How much do companies that buy houses pay?

Cash-buying companies typically offer 70-85% of fair market value. iBuyers like Opendoor and Offerpad offer 90-95% but charge 5-7% service fees. 'We buy houses' investors usually offer 50-70% because they target distressed properties.

Is it a good idea to sell to a company that buys houses?

It can be if you need speed, convenience, or have a distressed property. But you'll typically net 10-30% less than a traditional sale. It makes most sense for inherited properties, relocations with tight timelines, or homes needing major repairs.

How fast can these companies close?

iBuyers typically close in 14-30 days. Cash investors can close in 7-14 days. Compare this to 45-60 days for traditional sales.

Companies That Buy Houses for Cash: iBuyers, Investors & More (2026)

Types of Cash Buyers

Type	Offer Range	Timeline	Best For
iBuyers (Opendoor, Offerpad)	90-95% of value	14-30 days	Speed + competitive offer
Large home buyers (HomeVestors)	70-85% of value	7-21 days	Properties needing repairs
Local cash investors	50-80% of value	7-14 days	Distressed/problem properties
Trade-in programs (Knock, Orchard)	~100% of value	30-60 days	Contingent offers, bridge buying

How iBuyers Work

iBuyers (instant buyers) use algorithms to make near-instant offers on homes.

Major iBuyers

Company	Markets	Service Fee	Typical Offer
Opendoor	50+ metros	5%	95-98% of market value
Offerpad	25+ metros	5-6%	94-97% of market value
HomeLight Simple Sale	Nationwide (partner network)	Varies	90-95% of market value

iBuyer Process

Step	Timeline
Request offer online	Day 1
Receive initial offer	24-48 hours
Home assessment	Days 3-7
Final offer	Day 7-10
Choose closing date	14-60 days flexible
Close and receive funds	Chosen date

iBuyer Costs vs Traditional Sale

Cost	iBuyer	Traditional Sale
Service fee	5-7%	N/A
Agent commission	$0	5-6%
Repairs requested	~1-2%	Varies
Closing costs	~1%	~1-2%
Total cost	7-10%	7-9%

Net difference: iBuyers are often comparable in total cost but faster and more convenient.

“We Buy Houses” Companies

These companies (often displaying signs on street corners) buy homes as-is for cash.

What They Offer

Factor	Typical Terms
Offer price	50-70% of market value
Repairs required	None (buy as-is)
Closing timeline	7-14 days
Fees	None (baked into lower offer)
Best for	Distressed properties, foreclosure avoidance

Legitimate vs Scams

Legitimate Signs	Warning Signs
Provides written offer	Pressure to sign quickly
Gives time to consider	Requires upfront fees
Uses title company	No contract or vague terms
References available	Won’t provide business info
Transparent about process	Makes verbal-only promises

Franchise Buyers

HomeVestors (“We Buy Ugly Houses”)

Factor	Details
Offer range	70-85% of after-repair value
Timeline	7-21 days
Property condition	Buy as-is, any condition
Markets	Nationwide franchise
Best for	Properties needing major repairs

What They’re Looking For

Property Type	Typical Discount
Move-in ready	15-20% below market
Needs cosmetic updates	20-25% below market
Needs major repairs	25-35% below market
Severe distress/damage	35-50% below market

Trade-In Programs

These programs let you buy a new home before selling your current one.

How They Work

Step	Process
1. Get approved	Qualify for new home purchase
2. Home valuation	Company values your current home
3. Make backed offer	Buy new home with company backing
4. Move	Relocate to new home
5. List old home	Agent lists your previous home
6. Sell	If no sale, company buys at guaranteed price

Major Trade-In Services

Company	Model	Fee
Knock	Bridge loan + trade-in	1.25-1.5% of home price
Orchard	Buy first, sell later	~2% of old home
Homeward	Cash-backed offers	1.5-2%
Flyhomes	Cash offer, then traditional	1-2%

When Selling to a Cash Buyer Makes Sense

Good Scenarios

Situation	Why Cash Buyer Works
Inherited property	Quick sale, don’t want to manage
Relocation with deadline	Need to sell fast for job
Divorce	Quick, clean split
Facing foreclosure	Stop foreclosure, get some equity
Major repairs needed	Can’t afford fixes for traditional sale
Tenant issues	Property has difficult tenants
Tax lien or title issues	Cash buyers handle complications
Estate settlement	Liquidate quickly for heirs

When to Avoid

Situation	Better Alternative
No timeline pressure	Traditional sale for max profit
Home is move-in ready	List on market
Hot seller’s market	Multiple offers will drive price up
Need maximum proceeds	Traditional sale + staging

Comparing Sale Options

$350,000 Home Example

Option	Sale Price	Costs	Net Proceeds	Timeline
Traditional agent	$350,000	$24,500 (7%)	$325,500	45-90 days
iBuyer	$340,000	$23,800 (7%)	$316,200	14-30 days
HomeVestors	$280,000	$0	$280,000	7-14 days
Local investor	$245,000	$0	$245,000	7 days

Trade-off: Each faster option costs $10,000-$80,000 in proceeds.

How to Get the Best Cash Offer

Steps

Get multiple offers — Request from 3-5 cash buyers
Get a home valuation — Know your market value first
Negotiate — Cash offers are negotiable
Compare net proceeds — Factor in all costs
Check reviews/references — Verify legitimacy
Read contracts carefully — Watch for hidden fees

Questions to Ask

Question	Why It Matters
What’s your offer price?	Compare to market value
What fees do you charge?	Some have hidden costs
Who pays closing costs?	Can vary by company
What’s your timeline?	Ensure it meets your needs
Will you do repairs?	Understand as-is terms
What happens if I back out?	Know cancellation terms

Red Flags to Watch For

Warning Sign	Potential Problem
Pressure to sign immediately	Hiding unfavorable terms
No written offer	No accountability
Requires upfront fee	Likely scam
Won’t provide references	No track record
Offer far below what others give	Lowball hoping you won’t compare
Contract has penalty clauses	Trapped in bad deal

State-by-State Considerations

State	Notes
Texas	Strong investor market, many options
Florida	iBuyers active, investor-heavy
California	High values = high service fees
Arizona	iBuyer headquarters, strong coverage
States with few iBuyers	More reliance on local investors

The Math: When Cash Buyers Make Financial Sense

Break-Even Analysis

When carrying costs exceed the discount:

Monthly Carrying Costs	Annual Cost
Mortgage payment	$2,400 × 12 = $28,800
Property taxes	$400 × 12 = $4,800
Insurance	$150 × 12 = $1,800
Utilities	$200 × 12 = $2,400
Maintenance	$200 × 12 = $2,400
Total	$40,200/year

If traditional sale takes 6 months longer: $20,100 in extra costs — might make iBuyer worth it.

Repair Cost Consideration

If repairs needed for traditional sale exceed the discount:

Scenario	Cost
Repairs needed for traditional sale	$35,000
Cash buyer discount	$30,000
Cash buyer advantage	$5,000 (plus no hassle)

Bottom Line

Cash-buying companies offer speed and convenience at a cost of 10-30% less than traditional sales. iBuyers like Opendoor provide the best balance of fair offers and fast closing. For distressed properties or urgent timelines, “we buy houses” companies fill a real need despite lower offers. Always get multiple offers and know your home’s market value before accepting any cash offer.

Best approach: Start with an iBuyer quote to establish a baseline, then compare to investor offers and traditional listing estimates.

Tags: