Should I Get an Online Quote to Sell My House?
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- 15 min read
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Adrian E. Hirsch, Contributing AuthorClose
Adrian E. Hirsch Contributing AuthorAdrian E. Hirsch is a South Louisiana interviewer, writer, editor, blogger and scriptwriter. She’s covered the region’s unique lifestyle, landmarks, architecture, art, antiques, food, music, pets and healthcare issues for the Los Angeles Times Syndicate, New Orleans, Memphis and Gambit magazines among others. Having bought, sold and built homes, she’s survived the whims of the market, contractors, kids, rescued cats and dogs—not to mention hurricanes, erosion and termite invasion. Her real estate reporting aims to help families find the right home and maximize the potential of that major investment.
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Kelsey Morrison, Former HomeLight EditorClose
Kelsey Morrison Former HomeLight EditorKelsey Morrison worked as an editor for HomeLight's Resource Centers. She has seven years of editorial experience in the real estate and lifestyle spaces. She previously worked as a commerce editor for World of Good Brands (eHow.com and Cuteness.com) and as an associate editor for Livabl.com. Kelsey holds a bachelor’s degree in Journalism from Concordia University in Montreal, Quebec, and lives in a small mountain town in Southern California.
Some days, it seems you can’t escape them. They come at you from all directions. On the drive to your kids’ school, watching the news, checking your Facebook feed, highway billboards … promotions for online house-buying companies pop up everywhere.
If you are thinking about selling your home, those low-hassle, convenient, fast-sale pitches may pique your interest. You may be curious about getting an online quote for the sale of your home. But you’re probably concerned about clicking a link or calling a number that potentially opens a Pandora’s box of never-ending solicitations and shady deals.
You’re not alone in that skepticism. Research by the real estate consulting firm 1000Watt showed that 55% of sellers polled thought house-buying company sales propositions are too good to be true. Like you, they thought there had to be a catch.
These buyers will provide an online quote to purchase your home — often sight unseen. While they are sometimes comprised of small, local online buyers or investors, the companies reshaping the home sale landscape are larger investor groups and iBuyers (instant buyers), which tend to be corporations funded by large capital groups.
Investor groups such as “We Buy Houses” and “We Buy Ugly Houses®” typically purchase homes in cash for less than market value in as little as 10 days. Well-known iBuyer companies like Opendoor and Offerpad typically provide cash offers closer to market value, depending on the home’s condition and the company’s business model. These online quote companies may sell the home to a contractor, make repairs and then sell the home to another homeowner or investor, or convert the property into a rental.
Selling to an investor group or iBuyer isn’t attractive to everyone. In addition, the opportunity may not even be available in some markets.
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Like many other innovations propelled by technological advances, investor groups and iBuyers have their place in the kaleidoscope of real estate sales options. Whether it’s the right choice depends on your selling objectives and priorities.
To help you figure out whether a high-tech alternative will work for you, we’re giving you the basics about online home buyers — why these services are advantageous to some sellers, what kinds of companies offer online quotes, and the pros and cons of using an online process.
Why would I sell my house through an online quote?
The online-quote model can benefit home sellers who are looking to achieve one or more of the following objectives:
- Minimize public interaction: If you, your spouse, kids, and pets don’t want to be inconvenienced by a parade of potential buyers, agents, inspectors, appraisers, and contractors, online quote companies offer few interruptions. The only site visit may be a one-time assessment after the initial offer is presented. Transactions are finalized with very little foot traffic for what could be a nearly contactless home sale.
- Get cash fast: Unexpected expenses that pile up due to job loss, hospitalization, or even inflation might cause you to consider how to quickly convert your equity to cash, so you can relieve debt.
- Preempt a market downturn: You also might be motivated to sell ASAP to maximize market conditions or minimize an anticipated decrease in your home’s value due to changes in zoning, the neighborhood or adjacent property, or other factors beyond your control. Because they can close in as little as 10 days, online quote companies may be the solution to help protect your hard-earned equity.
- Close a quick sale: Perhaps, you want to be free to take your equity and pursue your dream home, dream job, the love of a lifetime, or a life in another city or country. With an online offer, you can be on to the next adventure — cash in hand — in less than the time it takes to get a passport.
- Need the certainty of a sale: Being stuck paying two mortgages or having a deal crash when the buyer’s financing falls through often tops the list of terrors in sellers’ real estate nightmares. If those and other slow or no-sale scenarios keep you up at night, you can rest easy knowing the chance of an online quote company pulling out of a sale is close to zero.
