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.
Compare multiple offers from trusted cash buyers in your area against the sale price you'd get with an agent. Clever Offers is free, and there's no obligation to accept an offer from our investors. Simply tell us about your property, and we'll do everything we can to get you the best possible offers for your home.
10 best companies that buy houses for cash
| Company | Customer Rating | Type | Service Fee | Time to Close | |
|---|---|---|---|---|---|
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Best overall
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5/5 (2,950 reviews)
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Cash offer network
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None
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Varies by offer type
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Learn More |
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4.3/5 (3,501 reviews)
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iBuyer
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5%
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14–60 days (flexible)
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Learn More |
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4/5 (2,706 reviews)
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iBuyer
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5%
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8–90 days (flexible)
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Learn More |
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4.5/5 (3,135 reviews)
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Franchise cash buyer
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None
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7–14 days
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Learn More |
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4.6/5 (683 reviews)
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Auction-style marketplace
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$1,000 + variable % deducted from offer
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10 days
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Learn More |
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4.4/5 (1,356 reviews)
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Franchise cash buyer
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None
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3 weeks
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Learn More |
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4.6/5 (1,178 reviews)
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Cash offer network
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None
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As little as 10 days
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Learn More |
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4.2/5 (448 reviews)
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Cash home buyer
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None
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7 days
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Learn More |
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4.8/5 (833 reviews)
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Home trade-in
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2% service fee + realtor commission
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Varies
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Learn More |
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4.4/5 (614 reviews)
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Home trade-in
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1.9% service fee + 6% brokerage fee
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14–60 days (flexible)
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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
| Offer type | Estimated sale price | Average time to close | Best for |
|---|---|---|---|
| Cash offer | 60–75% fair market value | 1–3 weeks | Sellers who want to sell quickly and with certainty they can close on their timeline. |
| Novation agreement | 80–90% | 40–60 days | Sellers who want a higher price without hassle. The buyer makes repairs, sells the house, then pays the seller. |
| iBuyer | 90–100%, minus repair costs and service fees | As little as 10 days | Sellers with homes in fairly good condition who are willing to sell for slightly less to avoid the traditional listing process. |
| Traditional agent listing | 100%, minus agent commissions | 30–60 days | Sellers who want to list on the market to get the highest price. |
| Creative financing | 110–120%, paid out over time | 30–60 days, with 2–10 year rent-to-own term | Sellers who don’t need a lump sum and want a rent-to-own arrangement to avoid capital gains tax and receive monthly payments. |
Reviews of companies that buy houses for cash
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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: semya-moya.ru
Phone: (833) 225-3837
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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
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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
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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
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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
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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.
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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
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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
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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
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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
✅ Pros
- Convenience: You can sell a property in almost any condition without worrying about repairs. However, some companies — particularly iBuyers — may deduct money for needed repairs they find during an inspection.
- Speed: You can get an offer quickly — sometimes on the spot after a home inspection. And you can close in as little as 1–3 weeks after accepting an offer.
- Certainty: Individual buyers can request contingencies or run into financing complications. When you're selling to a company, there's less risk your deal will fall through.
❌ Cons
- Lower sale price: Cash home buyers pay less than market value — usually no more than 70% of a home's estimated sale price after repairs.
- Need to carefully vet offers: The level of professionalism, transparency, and communication can vary significantly from investor to investor. You need to carefully vet potential offers to avoid signing a contract with unfavorable terms.
- Less room to negotiate: Cash offers are often take-it-or-leave-it, whereas traditional home sales allow for negotiation on the price and repairs. Generally, your best negotiating leverage is getting multiple competing offers upfront.
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:
- 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.
- 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.
- 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.
- Accept the offer. If you decide to accept, you sign a purchase agreement specifying the terms of sale.
- 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.
- 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
What is the best company that buys houses?
If you're thinking of selling your home to a company that pays cash for houses, you can choose between traditional cash buyers or next-generation iBuyers. Based on our research, some of the best cash home buying companies include Clever Offers, Opendoor, We Buy Ugly Houses, Offerpad, and Homevestors. .
How do you sell your house to a cash buyer?
In general, companies that buy houses for cash require you to submit information about your home online or via phone. Next, you'll schedule an inspection and receive a final cash offer. If you decide to accept the offer, you can usually set a closing date within 7–10 days (or later, if needed).
Are 'we buy houses' companies legit?
Yes, many reputable companies pay cash for houses. If you’re considering selling your home to one of these companies, thoroughly research it by checking its rating with the Better Business Bureau and reading previous clients' reviews.
Is selling to a cash buyer a good idea?
Cash buyers can be a good solution if you need to unload an unwanted, distressed property fast. However, this convenience comes at a high cost. There are other options that can help you sell your home in a short amount of time without sacrificing a ton of equity.
How long does a cash sale on a house take?
Selling your home to a cash buyer can take anywhere from seven to 30 days, depending on the buyer and your specific situation. A fast home sale is a key advantage of selling your home to a cash buyer. However, the tradeoff is that you'll likely get far less — typically 50–70% of your home's market value.
What are the closing costs for a cash buyer?
When selling your house to a cash buyer company, the closing costs — which often include taxes, insurance premiums, etc. — are typically covered by the buyer. This may sound like a good way to save money when selling your home. However, since cash buyers typically offer much less than your home's market value, you will likely not save money by avoiding closing costs.
How do I sell my house as is?
To sell a house as is, you can sell to a cash home buyer or iBuyer or list on the open market. Selling your home in as-is condition will likely attract more investors and bargain hunters, resulting in a lower offer price. But many investors can also pay cash and close quickly. It's best to seek multiple offers to ensure you get a competitive price for your home. You can compare offers on your own, with the help of an agent, or through a free service like Clever Offers.
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.
