Should You Use an ‘iBuy Houses’ Company?

Examples of popular ‘ibuy houses’ companies

Here is a list of some established, reputable companies that buy houses for cash:

Opendoor

Opendoor offers a tech-driven approach to home buying, providing instant cash offers based on market data and analytics. This large iBuyer typically looks for homes in good condition.

Offerpad

Similar to Opendoor, Offerpad uses technology to make quick cash offers, focusing on convenience and speed for home sellers. As with Opendoor, this is a large iBuyer seeking well-maintained properties.

We Buy Houses

This well-known franchise group buys homes in any condition, providing fast cash offers and flexible closing dates. It should be noted that “We Buy Houses” is not a trademarked term, so not every company using the phrase is associated with WeBuyHouses.com.

Simple Sale (a HomeLight platform)

HomeLight’s Simple Sale connects sellers with the largest network of reputable cash homebuyers in the country, offering convenient, no-obligation cash offers and a quick sale process. This trusted platform also provides estimates on what you might get for your home if you hire a top agent to sell your house. You can request a quote by answering a few online questions.

HomeVestors / We Buy Ugly Houses®

Known for their catchy slogan and shaggy-haired caveman mascot, We Buy Ugly  Houses investors specialize in buying distressed properties, offering cash and a straightforward transaction.

Express Homebuyers

This company promises a fast sale, often within a week, and buys homes in various conditions without the need for repairs.

HomeGo

HomeGo buys homes directly from sellers, focusing on properties needing repairs and providing cash offers with flexible closing dates.

MarketPro Homebuyers

MarketPro offers a hassle-free home sale, purchasing properties as-is and handling all necessary repairs and renovations post-sale.

Sundae

Sundae provides cash offers for homes needing significant repairs, connecting sellers with a network of investors willing to buy as-is.

iBuyHouses

Operating for more than 30 years, iBuyHouses has built a network of cash buyers across the U.S. The company offers a guaranteed, no-questions-asked, hassle-free home sale process.

Should I use an ‘ibuy houses’ company?

Deciding whether to sell your home to an ‘ibuy houses’ company depends on your unique circumstances and priorities. These companies offer convenience and speed, but they often come at the cost of a lower sale price compared to the traditional market. For some sellers, the convenience can’t be beat.

If you need to sell your home quickly due to a life change, financial hardship, or if your property requires significant repairs, an ‘ibuy houses’ company could be a practical solution. However, if maximizing your sale price is your top priority and you have the time and resources to invest in a traditional sale, you might be better off working with a real estate agent.

You can find a top-rated agent in your market by using HomeLight’s free Agent Match platform. We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.

Top reasons people sell to ‘ibuy houses’ companies

There are several compelling reasons why homeowners choose to sell to ‘ibuy houses’ companies:

• Speed: When you need to sell your home quickly, these companies can often complete the sale within days or weeks, much faster than the traditional selling process.
• Convenience: Selling to an ‘ibuy houses’ company eliminates many of the hassles of a traditional sale, such as staging, showings, and negotiations.
• No repairs needed: These companies buy homes as-is, so you don’t need to invest time and money into fixing up your property before selling.
• Certainty: With an ‘ibuy houses’ company, you receive a firm cash offer and a guaranteed sale, avoiding the uncertainty of potential buyer financing falling through.
• Life changes: Situations such as job relocation, divorce, medical issues, or financial hardship can necessitate a fast, hassle-free home sale.

Drawbacks of selling to an ‘ibuy houses’ company

While there are many benefits to selling your home to an ‘ibuy houses’ company, there are also some drawbacks to consider:

• Lower sale price: These companies typically offer less than the market value of your home to cover their costs and ensure a profit.
• Fees: As noted above, larger iBuyers charge service fees that can significantly reduce your net proceeds from the sale.
• Limited negotiation: The offers from these companies are usually non-negotiable, giving you little room to increase the sale price.
• Market dependence: If the market is down or your home is in a less desirable area, the offer might be much lower than you expect.
• Lack of personal touch: Selling to a company can feel impersonal compared to working with a real estate agent who provides personalized service and advice.

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Process of selling to ‘ibuy houses’ companies

The process of selling to an ‘ibuy houses’ company is typically straightforward:

1. Initial contact: You provide basic information about your home through the company’s website or over the phone.
2. Property evaluation: The company evaluates your property using data analysis and market trends, often combined with an in-person or virtual inspection.
3. Offer: You receive a cash offer based on the evaluation, usually within 24-48 hours.
4. Acceptance: If you accept the offer, you choose a closing date that works for you, often within a few days to a few weeks.
5. Closing: The sale is completed, and you receive your cash payment. The company typically handles any necessary repairs or renovations after the purchase.

How ‘ibuy houses’ companies determine an offer price

House-buying companies use a variety of factors to determine their cash offers:

• Market analysis: They analyze recent sales of comparable homes in your area to gauge the market value.
• Condition: Your home’s current condition plays a significant role in the offer. Homes needing extensive repairs will receive lower offers to account for renovation costs.
• Location: The desirability of your home’s location, including factors like neighborhood quality and proximity to amenities, impacts the offer price.
• Market trends: Current real estate market conditions, such as supply and demand dynamics, influence the offer.
• Holding costs: Companies factor in the costs they will incur while holding and reselling your property, including taxes, insurance, and maintenance.
• Profit margin: Ultimately, ‘ibuy houses’ companies are in business to make a profit. Their offers include a margin to cover their expenses and generate profit from the resale or rental of the property.

Many ‘ibuy houses’ companies apply what’s known as the 70% rule, meaning they’ll offer 70% of your home’s after-repair value (ARV) minus the cost of repairs. Larger iBuyers like Opendoor and Offerpad generally pay closer to 85% or more of a home’s market value; however, they typically charge fees of 5% to 6%.

Is an ‘ibuy houses’ company the right choice for you?

If you’re trying to decide between selling your home through a real estate agent or to an ‘ibuy houses’ company, the key differences to weigh are money vs. time.

Money: While selling through a real estate agent typically takes longer, it usually results in more final proceeds in your pocket. Agents market your home to a wider audience, negotiate on your behalf, and aim to get the best possible price. The difference in your wallet can be substantial — and often results in enough additional profit to more than offset agent commissions.

Time: Depending on the market location of your home, it can take 25 to 65 days or more to find a buyer. Then you need to plan on the typical 43 days a buyer needs to close on a purchase loan. If you’re facing a relocation deadline or an urgent financial need, this difference can be substantial.

However, if time is not hard-pressing you, an agent provides personalized service, helping you navigate the complexities of the sale. Ultimately, the best choice depends on your priorities.

If maximizing your sale price and having a personalized service are important, working with an agent might be the best option. However, if you need a quick and hassle-free sale, an ‘ibuy houses’ company could be the right choice for you.

HomeLight would be happy to assist you in this decision. Through our Simple Sale platform, you can receive a no-obligation cash offer in 24 hours. This offer will also show you what your home might sell for with the help of a top agent.

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