- Bypass the necessity of staging, prepping, or even cleaning out the property: Whether it’s a home you’ve lived in and loved for years or a home you’ve inherited in another city or state, it can take enormous effort and cost to clean out, stage, and maintain a house in ready-to-show-at-a-moment’s-notice condition.
- Skip the cost and hassle of repairs: Maybe, you don’t have the ability or time to make simple repairs yourself or pay for maintenance compounded by decades of deferred maintenance. Even though costly repairs may cause a decrease in the final offer, many investor groups expect to make repairs, so there’s no haggling over buyer demands for the sellers to make changes to the property. On the other hand, the larger iBuyers, such as Opendoor, are looking for properties in fairly good condition that do not need a lot of repairs.
- Desire for privacy: Even if your family isn’t the star of riches-to-rags drama like the Roses of “Schitt’s Creek,” there are times when protecting your privacy is a priority. If your family or property has become locally famous or infamous, or even if you’re going through bankruptcy or divorce, selling to an online quote company assures only real estate professionals enter the property and keeps curious onlookers out. There will be no for-sale signs in the yard or public showings.
- Avoid exhaustive inspections: Since many online quote companies plan to repair or renovate the property and pay with cash, there’s typically no need for an appraisal to satisfy a lender or an elaborate inspection.
- Receive a streamlined process with no negotiations and fixed costs: Online house-buying companies offer an alternative for individuals who are unwilling or unable to host open houses and showings or don’t want to get involved in tedious negotiations with buyers. Receiving and accepting an online quote to purchase your house is usually a convenient, relatively simple process with minimal paperwork for owners who inherit property or simply live out of state.
- Get a flexible move-out date: Once the preliminaries are completed, many online quote companies allow the seller to choose the closing and move-out dates.
- Dodge the stress, time, and energy involved in negotiation: While the online quote company may adjust the offer after a home visit, there is typically no negotiation involving buyers’ demands to fix certain items or provide credits or other compensation.
If the prospect of receiving a convenient, online cash offer is something you’d like to consider, you can explore a proven option on HomeLight’s Simple Sale platform.
Once you enter your address and answer a few questions about your home and selling timeline, you’ll receive a free, no-obligation, all-cash offer within 24 hours.
Sell when you’re ready without the hassle of paying for repairs, prepping for listing, or dealing with showings. With Simple Sale, you can typically close in as few as 10 days, and you won’t pay a program fee or closing costs.
What are the drawbacks of selling a home through an online quote?
While the online quote model works well for sellers who prioritize the certainty of a quick sale, the convenient sales process does come with some caveats. Homeowners who sell to a house-buying company may experience drawbacks, including:
- Inability to leverage special home qualities: Some sellers may be disappointed their home’s unique features and charm aren’t reflected in the online valuation and offer.
- Lack of negotiations: Sellers typically receive a data-driven, non-negotiable offer that can’t generally be influenced by additional information provided by the homeowner (however, the seller can still decline the offer).
- Fewer proceeds: You may face a decision to accept a lower price compared to an agent-assisted sale.
- Absence of competition to drive up the offer: With an online quote, sellers lose potential revenue due to the absence of bidding wars between buyers to drive up the sale price.
- Accumulation of hidden charges: Depending on the house-buying company and its business model, sellers may become subject to added convenience fees or other unexpected costs. It’s important to read offer agreements carefully before committing to any online quote.
- Lack of an ally with expert advice: Online sellers can miss out on the advocacy and expert advice an experienced real estate agent provides.
- Risk of being exploited: Sellers can potentially fall victim to a disreputable company or be taken advantage of by an aggressive or unprincipled investor.
- Possibility the deal may fall through: You could unknowingly work with a company that lacks the necessary cash reserves to close the deal on time. Some online offers may come from a house buyer that looks like other cash buyers, but they actually have no money to close on your property. Instead, their goal may be to sell the contract to an investor or other buyer for more money.
How common is selling a home through an online quote?
According to data from the National Association of Realtors (NAR), less than 1% of U.S. home sellers sold via iBuyer in 2023. CoreLogic reports that iBuyers purchased roughly 1,000 homes per month in 2023, marking a significant drop from 2021 and 2022 when iBuyers acquired between 5,000 and 9,000 homes per month at certain points.
