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Home Real Estate

Companies that Buy Houses for Cash in America

Alex Peter by Alex Peter
July 14, 2022
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Not very long ago, the only route to sell a property was to hire the services of a realtor, list it on the MLS and wait for a decent offer to come in.

But then technology came and took the real estate market by storm. With the help of these technological tools, buying and selling have become faster and more transparent.

Several companies, which are offering sellers different ways to bypass the traditional route of selling, have cropped up. One such type is cash home buyers.

These articles talk about the top cash home buyers in the United States. Read on.

1. Offerpad

Offerpad is an instant buyer that buys homes for cash to help sellers circumvent the hassles of selling a property traditionally. The company is famous for its simple user interface and fast closing. Set up in 2017, the company has a strong suite of technology tools, a knowledgeable team of specialists, and vast housing market data.

With Offerpad, you submit details about your home online and get an offer within 24 hours. If you like the offer, the deal can be closed in as little as 8 days.

Offerpad reviews mention that it charges a 5-6% service fee. This is similar to what you will pay as commission to a traditional realtor.

Offerpad reviews suggest that the company provides 80% to 100% of the house’s fair market value. The company has a 4.6/5 rating on TrustPilot. General Offerpad reviews are mainly positive, mentioning flexible closing schedules and fair offers.

2. Opendoor

Opendoor is another cash home buyer and is touted to be USA’s largest and best iBuyer. Launched in 2014, it was the first iBuyer to introduce the iBuying model of instant cash for properties.

It is a good option for sellers who want a quick sale with minimum hassle. Opendoor reviews suggest that while the price Opendoor pays could be below the fair market value of comparable properties on the open market, the difference may be worth it for those who value speed and convenience.

The company purchases more single-family homes than any other iBuyer. All you need to do is give the address, photos, and basic information about the property on its app or website. If your house is in its coverage, a representative will assess the home and make an offer.

The first cash offer is shared within 24 hours. The company charges a 5% service fee plus a deduction for repairs. The final offer is computed after deducting closing costs that typically range from 6% to 13%.

Opendoor reviews suggest that the iBuyer is best for homeowners who have pretty homes and don’t need major repairs.

3. Knock

Knock is unlike other iBuyers. It uses the concept of trade-in instead of buying/selling homes directly. This approach blends both the transactions into a single process.

It lends sellers a part of their property’s equity before selling. This enables them to buy a new house and move into it while Knock deals with listing and selling the old one.

This unconventional lender offers guaranteed cash-backed offers to help buyers stand out in competitive markets.

Most Knock reviews are overwhelmingly positive. It has an average rating of 4.8/5 on major review sites. However, one potential drawback is that users will not be able to shop around for their mortgages. Instead, they will have to use Knock as their mortgage lender. This will lock them up in whatever rates they offer.

4. Redfin Now

It is an extended cash buying arm of Redfin – USA’s biggest discount brokerage company. Sellers can easily sell without marketing their homes and get decent cash offers.

Unlike most iBuyers, RedfinNow purchases vacant houses as well.

Redfin Now reviews are limited but among the positive ones, it was found that the company delivers on its promises. Negative reviews highlighted how the firm reduced the offer sharply after a home inspection.

While its services are similar to that of other iBuyers, Redfin Now charges a 5-13% service fee, which is higher than competing firms.

5. Orchard

Like Knock, Orchard is also a home trade-in service. It allows sellers to buy a new home by getting part of their current home’s equity. You can then list your old property with an Orchard listing agent.

If you want to move fast, but still desire a good price for your property then it can be considered. However, the company only takes newer homes as compared to its competing firms.

If you are purchasing in a competitive market, the funds can be used to make a cash offer, which is usually more appealing to sellers than offers that are contingent on financing.

Orchard charges a 6-13% service fee on the final cash offer.

Bottom Line

Cash home buyers can help you save considerable time and bypass expenses like closing costs and repair bills. However, convenience comes at a price. So, if your priority is a quick sale with minimal trouble, then selling to such buyers could be a good option.  

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