With today’s advanced technology, home sellers have more opportunities than ever before to find flexible ways to sell their homes. You can list your home with a real estate agent, sell it yourself, or sell it to a company that buys homes for cash. Each of these options has its own benefits and drawbacks.

If you’re considering foregoing the traditional home sales process and selling your home fast for cash, it’s important to understand the benefits, drawbacks, and limitations of companies that promise to buy your home fast for cash.

In this article, we’ll discuss the pros and cons of selling your home to a cash buying company, how to avoid getting scammed, steps to take before you sign the contract, and important information on some of the largest We Buy Houses & iBuyer companies.

What Are We Buy Houses for Cash Companies?

We Buy Houses for Cash companies are not new. These types of companies have been around for decades. These companies all follow a similar business model. They buy homes directly from homeowners using their own cash or capital from private investors.

Cash buyers are usually real estate investors who want to buy your home as-is and resell it or fix it up and rent it out. These companies have become more popular in recent years because they offer a fast and convenient way to sell your home without having to go through the traditional home sales process.

While these companies can be a good option for some homeowners, it’s important to understand that they are not the right choice for everyone. Before we dive into the details, it’s important to note that there are two main types of cash home buying companies:

• We Buy Houses for Cash – These are companies that use their own cash or capital from private investors to buy your home directly from you. They are best for homeowners who are in a tough spot and need to sell quickly.
• iBuyers (Instant Buyers)– These are national companies that have raised hundreds of millions of dollars in venture capital to buy, renovate, and resell homes. Because most iBuyer platforms are national companies, they have strict criteria for the homes they will consider buying.

We Buy Houses for Cash companies offer more variety in terms of the types of purchases they make than iBuyer platforms do. A cash buying company may offer one or more of these types of purchases:

• Buy & Hold – In this type of transaction, the buyer intends to buy the home and rent it out as an income property.
• Fix & Flip – In this type of transaction, the buyer (a professional house flipper) intends to buy the property, renovate it, and then sell it for a profit.
• Wholesale – In this type of transaction, the buyer intends to buy the home, make some cosmetic changes, and then sell it to another investor at a higher price.
• Referrals – Some companies, like HomeLight, are not the ones actually making the offer. Instead, they are the middle-man between the seller and a cash buyer.
• Trade-In – This type of company helps sellers buy a new home before selling the home they are currently living in.

While both types of companies will make you an all-cash offer for your home, there are some key differences between the two. Let’s take a closer look at each type of company.

We Buy Houses for Cash Companies

We Buy Houses for Cash companies are usually small, local businesses that are privately owned and operated. These companies use their own cash or capital from private investors to buy your home directly from you.

The biggest advantage of working with a We Buy Houses for Cash company is that they can close on your home in as little as seven days. If you’re facing a foreclosure or need to move quickly for any other reason, these companies can be a good option.

Another advantage of working with a We Buy Houses for Cash company is that you can sell your home as-is. You won’t need to make any repairs or renovations before selling. These companies will buy your home in its current condition.

However, there are some drawbacks to working with a We Buy Houses for Cash company. One of the biggest drawbacks is that these companies will usually offer you less money for your home than you would get if you sold it through the traditional home sales process.

These companies need to make a profit, so they will usually offer you around 60-70% of your home’s fair market value. So, if your home is worth $100,000, you can expect to receive an offer of $60,000-$70,000.

Another drawback of working with a We Buy Houses for Cash company is that you won’t have control over who buys your home. These companies are usually looking to buy homes quickly and cheaply so they can resell them for a profit. This means that the person or family who eventually buys your home from the We Buy Houses for Cash company may not be the best fit for your neighborhood.

iBuyers

iBuyers are national companies that have raised hundreds of millions of dollars in venture capital to buy, renovate, and resell homes. The biggest advantage of working with an iBuyer is that they will make you a cash offer for your home within 24 hours if your home meets their criteria. Once you accept the offer, these companies will usually close on your home within a matter of days.

Another advantage of working with an iBuyer is that you can sell your home as-is in most situations. You won’t need to make any repairs or renovations before selling. These companies will buy your home in its current condition.

