're protected if the buyer backs out. You also want to ask for proof of funds — such as bank statements, a letter from the buyer's financial institution, or recent sales contracts — to ensure the buyer has the cash to close the deal.
4. Accept the offer. If you decide to accept, you sign a purchase agreement specifying the terms of sale.
5. Complete any necessary title work. "If a seller has a cloud on their title, such as a lien or other impediment preventing the seller and buyer from entering a contract, the seller will be expected to rectify this in order to move forward with the sale," says Mike Bennett, Operations Manager at Clever Offers. He notes that any debts associated with property liens can usually be paid from the sale proceeds.
6. Close on your schedule. Unlike traditional buyers who require a mortgage approval, cash buyers can move fast and offer more flexible timing. You could have cash in hand in as little as 10 days or choose a later date. In certain arrangements, such as a novation agreement — where an investor fixes and flips the home on your behalf — closing the transaction may take longer to account for repair time.

Red flags to look out for when selling your house for cash

Inability to show proof of funds

Jack Pinard, COO of Summit Buys Houses, says sellers should make sure the buyer actually has the cash to pay for the home. Proof of funds can be a printed bank statement. Or it can be a letter from a financial institution that indicates the buyer's readily available funds.

Mike Bennett advises sellers to take a similar approach to how Clever vets its investors. As part of our onboarding process, he says, "we look through an investor's history. We make sure that they have consistent closings over the last year and that they have the liquidity to move forward and close on a deal."

"If a buyer cannot provide proof of funds, stay far away from them," Bennett says. "They likely have little to no real experience as an investor."

Low or no earnest money deposit

In addition to proof of funds, says Pinard, "a seller should insist on a significant deposit from their buyer. If they cannot give you a sizable deposit, that's a red flag."

Brian Wittman, owner of SILT Real Estate and Investments, says deposits should be in line with the earnest money a buyer puts down when buying a home with an agent. "When selling a home through an agent, there is still an expectation of at least 1% and sometimes up to 5% depending on how much the buyer wants the home," says Wittman.

However, Bennett notes that "deposits can vary depending on the offer type and who is making the deal."

"If the buyer is buying direct," says Bennett, "typical cash sale standards are $5–10k earnest money deposit. However, a wholesaler may only put down $1,000, and then have their buyer place $10k themselves when assigning the contract."

"In a novation agreement," Bennett continues, "instead of a traditional earnest money deposit, the investor will put those funds into repairing the property before listing it."

Regardless of the type and amount of the deposit, he says,, "the overall theme here remains true: There should always be a deposit in a cash sale."

Lengthy closing timeline

Most cash buyers can close quickly, often in two weeks or less. If a buyer specifies a closing date more than a few weeks after you sign the contract, you may be dealing with a wholesaler.

In real estate investing, a wholesaler is essentially a middleman. They sign a purchase agreement with a seller, then sell the contract to another investor for a slightly higher price — pocketing the difference. While some wholesalers have large networks of reliable buyers, others are making up a plan as they go, putting the deal at risk of falling through.

"I've never seen a regular sale take more than 14 days. So if it's more than 14 days, that's a good sign that they're a wholesaler," says investor Don Chambers.

"Many times, wholesalers get a contract with a closing of six weeks, two months, something like that," Chambers continues. "During that time, they reach out on Facebook groups and other forums trying to find someone to buy the house for a little more than what their contract is. 

"That's fine if they let everybody know that, but a lot of times you've got a homeowner who's ... selling at a discount because they've got some personal situation where they need the money fast. And then six weeks or two months go by, and this wholesaler can't find a buyer, and then the whole thing falls apart."

Pressure to sign a contract on the spot

"Sellers should avoid buyers who pressure them to sign a contract prior to having it reviewed," says Bennett. "This would be a big red flag."

"Some investors try to sneak in unfair contract terms like unreasonably long due diligence periods, low earnest money deposits, or clauses that can get them their earnest money back even after the due diligence phase," adds Chambers. These loopholes leave the seller without protection or compensation if the deal falls through.

"I've bought several properties from people who had tried to sell to a wholesaler and it fell through," Chambers says. "I bought a house from a woman, it was like a $400,000 house, and the previous buyer only offered her $50 earnest money in the contract — which he never even paid."

Just like with a standard real estate transaction, says Bennett, "sellers are advised to have legal counsel or a CPA review their contract before signing to ensure the seller is protected and has favorable terms."

Tips for vetting 'we buy houses' companies

• Ask for references and contact them to make sure they're legit.
• Look for reviews on Google and the Better Business Bureau.
• Ask them for proof of funds if the investor makes a cash offer.
• Never pay any fees — a legit real estate investor shouldn't ask you to pay anything upfront when they make an offer.
• Never feel pressured to accept their offer — you can walk away if you're uncomfortable with the deal.

FAQ about companies that pay cash for houses

Methodology

To compile our list of the best "we buy houses" companies, we evaluated customer sentiment based on online reviews. We also looked at the time it takes to make an offer and how quickly the company can close on the sale.

For iBuyers and home trade-in companies, we examined customer experience based on online reviews. We also considered fees and the company's speed and flexibility around closing windows.

For this article, we also spoke to the following experts:

• Mike Bennett, Operations Manager at Clever Offers
• Don Chambers, Owner of Double K Property Management
• Ryan David, Owner and Lead Investor at We Buy Houses In Pennsylvania
• Jack Pinard, COO of Summit Buys Houses
• Brian Wittman, Owner and CEO of SILT Real Estate and Investments, LLC

We regularly update this article with the latest information about companies that buy houses for cash.

Related articles

Is Opendoor Worth It (And Does It Pay a Fair Price)?

Due to their 5% service fee and lower-than-market offers, Opendoor may not be worth it for all home sellers. However, sellers who prioritize speed and convenience might still be interested in the service.

Offerpad vs. Opendoor vs. Knock (An In-Depth Comparison)

Interested in selling your home to an iBuyer? Learn all you need to know about Opendoor, Offerpad, and Knock to determine which option is right for you.

Discount Real Estate Brokers: How to Find a Top Realtor for Less

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The post 10 Best Companies That Buy Houses for Cash appeared first on Semya-Moya.

The top iBuyers and cash offer companies

Company	Type	Customer Rating	Service Fee	Time to Close
Best overall Clever Offers	Cash offer network	5/5 (2,950 reviews)	None	Varies by offer type	Learn More On listwithclever.com
Offerpad	iBuyer	4/5 (2,706 reviews)	5%	8–90 days (flexible)	Learn More
Opendoor	iBuyer	4.3/5 (3,501 reviews)	5%	14–60 days (flexible)	Learn More
Orchard	Home trade-in	4.4/5 (614 reviews)	1.9% service fee + 6% brokerage fee	14–60 days (flexible)	Learn More
Knock	Home trade-in	4.8/5 (833 reviews)	2% service fee + realtor commission	Varies	Learn More
HomeLight Simple Sale	Cash offer network	4.6/5 (1,178 reviews)	None	As little as 10 days	Learn More

iBuyers and cash offer companies can help you sell your house fast for cash. Each company differs in offer amounts, closing timelines, and service fees.

The pandemic housing boom saw a steep rise in iBuying activity, but now Offerpad and Opendoor are the only remaining iBuyers operating nationwide. Other iBuyers, including Zillow Offers and RedfinNow, have shut down in recent years.

Fortunately, other cash home buying companies can also help you sell your home fast. Some companies, like Clever Offers, let you compare multiple cash offers. Others offer home trade-in services, enabling you to purchase and move into a new house before you sell your old one.

We included these companies alongside traditional iBuyers so you can make the best choice for your home sale.

Best overall

Clever Offers

Learn More

On listwithclever.com

Service Fee

None

Time to Close

Varies by offer type

Customer Rating

5/5 (2,950 reviews)

Editor's take

Locations

Contact

Clever Offers is a free service that matches you with fully vetted cash buyers who place competing offers on your home. It's an especially good fit when you want to sell fast but don't have time to track down offers on your own. 

How it works: Complete a short online form, and a member of the Clever Offers team will reach out to gather information on your property and discuss your options. 

