9 Top Companies that Buy Houses for Cash in 2024

Companies that buy houses for cash today

There are many different types of companies that buy houses for cash, including individual investors, small local companies, and large national chains. You’re likely familiar with house buying brands such as We Buy Houses (in your city) and We Buy Ugly Houses® — but there are others, too.

Let’s take a closer look at companies that buy houses for cash and what you need to know if you’re considering selling your home to one. We’ve done the research to give you a list of reputable cash home buyers with reviews and details about each, so you can start shopping for an offer.

Disclaimer: The specifics of house buying programs listed below can frequently change. Please visit the company’s website for the most up-to-date information on each individual company’s process, locations, and additional facts.

iBuyer companies

Having first emerged in the mid-2010s, iBuyers or instant buyers are a newer type of house buying company. Utilizing algorithmic tools known as automated valuation models (AVMs) to price homes, iBuyers typically purchase properties in better condition than other house buying companies. They provide a convenient way to sell your house either entirely or mostly online. For more information on iBuyers, we recommend HomeLight’s guide to the top six iBuyer companies for 2024.

Why sell to a company that buys homes?

“Selling to a cash buyer is a huge time saver,” says Will Holly, owner of Holly Nance Group, a boutique real estate investment firm in New Jersey that has purchased over 1,000 homes.

With work and family obligations, you might not have the time to oversee needed renovations or repairs before listing your home, so working with a company that buys houses is a viable alternative.

Maybe the roof is nearing the end of its lifespan, the paint is peeling, or the entire house should have a cosmetic makeover, but you’ve decided against making a substantial investment in your old home when you’d prefer spending your money on building a new home in a 55+ community.

Not all sellers have the time or budget to prep their house for sale or make extensive renovations necessary for a proper listing.

“With a cash buyer, you have certainty,” says Holly. Selling to a house buying company eliminates the uncertainty of getting a mortgage approved.

In addition, some sellers dislike the idea of strangers wandering around their home during open houses and repeated showings.

Is ‘We Buy Houses’ legitimate?

While it’s always a good idea to keep an eye out for scams or anything that just doesn’t seem right, most companies that buy houses for cash are legitimate. You can rest assured that this business model has been around for a while.

People have been flipping homes as we know it today since the ’80s and well-known real estate investing operations like We Buy Houses and We Buy Ugly Houses® have existed since the late ’80s to mid-’90s. iBuyer companies, such as Opendoor and Offerpad, emerged in the mid-2010s as a newer house buying concept.

However, house buying companies are generally going to pay less than market value for your home, even if they are 100% legitimate. The amount each of them offers may differ, but the price discount can be steep regardless of which house buying company you go with. To better understand just how much money you might be leaving on the table, get a preliminary estimate of your home’s worth today by answering a few brief questions on HomeLight’s Home Value Estimator.

These companies can also provide a quick and flexible closing, reduce or eliminate the need for repairs, and, in many cases, will cover all of the seller’s closing costs. But Holly cautions, “Not all home buying companies pay closing costs.” He recommends asking exactly what fees the buyer will pay as you compare offers to determine your take-home amount when the transaction is finalized.

Your sale price might be less when you sell to a house buying company, but it’s all about weighing the trade-offs and determining what’s best for your situation. “Most homeowners end up being more profitable by the time they save and the headaches they avoid,” Holly remarks.

What’s the process of selling a house for cash?

While the process varies from business to business, selling your home to a house buying company typically involves the following steps:

1. Decision: A homeowner decides a traditional listing isn’t for them. Perhaps their house requires a lot of work, they need a quick sale, or they do not want to host any showings or open houses.
2. Contact: A seller contacts a company that buys homes in their area and provides basic information about their property. Companies may also reach out to sellers about buying their homes.
3. Preliminary offer: At this stage, some house buying companies will provide a preliminary offer that is subject to change after a house assessment.
4. Assessment: The company schedules a walkthrough of the property to evaluate its condition, usually within 24 to 48 hours.
5. Firm offer: The company makes a firm offer (typically within 24 hours, sometimes on-site after the walkthrough) that you can accept or decline. Most of these companies will not negotiate on price, so the offer is typically “take it or leave it.”
6. Closing: If you accept the offer, you and the company will each sign the contract, and the closing process will begin. Some firms offer a large deposit or assist with moving costs, and a few may even pay for the home upfront.
7. Payment: The seller receives payment quickly, generally within seven days to a few weeks, although this varies by company. Sellers who work with a house buying company often enjoy flexibility in selecting a move-out date that works for them.

Types of companies that buy houses for cash

Not all house buying companies are the same. These entities can range in size, areas served, and business goals. Here’s an overview of the main categories of house buying companies you’re likely to encounter in today’s market.

1. House flippers

House flippers are real estate investors who purchase homes at a discount with the intention of remodeling to add value, and then resell those properties quickly for a profit. House flippers look for specific improvements to boost equity, such as cosmetic updates, mechanical repairs, additions, or layout changes.

Holly flips half the homes he purchases and rents out the other half. He typically aims for a 10% to 15% return on his investment.

Examples of house flipping companies:

• HomeVestors / We Buy Ugly Houses®
• Certain investors on HomeLight’s Simple Sale platform
• WeBuyHouses.com

2. Buy-and-hold companies

Buy-and-hold companies purchase houses with the intention of renting them to tenants for a profit. “Similar to flippers, they will look to acquire properties that offer enough potential equity or cash flow that they are able to make an acceptable return on investment for their owners or stakeholders,” explains Owen Dashner, owner of Red Ladder Property Solutions in Omaha, Nebraska.

Most of these investors use the “BRRRR” model, which stands for “Buy, Rehab, Rent, Refinance, Repeat.” Although many buy-and-hold companies focus on multi-family buildings desirable to renters, the two examples below purchase, renovate, and lease single-family houses.

Examples of buy-and-hold companies:

• Invitation Homes operates in 18 metropolitan areas, such as Atlanta, Chicago, Dallas, Phoenix, and Tampa.
• American Homes 4 Rent (AMH) serves major cities in 13 states including Arizona, Colorado, North Carolina, and Tennessee. This company also builds new home rental communities.

3. iBuyers

An iBuyer, also known as an instant buyer, uses real estate market data and technology to make immediate offers on houses, typically sight-unseen, after being contacted by the owner. Most iBuyers focus on buying houses that don’t need a lot of work, but they charge a service fee to sellers, typically 5%–6%.

Upon completing a thorough home inspection, which is after the buyer accepts their initial offer, an iBuyer also may request a credit called a “concession” to cover repair expenses.

“With higher rates and less activity, the market is less forgiving,” says Holly. He expects some smaller house buying companies to go out of business in the current real estate climate.

But buying homes for cash has been a losing proposition for larger companies as well, as noted by the departure of two major iBuyers, Zillow Offers and RedfinNow. RedfinNow shut down its operations in November 2022, while Zillow Offers closed up shop in November 2021.

Example of iBuyer companies:

• Opendoor
• Offerpad

4. ‘Buy before you sell’ companies

Many people need to sell their existing home in order to have enough funds to cover the purchase of their new home. Some companies provide or specialize in what are known as “buy before you sell” programs to facilitate a smoother process.

Generally, these companies will offer to buy your current home or present modern, convenient options that free up your equity to buy a new house and remove the need for a home sale contingency.

Examples of “buy before you sell” platforms:

• HomeLight Buy Before You Sell
• Flyhomes
• Orchard Move First

5. Local investors

Some home buying companies focus on purchasing houses in specific regions, states, and cities. These companies may have a national or multi-state presence under a unified brand bolstered by local offices run by associates affiliated with the umbrella company. Other local investors may be even more “mom-and-pop” in that they have small teams and may only work with a handful of homes per year.

Holly purchases houses in New Jersey under the $600,000 price point, preferring to steer clear of high-end homes. “It’s a different strategy, and they sit longer on the market,” he explains.

For sellers seeking a cash offer from a house buying company, working with a local firm may put additional money in your bank account. According to Holly’s experience, “A local company with an office near your home will pay more.”

Examples of local investors:

• These are the individual investors and businesses that appear when you search for something like “cash home buyers in [my city].”
• Some of these companies may specialize in your specific location or be associated with a brand serving a broader area.
• HomeLight’s Simple Sale platform connects sellers with local investors who purchase homes for cash.

Pros and cons of selling to cash house buyers

Still not sure if you’re a good candidate for working with a home buying company? Here’s a quick comparison of some of the most notable benefits and drawbacks of this arrangement.

FAQs about companies that will buy home for cash

We’ve already covered a lot of ground in our exploration of house buying companies and the real estate landscape teeming with cash buyers. However, you may still have some additional questions, which we aim to address below.

1. Is a homebuying company the right choice?

Sometimes. In many cases, a lack of time, money, and expertise for making significant repairs are reasons why sellers work with a house buying company rather than listing. Others prefer to avoid repeated showings. However, a house buying company is often not the right choice if your primary selling goal is to maximize the sale price.

2. What are the main reasons for selling to a house buying company?

How you choose to sell your home is always a personal decision, but here are a few scenarios that could make working with a house buying company seem more appealing.

• You’re relocating for a job or have another time-sensitive life change.
• You inherited a home and want to liquidate that asset.
• You don’t want to deal with the hassle of staging and showings.
• You lack the time, budget, or motivation to make needed repairs.
• You’re selling a problematic rental property.
• You want to avoid going into foreclosure.
• You found your dream home and need to make an offer fast.
• You need cash to get out of debt.
• You’re going through a divorce.

When you’ve got a very complicated situation, Holly says it might be preferable to sell to a house buying company that is better equipped to deal with intricate matters such as an estate sale or foreclosure. “In more complex situations, sometimes it’s the only way to go,” he remarks.

3. Which house buying site is best?

Your home may be a better match for certain house buying companies than others. iBuyers are a sound option for those selling homes in good condition at a particular price point; rental investors are better suited for rentable properties in high-yield areas, and house flippers typically seek homes that are in disrepair. If you’re unsure where to start, consider requesting an offer through Simple Sale, which provides all-cash offers for a variety of property types in locations across the country.

4. What are the best alternatives to house buying companies?

Selling to a house buying company isn’t the only route to a fast and easy transaction. A top-rated real estate agent can help you take the necessary steps to attract a quick offer while addressing any obstacles to settlement. A knowledgeable agent who understands your goals can guide you with pricing, marketing, and connections to local investors or qualified individual buyers who are eager to purchase a home like yours and close the deal fast.

5. Are house buying companies legit?

Most We Buy Houses for Cash buyers are legit, and you can rest assured that this business model has been around for decades. However, it’s always a good idea to keep an eye out for scams or anything that just doesn’t seem right. Always thoroughly research companies ahead of time. Verify all professional licenses, get a referral if possible, and vet the company with online customer reviews.

“It’s not easy to unwind a contract after you sign it,” says Holly, stressing the importance of taking extra precautions to ensure that you are dealing with a reputable firm. If the company doesn’t have the cash it promised to pay you or can’t close during the timeline you expected, it could take months to resolve disputes, during which your house could linger on the market and potentially decline in value.

Even if the company is on the up and up, Holly says to be on guard for wholesalers posing as cash buyers. They’ll pay even less for your home, and then will mark up the price when they quickly flip it to an actual house buying company that will renovate and sell the property.

6. How long does it take to sell a house for cash?

House buying companies can typically close on homes in as few as seven days to a couple of weeks. But they usually can provide a longer closing interval to sellers who need more time to pack up and move. Sellers should keep in mind that factors like title issues, inheritance complications, and HOA rules can cause settlement delays, even when working with a company that buys houses for cash.

7. What closing costs does a cash buyer cover?

It’s common for house buying companies to pick up all the closing expenses associated with a sale, including escrow and title costs. House buying companies are often willing to help cover a seller’s closing costs knowing that someone facing financial hardship doesn’t always have the funds to do so.

8. How much do house buying companies pay?

Each house buying company may offer different amounts for homes depending on the types of properties they purchase and their business specifics.

Many house buying companies follow the 70% rule, meaning they’ll offer 70% of your home’s “after repair value” (ARV), which takes into account deductions to make repairs and renovations. iBuyers tend to look for homes in better condition and frequently pay much closer to market value, typically in the 85%-95% range.

However, keep in mind that major iBuyers like Opendoor and Offerpad usually charge sizable fees for their services, often around 5%-6%.

Final thoughts on companies that buy houses for cash

Homes are on the market for a median of two weeks, according to the NAR’s 2023 Profile of Home Buyers and Sellers. While that means you may still get an offer quickly, sellers also need to consider an additional 44 days for mortgage processing and approval if they’re working with a financed buyer.

Selling to a house buying company, by contrast, typically results in a much faster process with a lot less hassle, although you aren’t likely to get as much for your home. “You’re paying for convenience and fully aware that you’re not getting top dollar,” Holly notes.

If you’re intrigued by the idea that a house buying company could offer to buy your home tomorrow but are a little skeptical about whether you’d be happy with the outcome, HomeLight can connect you with a top real estate agent in your area for further advice. Alternatively, get started with your home sale today by requesting a no-obligation cash offer through Simple Sale.

Writer Valerie Kalfrin contributed to this story.

Header Image Source: (fizkes / Shutterstock)