However, there are some drawbacks to working with an iBuyer. One of the biggest drawbacks is that these companies will usually offer you less money for your home than you would get if you sold it through the traditional home sales process.

iBuyers need to make a profit, so they will usually offer you around 80% of your home’s fair market value. So, if your home is worth $100,000, you can expect to receive an offer of $80,000.

Another drawback of working with an iBuyer is that they often have stringent qualification criteria that include the home’s location, condition, and value.

So, which option is right for you?

If you need to sell your home quickly and don’t mind receiving a lower offer, then selling to a We Buy Houses for Cash company or an iBuyer may be the best option. However, if you’re not in a hurry to sell and want to get the most money for your home, then selling through the traditional home sales process is probably the best option.

How to Avoid Getting Scammed When You Sell Your House for Cash

If you’ve decided to sell your home for cash, there are a few things you can do to avoid getting scammed.

First, make sure you work with a reputable company. There are many scams out there, so it’s important to do your research and make sure you’re working with a legitimate company. You can check online reviews, ask for referrals from friends or family, or contact the Better Business Bureau to see if there are any complaints against the company you’re considering.

Second, get everything in writing. Once you’ve found a reputable company to work with, make sure you get everything in writing. This includes the sales contract, the offer price, and the timeline for the sale. This will protect you in case anything goes wrong.

Third, don’t sign anything until you’ve had a chance to speak with an attorney. You should always consult with an attorney before signing any legal documents. An attorney can help you understand the documents and make sure you’re getting a fair deal.

Legit We Buy Houses & iBuyer Companies

While there is no shortage of companies that will buy your house for cash, not all of these companies are created equal. Here are a few of the top We Buy Houses and iBuyer companies in the United States:

Traditional We Buy Houses for Cash Companies

Founded in 2014, Finally Sold is a division of Right Now Capital, LLC. After filling out the request form, they send out a representative to the seller’s home to view the property and meet with the owner to discuss the details. If they decide to make an offer, the company sends out a contract for the seller to sign. Once the contract is signed, they start working on finalizing the sale.
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Finally Sold Quick Stats

Founded in 1997, We Buy Houses offers referrals to a nationwide network of real estate investors that buy houses fast with cash. Because each investor operates within their own territory, they are able to offer a wide range of services and programs to help homeowners sell their homes quickly.

We Buy Houses Quick Stats

The name aptly describes this company’s mission: to buy ugly houses. Not to be confused with its counterpart above, We Buy Ugly Houses has been in business for over 25 years and is a subsidiary of HomeVestors. As a franchise, each location is independently owned and operated. This means that the offer you receive will vary depending on the franchisee you work with.

We Buy Ugly Houses Quick Stats

Popular iBuyer Platforms

If you need to sell your home quickly and cannot be bothered with the hassle of traditional home selling, Opendoor may be a good option for you. This company will make you an offer on your home within 24 hours, and they can close the deal in as little as 14 days. While not as fast as some of the other companies we’ve mentioned, Opendoor is known for offering competitive rates when compared to some other iBuyer platforms. But, that slight advantage is not as remarkable as it appears to be.

Opendoor Quick Stats (Updated 2022)

Founded in 2018, HomeGo caters to short-sale home sales. After contacting the company, they send a local agent to the seller’s home to do a 30-minute walk-through and assess the property. If HomeGo is interested in buying the house, they make an offer on the spot. The seller then has 48 hours to accept or decline the offer.

HomeGo Quick Stats

If you need flexibility on the closing date, Offerpad may be the best iBuyer for you. This company allows you to pick your own closing date, which could be as soon as 8 days after your initial consultation with them. Or, if you need more time, you have up to 90 days to close the deal. Plus, you can get an additional 3 days to move out after closing.

Offerpad Quick Stats

Still on the Fence? What’s Next?

Now that you know the pros and cons of working with We Buy Houses for Cash companies and iBuyers, it’s time to decide which option is right for you.

If you need to sell your home quickly, then working with a We Buy Houses for Cash company or an iBuyer may be the best option. However, if you’re not in a hurry to sell and want to get the most money for your home, then selling through the traditional home sales process is probably the best option.

If you’re not sure what to do next, we can help. FastExpert is a free service that connects you with the top-rated real estate agents in your area. We’ll help you find an agent that meets your needs and can help you get the best price for your home.