Once you're on the same page, Clever will match you with investors from its network. Each investor will submit a tailored offer on your home, ensuring you have multiple options to choose from. 

Clever can also match you with a local partner agent for a professional home valuation, so you can compare cash offers against a realistic sale price on the market.

Once you decide on an offer, Clever stays with you through the process to answer any questions and ensure the buyer follows through on their side of the deal.

Pros

• You get multiple competing cash offers — for no added fees or commissions.
• You only deal with legitimate investors. They have proof of funds and a track record of closed deals.
• You have a dedicated point of contact to connect you with investors and walk you through the offer process.

Cons

• Even though investors are vetted, Clever still recommends having contracts reviewed by an attorney or CPA.
• Some deal types (like novations) may have longer closing times.
• Cash offers will likely be less than what you'd get selling with an agent.

Clever Offers is available nationwide.

Website: listwithclever.com

Phone: (833) 225-3837

Most flexible closing date

Offerpad

Learn More

On listwithclever.com

Service Fee

5%

Time to Close

8–90 days (flexible)

Customer Rating

4/5 (2,706 reviews)

Editor's take

Locations

Contact

Offerpad is a decent choice if you need a fast cash offer and a specific closing date. Like it's main competitor, Opendoor, Offerpad makes offers slightly below market value in exchange for a hassle-free sale — meaning no repairs, showings, or negotiations.

Of all the iBuyers, Offerpad has the most flexibility when it comes to closing (8–90 days). It also provides some enticing perks, like free local moves and a free three-day extension on your closing date.

The potential downside is that repair costs can significantly lower your initial offer amount. When you accept an offer from Offerpad, the company sends out a representative to do a thorough inspection. After the inspection, you get a revised offer, which some customers complain is shockingly lower than the initial offer.

Pros

• Offerpad offers appealing perks like free local moves and a free 3-day extended stay.
• Offerpad offers more flexible options, like listing on the open market, getting a cash advance for repairs, and using its cash offer as a backup.

Cons

• Offerpad's 5% service fee is similar to what you'd pay a traditional realtor, but your sale price will probably be lower.
• Offerpad charges a 1% cancellation fee if you back out after accepting its final offer.
• Repair costs can be as much as 5% of your home value, according to customers.

Offerpad is currently available in 24 major markets in AZ, CO, FL, GA, IL, IN, KS, MO, NV, NC, OH, SC, TN, and TX.

Website: offerpad.com

Phone: (844) 388-4539

Quick closing and reasonable fees

Opendoor

Learn More

On listwithclever.com

Service Fee

5%

Time to Close

14–60 days (flexible)

Customer Rating

4.3/5 (3,501 reviews)

Editor's take

Locations

Contact

Opendoor is a good option for home sellers who need a fast, predictable sale with minimal hassle. Its offer might be below the value of comparable homes on the market, but the difference may be worth it for people who value convenience and speed.

With Opendoor, you can get an initial offer within 24–48 hours and close in as little as 2 weeks. Additional perks include a flexible closing date and an easy selling process, which you complete almost entirely online (except for an exterior home inspection).

One thing to watch out for is repair costs. Recent Opendoor customers complain that its final offer is significantly lower than the initial estimate. The company makes a final offer after completing an inspection and factoring in repair costs.

Pros

• Opendoor offers are much closer to market value than a typical cash buyer.
• Opendoor is known for providing a convenient, hassle-free selling experience.
• You can choose and modify your closing date without penalty.

Cons

• Opendoor may lower your offer after an inspection, a common complaint among customers.
• Opendoor's 5% service fee is about what you'd pay selling with a realtor — though you'll likely net a lot less.

Opendoor is available in 56 major markets in AL, AZ, CA, CO, DC, FL, GA, ID, IN, KS, MA, MI, MN, MO, NC, NJ, NV, NY, OH, OK, OR, SC, TN, TX, UT, and VA.

Website: opendoor.com

Phone: (888) 352-7075

Solid trade-in option

Orchard

Learn More

On listwithclever.com

Service Fee

1.9% service fee + 6% brokerage fee

Time to Close

14–60 days (flexible)

Customer Rating

4.4/5 (614 reviews)

Editor's take

Locations

Contact

Orchard Real Estate is a home trade-in service, meaning it can front you the equity from your current home to make a cash offer on a new house before you sell.

Once you're ready to move, an Orchard agent will take care of the entire listing process, including repairs and staging. If your old home doesn’t sell within 120 days, you can accept Orchard’s guaranteed cash offer as a backup.

Orchard's business model gives you the security of having a guaranteed offer if your home doesn’t sell on the open market. But Orchard’s cash offers tend to be low, and it has strict standards for the homes it accepts compared to traditional cash buyers. Homes valued under $200,000 or built before 1920 don't qualify for its program.

Orchard also charges high fees compared to competitors. To use its Move First program, you pay a 6% brokerage fee and a 1.9% program fee, plus traditional closing costs.

Pros

• You can access up to 90% of your home's equity to make an offer on a new house before you sell.
• If your home doesn't sell in 120 days, you can use Orchard's guaranteed cash offer as a backup.
• Orchard offers interest-free funding for home improvements.

Cons

• Orchard's 6% service fee is higher than what you'd pay an iBuyer or even a realtor in many cases.
• Orchard's cash offer will be much lower than what you'd get on the open market.

Orchard operates in these locations:

• Colorado: Denver
• Georgia: Atlanta
• Texas: Austin, Dallas–Fort Worth, Houston, San Antonio

Website: orchard.com

Phone: (844) 515-9880

Good for an older home

Knock

Learn More

On listwithclever.com

Service Fee

2% service fee + realtor commission

Time to Close

Varies

Customer Rating

4.8/5 (833 reviews)

Editor's take

Locations

Contact

Knock allows customers to purchase a new home before selling their old one. Through its HomeSwap program, Knock lets you borrow against the equity in your home to purchase a new home before you sell. Once you move into your new place, you'll sell your previous home on the open market with a traditional real estate agent.

As part of their program, Knock will cover your old mortgage until your old home sells — but you'll still eventually have to settle up, and costs can add up fast if your home sits on the market. The company charges a 2% contract fee on top of loan origination and realtor costs.

While somewhat expensive, Knock could still be a good option if you're selling a home that needs repairs — it offers up to a $35,000 cash advance for home improvements.

Pros

• Knock gives sellers the flexibility to purchase a new home before selling their old one.
• Knock can advance up to $35,000 for home improvements prior to listing.

Cons

• To take advantage of the program, you need to have a fair amount of equity in your home.
• Knock charges a 2% contract fee on top of the commission you pay to an agent. You may also be responsible for loan origination fees.

Knock operates in select cities in these states: AZ, CA, CO, FL, GA, IL, MD, MI, MN, NC, OR, SC, TN, and WA.

Website: knock.com

Phone: (866) 996-1695

Good for comparing offers

HomeLight Simple Sale

Learn More

On listwithclever.com

Service Fee

None

Time to Close

As little as 10 days

Customer Rating

4.6/5 (1,178 reviews)

Editor's take

Locations

Contact

HomeLight Simple Sale — sometimes called HomeLight Cash Offers — is a free service that helps you get offers from cash buyers in HomeLight's network. According to the company website, its cash buyer network includes more than 100 investors.

HomeLight generates an estimated offer based on local property data. Actual offers from investors can be significantly lower.

While reviews for HomeLight are generally positive, few reviews specifically mention its cash offer program (most refer to its agent matching program). However, a few customers complained that they were bombarded with calls from HomeLight agents after requesting a cash offer.

Other reviewers mentioned that they initially contacted HomeLight for a cash offer but ended up listing with an agent. HomeLight may use its cash offer program primarily to generate leads for its agent network.

Pros

• HomeLight Simple Sale gives you a convenient way to compare options, including selling with an agent or getting a cash offer.
• HomeLight reviews are generally positive (though reviews for its cash offer program are harder to find).
• HomeLight gathers bids from its investor network within 48 hours, and you can close in under 2 weeks.

Cons

• HomeLight's initial estimate may be higher than what its investors actually offer.
• Customers complained about being bombarded with calls from HomeLight partner agents after requesting a cash offer.