While the exact number of sellers who sold to “We Buy Houses” companies is unknown, investors bought 19% of all U.S. homes sold in the first quarter of 2024, which equates to roughly one in five homes. Additionally, all-cash sales made up 28% of transactions in June 2024, consistent with May and up from 26% a year earlier, according to NAR.
iBuyer activity has historically been more common in states that have experienced significant population growth, including Texas, Arizona, Florida, Georgia, and North Carolina. If you live in a smaller city or rural area, the opportunities may be limited to individual online buyers or small investors.
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Who provides instant online house-buying quotes?
Investor group programs such as We Buy Houses were founded as early as 1996. Around 2010, the first larger online quote companies applied real estate tech’s ability to showcase homes virtually to meet society’s growing expectation to access 24/7 on-demand services.
These days, online buyers can be classified based on what they plan to do with the property after purchase.
For example:
- iBuyers: Since they tend to purchase properties in relatively good condition in areas with homogenous housing, these so-called instant-buyer companies will usually offer more for your home than investors or flippers.
- Investors and flippers: Often called “We Buy Houses” companies, these online buyers purchase homes, fix them up, and then sell them at a profit. If you’re selling a home that needs a lot of repairs to become habitable, flippers may be your best option.
- Buy-and-hold investors: This kind of house-buying company typically purchases houses with low-end offers and converts them into rentals. By “holding” them as income properties, they anticipate benefiting from increased property values over time through normal appreciation.
- Trade-in companies: Trade-in companies help sellers who need money to purchase their next home. They purchase your existing home for cash. With that cash in hand, you can buy your new home without a contingency and with an attractive cash offer, which can significantly strengthen your position in a bidding war.
- Local investors: These typically small, locally owned companies keep cash on hand to buy properties to rent, redevelop, or resell for a profit.
How much do house-buying companies pay through online quotes?
An online quote company’s motivation for purchasing a property is to make a profit.
Their quick digital tour or online valuation relies on data collection rather than the intangibles. While they might entice a traditional buyer into offering more, your home’s architectural details, lovely landscaping, or other charming features aren’t as likely to impress or fetch a higher price with a house-buying company.
The company’s offer is largely dependent on data from the sale of comparable properties and overall market conditions.
One typical online quote formula might be: Market value minus the estimated cost of repairs, and a 10%–20% convenience fee to account for the seller paying no agent commissions or closing costs.
For example, if the market value of a home is $400,000 and needs about $30,000 worth of repairs, less the 15% convenience deduction might leave the seller with $314,500.
Some sources suggest sellers receiving an online quote from a “We Buy Houses” investor can expect to walk away with an offer for 70% of the after-repair value (ARV). However, the range varies widely depending on the market, the condition of the home, and the company making the offer. Flippers may only offer 50% of ARV for homes in disrepair; others may offer up to 85% or more for a prime property.
In many cases — especially with investor and flipper groups — the seller will likely make less than market value and substantially less than if the property were to become the subject of a bidding war.
Knowing the value of your home is the cornerstone of a successful sale, both in agent-assisted and online offer transactions.
With HomeLight’s free Home Value Estimator tool, you can receive a ballpark estimate of your home’s worth in less than two minutes. Unlike other home value algorithms, HomeLight’s asks a few specific questions to estimate your home’s current value more accurately.
To get an even more precise estimate of your home’s worth, consider requesting a customized comparative market analysis (CMA) from a top real estate agent.
What does an online quote process look like?
Each online quote company has its own procedure for generating offers and purchasing homes. Typically, the process can be completed in only a few simple steps.
Step 1: Determine if you’re eligible to receive an offer. Visit the website of the house-buying company you’re interested in to find out which states it operates in.
Step 2: Enter your home’s address into an online form.
Step 3: Answer questions about your home, such as its square footage, the number of bedrooms and baths, any recent upgrades, etc.
Step 4: Receive an offer. If your home meets the online house-buying company’s criteria, you may receive an offer in as little as 24 to 48 hours.
The offer is typically based on recently sold homes in the area that are similar in age, features, and square footage. It usually includes a breakdown of fees and costs associated with the sale.
Some companies might adjust the offer if repairs are needed. But the initial bid is usually the best offer. It’s often non-negotiable, and counteroffers from the seller are not entertained. A representative from the company is likely to follow up by phone or email to discuss the offer and answer any questions.
Step 5: Decide whether to accept the offer. The offer is typically valid for at least a few days and can be quickly updated even after the expiration.
Step 6: Be prepared for a possible onsite assessment or inspection. In performing their due diligence, the house-buying company may examine the property’s condition by evaluating mechanical systems, structural integrity, updated or unique features, and looking for signs of water, termite, or other damage.
They may also investigate unpermitted work, liens, or other potential legal issues. If repairs are needed, the company may provide an estimate of what it will cost and deduct that amount from the net proceeds you receive in the sale.
Step 7: Accept the offer, often with the option to choose the closing and move-out dates. (Or, alternatively, decline the offer.)
Step 8: Close the sale and receive payment in a matter of days. Money is typically sent via wire transfer or check.
If you’re interested in the possibility of receiving an all-cash offer within 24 hours and closing in as few as 10 days, HomeLight’s Simple Sale platform allows you to:
- Sell your home in a matter of days, not months
- Maximize your home sale with a competitive offer
- Receive a cash offer
- Skip the repairs, prep work, and open houses
- Execute a quick, convenient sale
HomeLight’s Simple Sale provides an online quote at a competitive price. Based on your answers to a few basic questions, you will receive a no-obligation online offer quote, typically within 24 hours.
If you accept the offer, you can close in as few as 10 days with no hidden fees, agent commission, or prep work. It takes the stress and uncertainty out of selling your home.
Simple Sale also allows you to easily compare that cash offer with the estimated sales price you would receive by listing with a top-notch real estate agent. That’s because HomeLight can provide you with a list of recommendations for top-performing agents in your area.
What are the benefits of using a real estate agent?
The speed and certainty of receiving an online quote from an investor or iBuyer are attractive to some sellers.
Working with an agent may involve more intermediate steps than a sale directly to a house-buying company. However, in today’s market, agent-assisted sales can close quickly — and they tend to be more profitable.
The June 2024 Realtors Confidex Index showed that 65% of listings were on the market for less than one month, and 29% of homes sold above asking. The market remains seller-friendly, especially for those who partner with an experienced real estate agent with a high sale-to-list ratio.
The benefits of working with a performance-driven real estate agent include the potential to:
- Sell your home for more money
- Market special features or upgrades
- Identify and target the right buyer pool
- Leverage the Multiple Listing Service (MLS)
- Take advantage of agent connections (contractors, investors looking for properties, etc.)
- Identify strategic repairs that can reap tremendous ROI and avoid expensive changes that are a waste of time and money
- Set the right asking price from the beginning based on an analysis of comparable sales and current market conditions
- Ensure your home shows at its best in photos and in person
- Weigh the strength of offers based on your circumstances (price vs. flexible move-out date)
- Coordinate with potential buyers and their agents for a smooth transaction
- Negotiate so that you get the most money possible at closing
Depending on your circumstances, you may want to consult with a top real estate agent before accepting an online offer from a house-buying company.
Find a Top-performing Agent Who Can Get You Top Dollar
It takes just two minutes to match you with the best real estate agents in your market. To connect with a proven agent who can sell your home for top dollar, simply tell us a little bit about your house and how soon you’re looking to sell.
For a successful home sale, examine all your options
While the options can be overwhelming, never before have sellers had so many customizable ways to optimize their equity and meet their goals.
Each option has its benefits and drawbacks.
The online quotes generated by house-buying companies are often a great solution for owners who want to avoid the hassles of showings and negotiations and prioritize a fast closing over extracting the highest price for the property.
Because the quotes are fast and free, it’s worth your time to fill out several forms to see if there’s a big difference in estimated value, terms and conditions, and other essential information. Even if you choose to go with an agent, it’s typically time well spent because it may provide you with insights into the pricing and the market.
A traditional, agent-involved sale sometimes works best for sellers who want to get top dollar for their home and value the experience and expert advice of a trusted ally who can guide them through the process.
Whether your research leads you to explore online offers or begin the search for an agent, HomeLight offers a variety of resources, including its Simple Sale platform and its free Agent Finder, to help you efficiently maximize your equity and meet your sales goals with minimal stress.
Header Image Source: (Point3D Commercial Imaging Ltd. / Unsplash)
- "Highlights From the Profile of Home Buyers and Sellers," National Association of Realtors (November 2023)
- "US Home Investor Share Reached New High in Q4 2023," CoreLogic (April 2024)
- "Investors are scooping up roughly 1 in 5 homes sold in the housing market and making more money than before," Fortune (May 2024)
- "Existing-Home Sales Slipped 5.4% in June; Median Sales Price Jumps to Record High of $426,900," National Association of Realtors (July 2024)
- "REALTORS® Confidence Index," National Association of Realtors (June 2024)
At HomeLight, our vision is a world where every real estate transaction is simple, certain, and satisfying. Therefore, we promote strict editorial integrity in each of our posts.
