- If you need to sell a home fast, you can sell it to iBuyers and “We Buy Homes For Cash” companies.
- These companies typically buy homes for less than market value, but can help you close in 14 days or less.
- The most popular cash-buying companies include We Buy Ugly Houses, Opendoor, and Sundae.
To sell your home and get the full market value, you’ll have to get a real estate agent to list it on an MLS, hoping to stimulate a bidding war, and accept a buyer who will likely finance it with a mortgage loan. The process can take two to three months, but hey — you might get top dollar for your property.
But if you’re looking to sell a house fast — like yesterday — and you don’t mind getting less than market value, you can choose from a number of companies who will pay cash for your home and close within 14 days or less.
Some of these companies are called “iBuyers,” and they’ll generally pay you more. The drawback: iBuyers typically only buy homes that are in great condition, and they’re limited to a few housing markets. For more availability, or for homes that are in worse condition, you might have to sell to a “We Buy Homes For Cash” company, which may give you only 50% of your home’s market value.
Which companies are buying houses? Let’s take a look at the three most popular options.
1. We Buy Ugly Houses
We Buy Ugly Houses is a real estate company that buys distressed and inherited properties in 47 states and Washington DC The company operates through its 800 franchises, who will pay cash for your home after assessing its value.
It works like this: You call your local We Buy Ugly Houses franchise and it will send someone to evaluate your home. You’ll get a cash offer instantly, either on the spot or a few days after the assessment. You can then choose to accept the cash offer, or walk away. Like other “We Buy Homes For Cash” companies, you won’t be able to negotiate.
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Since the company can give you an offer between two and three days, you can often have cash in hand within two weeks. Better yet: The company doesn’t charge any fees and you don’t have to pay real estate commissions.
We Buy Ugly Houses doesn’t have a hard-and-fast rule for how much it offers for homes, but numerous real estate websites — like Upnest — believe you can get roughly 50% to 70% of your home’s after repair value in cash. “After repair value” (ARV) is simply the value of your home after repair costs are factored in.
For example, if your home is worth $300,000, but needs roughly $15,000 in repairs, We Buy Ugly Houses might offer you between $142,500 and $199,500 in cash.
2. Open doors
Opendoor is an iBuyer company that operates in 47 metropolitan areas, like Atlanta, Denver, Houston, San Diego, and Washington DC
The company buys homes for cash, but its criteria might be stricter than We Buy Ugly Homes depending on your area. Often, Opendoor will only buy homes that are in great condition. They don’t typically buy short sales, foreclosures, or distressed properties — unless it’s in a market with high investment potential.
To start the process, send a photo of your home along with a description of its features, and Opendoor will give you a preliminary offer. this isn’t your final offer. If the initial offer sounds good to you, Opendoor will send someone to inspect your home. After the assessment, Opendoor will send you an adjusted offer based on damages or repairs needed.
The company won’t give you market value for your home, but it can get close. Opendoor charges a 5% fee plus closing costs (1% to 3%), so you’re really not paying anything less than working with a real estate agent. But you can typically have cash in hand between 14 and 60 days, and you won’t have to list the home on an MLS.
Sundae isn’t an iBuyer or a “We Buy Homes For Cash” company. Instead, it’s a marketplace that connects owners of distressed or dated homes with property investors.
It works like an auction: you list your home on Sundae’s market platform and property investors place bids. The auction typically lasts only a few days, after which you can review each offer and decide if it’s the right price. Unlike other bidding platforms — like eBay — you don’t have to accept the highest offers. You can back out at any time.
To get started, Sundae will send a professional to inspect your home and determine a good starting price for the auction. If you accept, Sundae will then list your home on its marketplace and drive investors to it. After you accept an offer, Sundae will give you an advance of $10,000 to close.
The company claims you can close between 10 and 60 days. It also doesn’t charge sellers any fees, as its investors pay monthly dues to join its membership programs.
Should you sell to a cash buyer?
Selling to a cash buyer could mean selling your home for less than what it’s worth. But it might be ideal if you own a dated or distressed property and you want to get rid of it as quickly as you can. It could also be a good solution if you inherited property and you don’t have time to sell it with a real estate agent. If you need to sell a house in a hurry, consider these three companies.