HomeLight Simple Sale is available nationwide. In locations far from major metros, you may have fewer cash buyers to choose from.

Website: homelight.com/simple

Phone: (831) 498-1967

Is selling to an iBuyer worth it?

If your home is eligible, selling to an iBuyer can be a simple, hassle-free alternative to selling your home on the open market.

For example, if you need to move quickly or if you have inherited a house, an iBuyer can be a way to get cash for the property fast while avoiding home showings and listings. But you may be sacrificing some cash for the convenience of going with an iBuyer.

Before you close with an iBuyer, the company will order a home inspection, often asking for a reduction in price based on repairs it deems necessary. The final offer on your home, therefore, will likely be less than you'd get on the open market, where you may have multiple offers from interested buyers instead of one take-it-or-leave-it offer from an iBuyer.

Jesse Zappia, who sold his North Carolina home to Opendoor in 2022, recalled a nearly $40,000 difference between Opendoor's preliminary and final offers: “Their initial offer was somewhat closer to $600,000. And then when they came back and gave me a final offer, it was, I think, $560,000 or something. So it was a significant jump.”

"We were in a position where taking less money was worth it for us," said Zappia. "If you go in with that mindset, it's great. But if we were in a scenario where we weren't as timebound, I think going the traditional route is probably the way we would go, just to get better profitability out of it."

How to choose an iBuyer

Each iBuyer company has unique perks that might or might not matter to you when you're getting ready to sell. Some factors to consider include:

• Closing times: What's the minimum/maximum number of days the iBuyer can allow for closing on your home?
• Service fees: How much does the company charge (percent of the sale price)? Are there any additional fees?
• Backup options: Can you stay in your home for a couple of extra weeks if your plans change? Will the company be accommodating if you need to cancel the sale?

What types of homes do iBuyers purchase?

iBuyer companies try to earn a profit by reselling homes — so they’re picky about what homes qualify. In a nutshell, they want to acquire homes they believe they can sell quickly and for a good price.

We reviewed the terms of service for the biggest iBuyer companies and found that most share similar criteria:

Most iBuyer companies also look for homes that are owner-occupied and in good condition.

For example, an iBuyer might be happy to repaint your home or complete minor repairs — but major water damage, a cracked foundation, or unpermitted additions might cause them to back out.

If you’re not sure whether your home will qualify, it never hurts to submit your information. In most cases, you’ll receive your cash offer (or rejection) within 24–48 hours.

Finally, keep in mind that these are general criteria and exceptions do exist. Practically every iBuyer company offers a disclaimer that their practices vary according to the specific real estate market you’re in.

Which iBuyer companies are available near me?

iBuyers are available in most states, but they typically operate only in major metropolitan areas. They also tend to focus on cities in the south and along the east and west coasts. As of 2023, Opendoor operates in over 50 markets, while Offerpad operates in 28.

Summary

If you want to sell fast for cash, either of the top iBuyer companies could work for you. If you have some extra time, you might consider a home trade-in service. This service gives you the security of a guaranteed sale — but often at the expense of high fees.

Before accepting an offer, you’ll want to compare nationwide brands like Opendoor and Offerpad to local cash buyers. You'll also want to know what your home could be worth on the open market.

You can compare offers on your own, with the help of a realtor, or through a free service like Clever Offers.

FAQ about iBuyer companies

Related reading

Opendoor Reviews: Fees, Repair costs, and Common Complaints

Find out what real customers think with Opendoor reviews, details about instant offer fees, and other frequently asked questions.

What Is An iBuyer?

An iBuyer is a real estate company that makes near-instant offers on houses. Learn more about how selling your home to an iBuyer works, and how it compares to a traditional sale.

10 Best Companies That Buy Houses for Cash

Looking to sell your home fast? From "we buy houses" companies to iBuyers like Opendoor, we found the best companies that buy houses for cash.

The post The Top 6 iBuyer Companies to Buy Your Home appeared first on Semya-Moya.

How much does Offerpad charge?

Should you consider an offer from Offerpad?

How do Offerpad fees compare with top competitors?

How much does Offerpad charge for repairs?

• Agree to provide a repair credit, which deducts the full cost of repairs from Offerpad’s cash offer
• Hire a contractor to complete the repairs to Offerpad’s specifications

Offerpad reviews about repairs

Does Offerpad charge hidden fees?

• Accept the offer and agree to the repair credit
• Negotiate over the repair credit
• Reject the offer and walk away

Are closing costs included in Offerpad fees?

How much do Offerpad's extra services cost?

• Extended Stay. Offerpad allows you to stay in your home for up to three days after closing. Offerpad would hold $3,000 of your proceeds as a security deposit, to be refunded after you move out.
• Local Move Program. If you’re moving within a 50-mile radius, Offerpad will pay for your moving services. The company partners with local movers and will pay them directly to move homes up to 2,800 sq. ft. You'll be responsible for the packing and any additional costs, such as extra insurance for expensive items.

Can you negotiate with Offerpad?

The post Offerpad Fees: How to AVOID Hidden Costs appeared first on Semya-Moya.

But as affordability becomes an increasing concern for first-time home buyers, how about the places that best combine good-paying jobs with affordable homes?

While not an easy combination to find these days, we combed through a list of more than 400 U.S. cities to pick out the hidden gems.

Here are the best-performing cities where you can still afford to buy a house.

👉 JUMP: Large city rankings | Small city rankings

About the city rankings

Earlier this year, the Milken Institute published its perennial list of Best-Performing Cities in the U.S. The rankings look at economic "performance" indicators like job growth, wage growth, and high-tech job concentration, as well as "opportunity" indicators like broadband access and housing affordability.

Well-known tech hubs like Austin, San Jose, and Seattle predictably rank within the top tier for economic performance. However, their out-of-this-world housing costs put homeownership out of reach for the average earner. So, we scoured the rankings for lesser-known cities offering a rare combination of economic vitality and affordability.

Among the 400 cities included in the report, we found seven large cities and 12 small cities that scored within the top 50 for overall economic performance, while also ranking in the top 100 for housing affordability within their size category.

In addition to the data provided by the Milken Institute, which shows wage growth and housing affordability rankings ending in 2020, we turned to the U.S. Bureau of Labor Statistics(BLS) to find the most recent year's wage information. We also pulled from Zillow's Home Value Index to display the current typical home price for each area, as of August 2022.

Finally, we pored over dozens of resources and data points to find out what makes these 19 cities great places to live and work.

Large Cities

1. Fayetteville-Springdale-Rogers, AR-MO

• Best-performing cities ranking: 8 (+7 from 2021)
• 5-year job growth ranking: 9
• 5-year wage growth ranking: 18
• Housing affordability ranking: 94
• Average weekly wages: $997
• Typical home price: $312,863

Our top city is Fayetteville, which best combines economic vitality, good jobs and housing affordability. The Milken study ranked seven cities ahead of it, but they didn't make our list due to their home prices. Known as the birthplace of Walmart, this quiet city has experienced a tremendous transformation over the past several years — and that growth is expected to continue through the next several decades.

Fayetteville's rising prestige is owed in part to strong performances across wage, job, and tech growth. However, the home of the University of Arkansas also has great amenities — including a lively arts, festival, and food scene. Nestled in the Ozarks, Fayetteville is a natural fit for outdoor enthusiasts who can take advantage of an abundance of state parks, green spaces, and walking trails. With a little something for everyone, Fayetteville currently ranks 7th among U.S. News' Best Place to Live.

2. Huntsville, AL

• Best-performing cities ranking: 12 (-2 from 2021)
• 5-year job growth ranking: 21
• 5-year wage growth ranking: 28
• Housing affordability ranking: 56
• Average weekly wages: $1,413
• Typical home price: $308,218

After leaping 49 spots on the Milken list to achieve a top-tier ranking in 2021, Huntsville, AL, dropped two spots to settle into 12th place in 2022. The drop in ranking was partly driven by poor job growth during the second year of the pandemic. However, the city still ranks near the top for 5-year job and wage growth, making it one of the 20 fastest-growing cities in the U.S.

With those factors in mind, we put Huntsville second on our list of hidden gems.

With 40% of the adult population holding a bachelor's degree or higher, Huntsville boasts the highest percentage of college graduates in its state. It's also a well-known aerospace hub. Major employers include the Redstone Arsenal (i.e., "the Pentagon of the South"), Boeing, and Northrop Grumman.

Among top-performing large cities, Huntsville is by far the most affordable for housing, ranking 56 out of 200. The city's typical home price of $308,218 is well below the national median, while weekly wages are fairly on par with the national average of $1,418. The city also has a growing list of amenities, including a great restaurant and craft brewery scene. As of 2022, Huntsville stands in the top spot among U.S. News' Best Places to Live.

3. McAllen, TX

• Best-performing cities ranking: 18 (+85 from 2021)
• 5-year job growth ranking: 34
• 5-year wage growth ranking: 82
• Housing affordability ranking: 18
• Average weekly wages: $1,117
• Typical home price: $273,957

Coming in third on our list is fast-growing McAllen, Texas. It made the second-largest leap of any large city on the Milken list, advancing 85 slots from 2021 to 2022. The city — which ranked particularly well for short- and long-term job growth (25th and 34th, respectively) — was bested only by Lubbock, TX, which rose 91 slots in 2022.

While McAllen is known primarily as a border town, the vibrant bicultural city has a lot to offer. Located approximately 70 miles from the Gulf coast along the U.S./Mexico border, the city is popular for both water sports and bird watching. McAllen's shopping scene also draws visitors from both sides of the border to winter there every year. To top off its list of charms, McAllen currently ranks #138 among U.S. News' Best Places to Live.

4. Lincoln, NE

• Best-performing cities ranking: 26 (+54 from 2021)
• 5-year job growth ranking: 99
• 5-year wage growth ranking: 83
• Housing affordability ranking: 52
• Average weekly wages: $1,117
• Typical home price: $273,957

Lincoln's strong economy and reasonable home prices put it at No. 4 on our list. In 2022, it climbed 54 positions to nab the 26th spot on Milken Institute's list of best-performing cities. Home to both the University of Nebraska and Nebraska Wesleyan University, this thriving college town ranks 4th among large cities for broadband access. It also boasts high marks for short-term wage growth (up 6% in 2021) and a rising share of high-tech GDP.

Apart from a strong economy, Lincoln's generous park space, cool eateries, and hip art scene offer the city's notably friendly residents a great quality of life. In fact, Livability ranks Lincoln the 54th best place to live in the U.S.

5. Fort Worth-Arlington, TX

• Best-performing cities ranking: 40 (-5 from 2021)
• 5-year job growth: 33
• 5-year wage growth ranking: 77
• Housing affordability ranking: 78
• Average weekly wages: $1,483
• Typical home price: $329,047

Fifth on our list is Fort Worth-Arlington, TX, which ranks 40th for overall economic performance but also has a surprisingly affordable cost of living for a city of its size. While an easy distance from the hustle and bustle of nearby Dallas, the typical home in Fort Worth-Arlington costs more than $60,000 less.

And, the Fort Worth-Arlington area has plenty to offer in its own right. The area is home to several universities, including the University of Texas at Arlington and Texas A&M University School of Law. It also houses multiple museums and art galleries, the Texas Rangers, the Dallas Cowboys, and — for the intelligentsia among us — Mensa International.

6. Lubbock, TX

• Best-performing cities ranking: 45 (+91 from 2021)
• 5-year job growth: 66
• 5-year wage growth ranking: 73
• Housing affordability ranking: 28
• Average weekly wages: $1,022
• Typical home price: $207,472

Lubbock, TX, places 6th on our list of hidden gems. Home to Texas Tech, Lubbock boasts a young, talented workforce that draws plenty of employers to the city. Milken Institute ranked the city #45 on its list of best-performing cities in 2022, a jump of 91 spots from last year's ranking.

In addition to ranking 3rd among all large cities for broadband access, Lubbock has also made strides in short-term job and wage growth (placing 27th and 39th in those categories, respectively). The city's diverse economy holds job opportunities in education, healthcare, manufacturing, agriculture, and trade.

Drawing a growing number of millennials, Lubbock offers an array of affordable homes for first-time buyers. Typical home prices in the city range right around $207,000.

7. Atlanta-Sandy Springs-Roswell, GA

• Best-performing cities ranking: 47 (-26 from 2021)
• 5-year job growth ranking: 47
• 5-year wage growth ranking: 59
• Housing affordability ranking: 91
• Average weekly wages: $1,436
• Typical home price: $383,153

Coming in at 7th on our list is the sprawling city of Atlanta. Even after dropping 26 spots in Milken Institute's performance rankings this year, Atlanta remains well within the top 50 for both 5-year job growth and short-term wage growth. Average weekly pay in the city grew an impressive 7% in 2021, and the city also ranks 35th for high-tech job concentration.

While the typical home price in Atlanta is slightly higher than the national median of $356,026, wages are also above the national mean — keeping homes relatively affordable.

Atlanta's stable job market has attracted a growing number of millennials, which now make up 25% of the city's population. The city is perennially on the list of the country's fastest-growing metros. Ranked the 95th best place to live in the U.S., Atlanta also has a world-class food scene, great hiking and biking along the beltline, attractions like a world-famous aquarium and Botanical Gardens, and plenty of destinations for shopping, arts, culture, and entertainment.

Top small cities

1. Champaign-Urbana, IL

• Best-performing cities ranking: 9 (+97 from 2021)
• 5-year job growth ranking: 60
• 5-year wage growth ranking: 77
• Housing affordability ranking: 27
• Average weekly wages: $1,110
• Typical home price $185,891

With a typical home price of just $185,891, Champaign-Urbana is by far the most affordable for housing to make into the Milken Institute's top 10. After climbing a staggering 97 spots in 2022, the city finds itself joining the ranks of much pricier locales like Logan, UT, Coeur d'Alene, ID, and Bend, OR. That places it in our top spot among small cities for affordable hidden gems.

Home to one of the largest public research universities in the nation, Champaign-Urbana has strong ties to the tech industry. The university, which serves as the area's largest employer, is also home to 60 active startups.

While typical weekly wages in Champaign-Urbana fall short of the national average, the city's affordable housing market makes buying a home there attainable. As an added perk to the city's strong economy, Livability placed Champaign-Urbana among the 100 Best Places to Live in America in both 2020 and 2021.

2. Bloomington, IN

• Best-performing cities ranking: 18 (+20 from 2021)
• 5-year job growth ranking: 73
• 5-year wage growth ranking: 21
• Housing affordability ranking: 63
• Average weekly wages: $1,029
• Typical home price: $282,523

Home to the well-regarded Indiana University, Bloomington, IN, climbed 20 spots in 2022 to rank 18th overall among the Milken Institute's list of best-performing small cities.

Bloomington ranks particularly well in high-tech concentration (4th among small cities) and annual wage growth (up 7.7% in 2021). With more than 30% of the 85,000-person population having a master's degree or higher, the city's highly educated workforce finds ample employment in education and health care.

However, life in Bloomington also includes a healthy amount of leisure and play. With a charming urban/suburban feel — and plenty of lakes, forests, and parks surrounding the city center — Bloomington ranks 92nd on Livability's top 100 best places to live in 2022.

3. Amarillo, TX

• Best-performing cities ranking: 24 (+87 from 2021)
• 5-year job growth ranking: 77
• 5-year wage growth ranking: 65
• Housing affordability ranking: 88
• Average weekly wages: $1,140
• Typical home price: $202,075

Located along the Texas panhandle, Amarillo, TX, is a stone's throw from the popular Palo Duro Canyon State Park, aptly nicknamed the "Grand Canyon of Texas." If you're looking for a job here, you're likely to find one. The city's 3.1% unemployment rate is well below the 3.7% national average.

While Amarillo ranks 24th overall on Milken Institute's list of best-performing small cities, it ranks particularly well for affordability. The typical home price is just over $200,000. For the sake of comparison, Missoula, MT, the next highest-performing small city on Milken Institute's list, has a typical home price of $592,180. Wages in Amarillo are also growing at a faster-than-average annual rate of 7.1%, as of Q4 2021. The average earner takes home $1,140 a week.

While the vibe in Amarillo is definitely up-and-coming, for now, the city's relative lack of amenities and higher-than-average crime rate keep it off most lists of best places to live.

4. Jonesboro, AR

• Best-performing cities ranking: 26 (-12 since 2021)
• 5-year job growth ranking: 12
• 5-year wage growth ranking: 14
• Housing affordability ranking: 87
• Average weekly wages: $977
• Typical home price: $183,121

Located about 70 miles northwest of Memphis, TN, Jonesboro, AR, is a lively college town anchored by Arkansas State University. A quickly growing economy coupled with stable home prices place it 4th on our list of smaller-sized hidden gems.

While average wages in Jonesboro grew at a rate of 7% in 2021, home prices have remained well below the national median. The typical home in Jonesboro costs just $183,121.

Placing near the bottom for high-tech jobs on Milken Institute's list, Jonesboro still ranks an impressive 12th among small cities for 5-year job growth and 14th for 5-year wage growth. ASU serves as the city's 2nd largest employer, and many residents also find employment in healthcare and education.

Outside of work, Jonesboro locals can enjoy a football game at ASU's Centennial Bank Stadium or explore more than 650 acres of gorgeous scenery along the hiking/biking trails at Craighead Forest Park. Residents also have easy access to Memphis's food and culture scene, including famed tourist attractions like the National Civil Rights Museum and Graceland.

5. Rapid City, SD

• Best-performing cities ranking: 28 (+82 from 2021)
• 5-year job growth ranking: 69
• 5-year wage growth ranking: 34
• Housing affordability ranking: 97
• Average weekly wages: $1,043
• Typical home price: $202,075

Situated between Badlands National Park and Black Hills National Forest, Rapid City, SD, has both amazing outdoor amenities and a healthy job market. Ranking 5th on our list for affordability, the city rose 82 slots in the Milken Institute's economic performance rankings in 2022. Among small cities, the scenic locale placed 34th for 5-year wage growth and 69th for 5-year job growth.

With a population of 76,500, Rapid City has more than 5,000 residents employed by its excellent healthcare system. Rapid City also has a strong military presence, with Ellsworth Airforce Base and the National Guard ranking among its top employers.

While the Milken Institute puts Rapid City in the 97th slot for housing affordability, the typical home price of $202,097 is still well below the national median. Average wages for Rapid City residents currently sit at $1,0423 per week, after rising 5.9% in 2021 — higher than the national median of 4.5%.

6. Valdosta, GA

• Best-performing cities ranking: 29 (+24 from 2021)
• 5-year job growth ranking: 72
• 5-year wage growth ranking: 45
• Housing affordability ranking: 99
• Average weekly wages: $887
• Typical home price: $181,786

Sixth on our list of the most affordable, top-performing cities is Valdosta, GA. Rising 24 spots in the Milken Institute's rankings since 2021, Valdosta currently ranks 45th for long-term wage growth and 72nd for long-term job growth.

Known as Azalea City for the colorful blooms that thrive there during the spring, Valdosta is home to the picturesque Valdosta State University. The quiet college town also houses Moody's Air Force Base, which is by far its largest employer. The base and university combined employ about a fifth of the city's 56,000 residents.

While not known for its culture or nightlife, Valdosta does have its fair share of restaurants, coffee shops, and historic charm. Many residents say Valdosta's quiet vibe and low cost of living make it a good place to raise a family. While wages are lower than other cities on our list, the average home there costs just $181,786.

7. Kankakee, IL

• Best-performing cities ranking: 34 (+2 from 2021)
• 5-year job growth ranking: 86
• 5-year wage growth ranking: 97
• Housing affordability ranking: 37
• Average weekly wages: $1,033
• Typical home price: $190,597

Located about 60 miles south of Chicago, is Kankakee, IL, which ranks 7th on our list for affordability and 34th among small cities for economic performance. The small city earned particularly high marks from the Milken Institute for its growing tech sector, placing in the top 20 for high-tech job concentration, as well as short- and long-term high-tech GDP growth.

While overall job and wage growth haven't quite kept pace with other cities on this list, Kankakee's low home prices keep it affordable. A typical home in the area costs $190,597, and its suburbs — including Bradley, Bourbonnais, and Manteno — are known as great areas to raise a family.

Top industries in Kankakee include healthcare, education, and manufacturing. The city also has a robust number of manufacturing jobs. And when you're ready to leave work behind and have some fun, you're less than an hour's drive from the big-city amenities on offer in Chicago.

8. Ames, IA

• Best-performing cities ranking: 38 (+71 from 2021)
• 5-year job growth ranking: 118
• 5-year wage growth ranking: 63
• Housing affordability ranking: 54
• Average weekly wages: $1,196
• Typical home price: $236,343

Coming in at 8th on our list, Ames, IA is the quintessential college town. Iowa State University is both the city's largest employer and a center of community activity, drawing residents to stroll along the scenic campus and cheer on its celebrated football team. Not surprisingly, Livability ranks Ames as the 2nd best college town in the U.S.

With the typical home in Ames costing $236,343, and average weekly wages sitting at just under $1,200, Ames ranks 54th for housing affordability and 34th for economic performance overall. The town's friendly feel and quaint historic district — boasting great food and live music — puts it among the nation's best places.

9. Greenville, NC

• Best-performing cities ranking: 40 (+14 from 2021)
• 5-year job growth ranking: 63
• 5-year wage growth ranking: 81
• Housing affordability ranking: 98
• Average weekly wages: $1,106
• Typical home price: $307,550

Greenville, NC, is yet another college town rounding out our list. The Milken Institute places Greenville's economic performance at 40th among small cities. With major employers including Vidant Medical Center, East Carolina University, Thermo-Fisher Scientific, and DSM Pharmaceuticals, the city also ranks in the top 20 for both high-tech job concentration and high-tech GDP.

With a price tag of $307,550, the typical home in Greenville is slightly more expensive than in other small cities on our list. However, the local schools also tend to be above average. And while Greenville hasn't yet made it to the ranks of the country's best places to live, it still has plenty to offer. Locals frequently shout out Greenville's walking trails, local restaurants, and live college sports as highlights of living there.

10. Elkhart-Goshen, IN

• Best-performing cities ranking: 41 (+88 from 2021)
• 5-year job growth ranking: 55
• 5-year wage growth ranking: 37
• Housing affordability ranking: 44
• Average weekly wages: $1,319
• Typical home price: $236,538

Situated along the Michigan border, Elkhart-Goshen, IN, is a small city experiencing massive job growth. In terms of job creation, only eight other small cities outperformed Elkhart-Goshen in 2021. Bolstered by equally strong wage growth (weekly wages increased 8.2% between 2020 and 2021), this town of 52,000 rose 88 spots on Milken Institute's list of best-performing small cities in 2022.

Many jobs in Elkhart-Goshen revolve around manufacturing, agriculture, and biomedical technology. Its business-friendly climate has made it the home base of three of the top five RV manufacturers in the nation.

With the typical home price sitting at $236,536, the city ranks 44th in terms of housing affordability. Better yet, its overall cost of living is nearly 20% below the national average, with future job growth projected at 53.70%, compared to 22.51% for the country overall.

11. Jefferson City, MO

• Best-performing cities ranking: 47 (+20 from 2021)
• 5-year job growth ranking: 61
• 5-year wage growth ranking: 84
• Housing affordability ranking: 40
• Average weekly wages: $976
• Typical home price: $218,917

Coming in at 11th on our list is Jefferson City, MO. Ranked 40th among small cities for housing affordability, the typical home in Jefferson city costs $218,917. The state capital of Missouri, "Jeff City" boasts an unemployment rate of just 3.3%. Many of the city's jobs are within the state government, which serves as the area's largest employer. While job growth has slowed somewhat over the past 12 months, the city ranked among the top 20 for job growth in the year leading up to the pandemic. Top industries in Jefferson City include government, education, and healthcare.

Residents of Jefferson City praise the town's schools, restaurants, walking trails, and historic downtown. The city also gives off a friendly vibe, with several community events and festivals held throughout the year.

12. Rochester, MN

• Best-performing cities ranking: 50 (+6 from 2021)
• 5-year job growth ranking: 52
• 5-year wage growth ranking: 59
• Housing affordability ranking: 11
• Average weekly wages: $1,400
• Typical home price: $306,526

Number 12 on our list of affordable high-performing cities is Rochester, MN. For a city of just over 117,000, it has a surprisingly high concentration of high-tech jobs, ranking 24th in this category out of 200 small cities on Milken Institute's list.

Major employers in Rochester include the Mayo Clinic, Rochester Public Schools, and IBM. With employers across a variety of industries providing a steady stream of decent jobs, Rochester ranks well for both long-term job and wage growth.

It's also a great place to live! The scenic midwestern city has inviting outdoor spaces, as well as a thriving foodie scene complete with restaurants, breweries, farmer's markets, and wineries. Residents can drink in the city's culture at multiple theaters, museums, and art galleries or attend a full calendar of concerts and sporting events held at the Mayo Civic Center each year. With all that Rochester has going for it, Livability ranked this hidden gem the 3rd best place to live in U.S.

Which cities didn't make the list?

While our list focuses on affordability, the Milken Institute gauges a wider range of factors — including broadband access and the number of high-tech industries in the region — to produce its annual rankings. Notable cities that ranked at the top economically but didn't make it onto our list due to affordability include the following.

You can find a complete list of the Milken Institute's Best-Performing Cities here.

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The post Hidden Gems: 19 Cities Where You Can Find Great Jobs and Affordable Homes appeared first on Semya-Moya.

Moreover, a survey from Rocket found that credit card debt actually outranks student debt as a barrier to home buying — despite the fact that the average student loan debt is 4.75 times higher than the average credit card balance carried over month to month ($28,950 vs. $6,093).

Here's what makes credit card debt so detrimental to homeownership, and what you can do to dig yourself out of that financial hole.

How credit card debt hinders homebuyers

1. Using a credit card doesn't pay off like business or student loans

Unlike business or student loans, there's no inherent income advantage to taking on credit card debt.

To explain what we mean here, the typical college grad makes about 84% ($36,000) more per year than those with a high school diploma. The college wage gap is even greater among earners ages 22 to 27, totaling $54,000 per year. So while student loan balances are significantly higher than the average outstanding credit card balance, the extra monthly payment owed by a college grad is dwarfed by their additional earnings.

On the other side of the income spectrum, those without a college degree have to allocate more of their monthly income toward living expenses like rent, phone bills, groceries, and gas. Those items cost the same whether you went to college or not. Per Anytime Estimate's findings, about half of those who missed a credit card payment in the last year did so to cover basic necessities.

As Americans struggle to keep up with rising inflation, the proportion of credit card borrowers falling behind on their payments could grow even higher. Taken together with record-high home prices, one in three millennials who don't currently own a home fear they'll never be able to afford one.

2. Credit cards carry some of highest interest rates around

Credit cards come with some seriously high APRs, averaging 15.56 to 22.87%, compared with 3.73 to 6.28% for federal student loans. Given that credit card interest adds up about 3 times faster, you can easily owe more per month on a much lesser principal balance.

Also, student loan programs allow for forbearances — essentially letting you put your payments on hold without penalty in times of hardship — but credit card lenders offer no such benefit. As soon as you get 30 days or more behind on your payments, you're considered delinquent, which harms your credit score. (More on that below.)

Credit card debt is one of the least forgiving debt types, so it's no wonder that 1 in 4 borrowers surveyed by Anytime Estimate say that paying down their credit cards has taken priority over paying other debts (including mortgages and student loans).

3. Credit card debt hinders future savings

According to Anytime Estimate's findings, 26% of those surveyed report that credit card debt has prevented them from building adequate savings — another frequently cited barrier to homeownership.

While the same could be said of any type of debt, some borrowers find it makes more financial sense to invest a portion of their income in stocks or other investments while still paying off their low-interest student debt.

The average stock market return over the past 30 years has been a little over 10%, while the average interest accrual on student loans sits at 4.12% — meaning borrowers would have netted more from investing in total market index funds (those that rise and fall with the market) than from putting everything toward their remaining student debt.

On the contrary, credit card debt accrues at a much higher rate than the typical rate of gain you'd see from the stock market. Therefore, it rarely makes sense to channel money toward investments before paying off your credit card debt in full.

4. Credit card debt impacts your interest rate on future borrowing

When determining your credit score, credit bureaus look at two types of credit:

• Installment credit, like student loans or car loans that you consistently pay off over time
• Revolving credit, like credit cards, which replenish your credit limit every month

As long as you are easily able to make the monthly payments on your installment loans given your current income, the overall balances won't hurt your credit score. However, your use of revolving credit is more heavily scrutinized. In fact, it's the second most influential factor composing your credit score.

"Thirty percent of your FICO credit score is based on your credit balances," says credit coach Jeanne Kelly. When it comes to applying for a mortgage, lenders prefer to see a credit utilization ratio of less than 30% — meaning that, rather than maxing out your cards each month, you keep your balances to less than a third of your total credit limit.

Credit bureaus also track your payment history, which accounts for an even larger 35% of your credit score. If your credit card balances are high, and you start missing payments, expect your score to suffer.

To provide a sense of just how important your credit score is when applying for a mortgage, let's imagine you want to buy a house listed at $500,000. You've saved enough to make a 20% down payment but need to take out a loan to cover the remaining $400,000.

The website MyFICO shows you what your monthly mortgage payment will be based on various credit score ranges. "You can see the difference in the loan tables," says Kelly.

Monthly payment and interest on $400,000 home loan, based on credit score

With an upper echelon credit score of 760 or above, your monthly payment would be right around $2,400. With a credit score of 620 — the minimum you need to qualify for most conventional loans — your payment would jump by more than $400 a month.

Over the 30-year life of the loan, you'll end up paying an extra $154,731 in interest for the same house — all because of a poor credit score.

At the average rate of return, that same $400 a month invested in stocks could net you $904,261 over the same 30-year period.

How to dig yourself out of credit card debt

The good news is that lowering your credit card debt is possible. One single mom famously paid off $64K in credit card debt in just two years. Is it going to require sacrifice? Absolutely. But, as Clever economist Danetha Doe reminds us, "it can also be an exciting time working toward your goal."

Doe recommends starting off with a specific monetary goal in mind. This may require you to review your different credit card balances to figure out exactly how much debt you need to pay off. From there, she advises, figure out two or three strategies that you can apply to start making progress today.

Here are a few suggestions from business and finance experts.

1. Cut out unnecessary expenses

"Do you really need that gym membership or cable TV package?" asks Philadelphia property investor Rinal Patel. To get rid of debt, "Why not cut out these non-essential expenses and redirect that money into paying down credit cards? Then, as much as possible, find free or low-cost alternatives for the things you enjoy."

Patel also suggests looking at ways to temporarily downsize your lifestyle. This might involve moving to a smaller place, getting a roommate, or downgrading your car in exchange for a lower monthly payment.

Entrepreneur Nunzio Ross suggests paying close attention to your monthly subscriptions. "Recurring bills from your streaming services, home security, video game subscriptions, and more can pile up monthly without you even realizing how much you can save from them," says the Majesty Coffee CEO. "Instead of multiple streaming services, consider rotating them to when your favorite shows or movies get released. Other services you only occasionally use can also be cut from your monthly expenses."

Financial adviser Caleb Reed suggests doing a no-spend challenge to kick-start your savings. "Also known as a spending freeze, this is a period, such as a month, in which you challenge yourself to completely quit spending on discretionary expenses," explains Reed.

Discretionary spending might include food delivery/eating out, entertainment, clothing, and other non-essentials. While extreme, this approach might help you build early momentum by returning several hundred (or even thousands) in savings early on, as opposed to a few extra dollars here and there.

One important thing to remember is that these sacrifices are temporary, and will ultimately get you to your long-term goals much faster.

2. Consider getting a (temporary) side gig

Ideally, says Doe, you'll want to balance trimming down expenses with adding an additional income stream. "A lot of financial blogs put the emphasis on cutting costs," she explains, "but the reality is, you can only save so much."

Given that rent, utilities, food, and transportation are non-negotiables, the real momentum may come from securing a second job — even if only temporarily, while you pay down your debt. Fortunately, you have a lot of options in today's growing gig economy.

Have a knack for writing or web design? Enjoy baking or photography? Have some previous experience in accounting? How about a love of arts and crafts? From Etsy to Upwork, there are a variety of forums that allow you to earn extra cash through a skills-based side hustle.

Many side gigs don't require any specialized expertise. Have nice handwriting? You might be able to sell your services creating hand-printed invitations for things like weddings and anniversary celebrations. (At Clever, we recently had a colleague go off to pursue his calligraphy side gig full-time.) Other forums like TaskRabbit let you set your own rate for things like organizing rooms, providing clerical assistance, putting together furniture, or helping with a move.

Then, there are the more conventional avenues of running errands, dog walking, tutoring, babysitting, or signing up as a driver with Uber or Lyft. If childcare is an issue, consider a family-friendly gig like pet sitting or grocery delivery through apps like Rover and Instacart. You can even scour local auctions for practical items to resell on eBay or Offer Up.

Depending on the gig, you could earn anywhere from an extra $100 to $1,000-plus per month to put toward your credit card debt.

3. Decide on a repayment strategy

As you rack up savings from cost cutting and extra income, it's best to have a strategy for how to apply those savings to your debt.

"I'm a big believer in the snowball method of debt repayment," says Melanie Hanson, Editor in Chief of EDI Refinance, "where you devote extra money each month to paying off your smallest debt first, then move on to the next-biggest one with your extra money, plus whatever you were paying on the smallest loan."

Other often-used strategies include focusing on paying off your highest interest loans first and consolidating your debts into a single monthly payment.

A credit counselor may be able to advise you on which strategy will be in your best interest. Both the National Foundation for Credit Counseling and the Financial Counseling Association of America offer access to accredited financial counseling services, many of which are free through area nonprofits.

4. Increase the frequency of your credit card payments

One approach to cutting down your credit card debt is to pay off your card as you spend. If you see your bank balance going down with every charge you put onto your plastic, you might think differently about your spending.

The same applies to savings. As soon as you get a certain amount from a cut expense or a side job, put the extra into your debt payments.

The pay-as-you-go approach may have the added benefit of boosting your credit score. Credit card companies report balances to credit bureaus monthly. If they happen to report at the end of a billing cycle, your credit utilization may look consistently high — even if you pay your balance in full each month.

Simply paying your credit balances before the bill is due could boost your credit score by several points.

To help with this strategy, try setting up credit alerts to trigger a payment whenever your balance surpasses a certain threshold — or simply get in the habit of making payments on a weekly or per-charge basis.

5. Have a plan for once you get out of debt

Becoming debt-free is a huge accomplishment, and definitely warrants celebration. However, without a plan for keeping the momentum going, you risk falling back into old habits.

Once you've paid off your debts, suggests Hanson, "a savvy next step is to put all of that money into savings each month. This is a strategy that will result in a huge savings windfall, all without ever changing your monthly budget."

Doe recommends setting a separate savings goal — such as saving for a down payment — and breaking it down by a timeline.

"First step, figure out a rough ballpark of how much you need to save," says Doe. "Is it $100,000? Is it $50,000? Second, consider how long you need to give yourself to reach that goal. From there, you can figure out how much you need to save each month to reach that target number."

Doe also suggests opening a dedicated account and reviewing it weekly to track your savings. "With that foundation set," she advises, "ask yourself what is one thing I can do today to move toward my goal?"

And, says Doe, "try to bring as much joy to the experience as possible. That may mean visualizing what you're saving for or talking with people who have figured out how to reach a similar goal. Surround yourself with positivity."

Keep your mind on the desired outcome and commit to making a little progress each day. When you do that, Doe concludes, "a seemingly insurmountable savings goal will soon feel like an approachable one."

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Loan assumptions, as they're called, allow you to take over an existing home loan instead of applying for a new one. Assuming a lower-interest mortgage could potentially save you hundreds of dollars every month.

For example, in Woodbridge, VA, a spacious three-bedroom, two-bath townhome listed on Zillow for just under $350,000 is advertising an "assumable VA Loan with a 2.25% interest rate to those that qualify." If you take over the mortgage at that rate, your monthly payment would be about $1,540.

Now, let's imagine that the mortgage assumption was off the table — and you plan to secure a traditional 30-year, fixed-rate mortgage to pay for the home. Using a mortgage calculator and setting the interest rate to 6.340% (the average APR at the time of this writing), your monthly payment would rise to about $2,210. This assumes you put down 20% and took out a mortgage for the remaining $280,000.

By taking over the seller's existing mortgage, you'd save nearly $700 monthly just on interest.

Monthly payment on an assumable vs. new home loan

Assumable mortgages used to be commonplace. However, when mortgage rates spiked during the 1970–80s, most lenders started eliminating assumable mortgages and made "repayment on sale" a mandatory feature of conventional home loans — presumably to get a higher return on their lending.

Today, mortgage assumptions are still permissible with government-insured VA and FHA loans, which make up about 20% of all home loans. However, they're far from commonplace. Multiple realtors and mortgage professionals we contacted for this piece had never seen one done.

For one thing, interest rates have been on a fairly steady decline for the past few decades, reaching historic lows in 2021. With ever-more affordable rates on offer, assuming a previous owner's mortgage didn't make financial sense.

Now, as interest rates climb back above 6%, curiosity about loan assumptions is also surging. Google Trends shows that searches for the term "loan assumption" hit peak popularity at the start of September.

"We’re seeing increased interest," says Chris Birk, vice president of mortgage insight at Veterans United Home Loans, "but it’s unclear whether that interest will ultimately translate into more assumptions."

Indeed, just because an assumable loan is on offer doesn't necessarily mean it will pan out.

Challenges associated with a mortgage assumption

One of the greatest obstacles with a mortgage assumption is that, just like in a traditional home sale, the seller will need to be compensated for the full purchase amount, minus what they still owe, at closing.

"If the loan balance is significantly less than the purchase price," says Eric Jeanette, founder and president of FHA Lenders, "it could mean having to come to the table with a much larger down payment."

Given that the median home value has risen by $100,000 over the past two years, you may also need to pay the seller a significant amount of appreciation on top of their original purchase price.

Here's an example. Say a seller has paid off half of a $400,000 mortgage on a home worth $500,000 due to appreciation. You'll need to come up with a minimum of $300,000 at closing.

That said, many VA loans come with a zero down payment requirement. FHA loans also come with low down payment options. Depending on how long the seller has been in the house, you still might find an assumable loan with a manageable down payment, even after factoring in the local rate of appreciation.

Even if the down payment required to take over a loan far exceeds your personal savings, you still have options for making up the difference — including taking out a second mortgage.

"Buyers would want to talk with lenders and banks about whether a second mortgage or a personal loan might be feasible," says Birk, who notes that "the lender or servicer allowing the assumption would factor that new debt into the buyer’s credit and underwriting profile."

Of course, your interest rate on a second mortgage loan would be subject to current market conditions. However, depending on what your total monthly payment ends up being, pursuing a second loan — even at a higher interest rate — may still be worthwhile.

Getting help from a relative, former relative, or godparent may also be an option for coming up with more cash at closing — especially now that Fannie Mae has expanded its list of permissible sources of tax-free gifts to assist with a down payment.

Another major consideration, particularly for a VA loan assumption, is that the seller's VA entitlement will stay with the loan until it's paid off in full. As a buyer, this means you don't need to be a veteran to assume a VA loan. However, it presents a significant downside for the seller.

"Veterans without their full entitlement may have diminished zero-down buying power for their next home purchase or, in some cases, lack sufficient entitlement to reuse the VA loan benefit at all," says Birk. In that case, they'd need to be comfortable applying for a conventional mortgage on their next home or find another qualifying VA borrower to take over with their own entitlement.

One of the greatest advantages of a VA loan is that you can put as little as zero money down. However, if the seller has enough equity in their home to make a significant down payment on a new one, it may not be an issue. And some sellers may not be interested in buying again right away.

A quick Zillow search reveals hundreds of properties across the country advertising assumable loans in the property details.

Since homes are sitting on the market significantly longer than they were a year ago, sellers may be willing to forego the benefits of a new VA loan to secure a buyer — especially if they're on a tight-selling timeline.

If the stars align on a property that interests you, and you can assume a low-interest loan with a significant balance, you could be in for substantial savings.

How to qualify for a loan assumption

To assume someone else's mortgage, you'll need to be able to cover the difference between the asking price and loan balance and meet borrowing requirements set by both the lender and mortgage insurer — whether it's the VA or FHA.

According to Veterans United, buyers must pay a 0.5% funding fee to assume a VA loan. This is on par with typical loan origination fees, which run 0.5–1%.

You'll also need to pay traditional closing costs, which can run 2–5% of the home's value. However, you may save a bit of money on an appraisal, which typically isn't required with a loan assumption.

Finally, the seller will need to obtain a release of liability from their lender, essentially pardoning them from any responsibility should you default on the loan in the future.

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If you're thinking of taking the plunge into homeownership, you might be wondering what you're really in for — and whether owning a home is all that it's cracked up to be. A recent homeowner study by Clever's research team may provide some insight.

In a survey of 1,000 U.S. homeowners, Clever found that a majority (52%) were surprised by the true costs of owning a house. Fifty-three percent stated they would have approached the home buying process differently had they known their home's true price tag.

The good news is that, even with the unexpected demands on their time and wallets, a vast majority of homeowners (7 out of 8) claimed that the benefits of owning a home outweigh the costs.

A lot changes after you buy a home. And like anything that we build up in our minds, the reality won't always match expectations.

To help paint a more realistic picture, we asked current homeowners to share the more surprising aspects of owning a home. Here are a few ways they say your life will probably change when you make the leap.

You'll suddenly understand why Home Depot is always so packed

Most wedding registries are filled with niceties like fondu sets and ice cream machines that you'll use an average of once. When you become a homeowner, you soon realize that you should have asked for more gift cards from home improvement stores.

Insurance copywriter Karen Condor discovered this recently after buying a home with her husband in South Carolina. "We felt as though we were spending every single Saturday at Lowe’s, and the credit card charges added up faster than I could pay them."

Clever's survey found that a whopping 97% of homeowners had done at least some work on their homes, and another 93% intended to take on more projects in the next five years. The most commonly completed home improvements included painting, major appliance repair, plumbing, electrical, and HVAC work.

Furthermore, homeowners spend upward of $6,300 annually on maintenance, repairs, and renovations. They also dedicate an average of 19 hours a month to working on their houses.

Yet, for many homeowners, that sweat equity often translates to deeper emotional investment in the home. "It's taught me how to fix leaky pipes, change an electrical outlet, and fix all kinds of things that I never knew how to do before," says Florida-based homeowner Kath Reas on Quora.

She explains how she and her husband built their home from the ground up as newlyweds and how, after he passed away, that home became a fortress. "My children love coming home, still, and feel safe here," she says. "And I, at the end of a long day or a long trip, feel all my troubles melt away when I round that last curve on my gravel drive."

» LEARN: Best Home Improvements for Resale Value

Your list of frequent contacts will now include your exterminator

From ants to rodents to yellow jackets, your home will be under constant attack from outside forces. So don't be surprised when, alongside your Costco membership, you find yourself paying for an annual subscription to your local pest control service as well.

In fact, among homeowners surveyed by Clever, pest control was the most commonly paid-for maintenance service, with 38% of respondents regularly shelling out cash to an exterminator.

And some of the pests you encounter might surprise you.

"We budgeted for an annual outlay for the usual household bugs," says Condor. "What we didn’t figure on were the additional pests, from carpenter ants attacking our shed and front porch to birds trying to nest inside our carport."

Apart from your local pest control specialist, other "friends" you can expect to add to your contact list when you own a home include landscapers, tree trimmers, gutter cleaners, pool specialists, and even housekeepers. Clever's survey found that more than one in four homeowners pay for each of these services on an ongoing basis.

You'll think WAY differently about money

One of the oft-cited benefits of homeownership is stability — the idea of setting down roots and making a place your own. Part of that stability may derive from a change in mindset that seems to take place among new homeowners, possibly out of an increased sense of responsibility for maintaining such a large investment.

"Ever since I bought my first home, I no longer think about money in the short-term," says Michigan homeowner Tim White. Rather, he says that questions like, "Can I make my bills this month, or can I get my paycheck early to buy that furniture I want so badly?" are a thing of the past.

Instead of short-term gratification, White now focuses on the equity he's building through long-term appreciation and value-adding home improvements. "I know this will help me build wealth, which is something that I can use when I want to retire," White says. "Owning a home has changed my mentality on this completely, and I’m so grateful for it."

Condor and her husband have undergone a similar change of mindset around money since buying a home, partly out of necessity.

"We didn’t realize the full extent of the hidden costs associated with home ownership," she explained to Clever by email. "I had to create a monthly budget and stick to it. I had to change my focus from being financially impulsive to financially mature. No more last-minute weekend getaways flying to Vegas. No more attending every concert and show I wanted to see. I now covet quality over quantity in order to have a well-maintained home."

» READ: How Much House Can You REALLY Afford on $48,000 a Year?

You'll feel more connected to your community

A study by PEW Research Center found that 65% of homeowners feel attached to their community, compared to 52% of renters. Moreover, the percentage of homeowners who feel "very attached" (20%) is nearly double that of people who rent (11%)

We talked to a number of new homeowners whose experiences support the research.

"We definitely care more about relationships with our neighbors now that we own a home, especially compared to when we were renting an apartment," says wellness expert Macy Westlund, who recently bought a home with her husband in Wisconsin. "We have made an effort to meet all of our neighbors and are glad we did!"

Karen Condor also experienced a deepening of her social circle after buying a home in her South Carolina neighborhood. "We consider each other not just neighbors but also friends."

That friendship comes with a lot of advantages. "We chat whenever we find ourselves outside at the same time," says Condor. "We keep an eye on each other’s homes when any of us are away. We bring back little gifts for each other after vacations. And we’ve consoled each other through everything from a multi-day power outage caused by an isolated tornado to a patriarch’s death three days before Christmas."

You'll have more realistic expectations about your 'investment'

Among homeowners surveyed by Clever, the number one reason for purchasing a home was because they felt it was a good investment. However, that line of thinking could quickly change once you encounter the hidden costs associated with maintaining your private slice of earth.

"Owning a home can be like a money pit," says Quora user Jennifer Kohos Kostiner. "Sometimes you know when things will need to be fixed in the near future. Other times, it comes as a complete shock," the Montreal homeowner continues. "Ideally, you always have money set aside for these unforeseen emergencies."

Despite the unexpected costs, says Kostiner, "I must admit that the home I am living in now is actually my dream home! I once heard that people say you love your new home for about six months, and then you just get used to it. This is not the case for me. I have been in my home for 10 years, and when I walk in the door, I still love it as much as when I first bought it!'

Other homeowners share similar sentiments about the costs and benefits of owning a home.

"Being a homeowner is a phenomenal experience," says California-based attorney Rick Nehora. "Everything seems personally satisfying, from creating a customized outdoor space to maintaining the house. Additionally, it enhances family relationships because everyone can now spread out in their rooms and create a new world for themselves in a secure personal space."

However, he admits that maintaining that space "is a physically and financially taxing task." Still, he says, "owning a home has made me realize the value of setting up roots in a friendly neighborhood and growing as a family by making happy memories."

"It is best not to think about it, actually," says Quora user Adlai Armundsen. "I love having a home, and I spend a lot of time in the garden and out in the gazebo admiring the gardens. But if I start thinking too much about mortgages and expenses and what if the roof should fall in or weird stuff like that, it gets worrisome."

His solution is simply to put those thoughts out of his mind. "Pay the bills," he says, "and just enjoy it."

The bottom line?

Homeownership is more expensive than a lot of first-time homebuyers anticipate. And as the unexpected costs pile up, the drain on your bank account can dampen your initial enjoyment.

However, as you adjust your expectations around homeowner costs, you might discover benefits far beyond the monetary return on your investment.

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The post Homeowners Reveal How Life Changes When You Buy a Home appeared first on Semya-Moya.