What companies buy houses for cash?

The main types of house-buying companies are: (1) iBuyers — technology-driven companies like Opendoor and Offerpad that make algorithmic offers typically at 90%–95% of market value and charge service fees of 4%–6%; (2) 'We Buy Houses' / cash investor companies — local or national investors who typically offer 60%–75% of market value, targeting distressed or as-is properties; and (3) national homebuying companies like HomeVestors (We Buy Ugly Houses) that operate similarly to local investors. These differ significantly in offer amounts, timelines, and property conditions accepted.

How much do iBuyers pay compared to market value?

iBuyers like Opendoor typically pay 90%–95% of estimated market value, then charge a service fee of 4%–6% of the sale price. On a $400,000 home: an iBuyer might offer $380,000 and charge a $22,800 service fee (6%) plus $10,000 in requested repairs — netting the seller about $347,200. A traditional sale at full market value of $400,000 minus 5% commission ($20,000) and closing costs ($5,000) would net $375,000. The iBuyer convenience costs approximately $28,000 in this example.

How fast can a company buy your house?

iBuyers can close in as little as 14–30 days. 'We Buy Houses' cash investors often close in 7–14 days, and some can close within 48 hours in urgent situations. Traditional mortgage-financed sales typically take 30–60 days to close. The speed advantage of cash buyers comes from skipping the mortgage underwriting process — there is no lender involved, so closing requires only clear title and agreed-upon terms.

When does selling to a house-buying company make sense?

Selling to a company makes sense when: speed and certainty outweigh maximizing price; the home needs significant repairs that the seller cannot or will not make; the seller is facing foreclosure, divorce, estate settlement, or relocation on a tight timeline; the local market is slow and a traditional sale could take months; or the seller wants to avoid showings, open houses, and the uncertainty of contingency-heavy offers. For sellers who prioritize net proceeds and have time, a traditional listing typically yields a higher net sale price.

Companies That Buy Houses: iBuyers, Cash Buyers & Instant Offers Explained

House-buying companies purchase homes directly from sellers, offering speed and certainty in exchange for a lower price. iBuyers like Opendoor typically pay 90%–95% of market value with service fees, while traditional cash investors often offer 60%–75% of market value for as-is properties.

Types of House-Buying Companies

Type	Examples	Offer (% of FMV)	Condition Required	Closing Timeline
iBuyers	Opendoor, Offerpad	90%–95% (minus fees)	Good condition, limited repairs	14–30 days
National cash investors	HomeVestors, We Buy Houses	60%–75%	As-is, any condition	7–21 days
Local cash investors / flippers	Varies by market	65%–80%	As-is preferred	7–21 days
Instant cash offer programs	Redfin Now (discontinued), Keller Offers	85%–93%	Good condition	14–45 days
iBuyer + list option	Opendoor (also lists on MLS)	Either	Varies	Varies

iBuyers vs Traditional Cash Buyers

iBuyers (Opendoor, Offerpad):

Use algorithmic pricing models based on market comps
Offer near-market-value but charge a service fee (4%–6%)
Accept homes in good condition (they renovate and resell)
Provide a formal offer within 24–48 hours after inspection
Best for: good-condition homes in iBuyer markets, sellers who want a fast, clean sale near market value

Traditional “We Buy Houses” cash investors:

Use the 70% rule or lower: maximum offer = 70% of ARV minus repairs
Accept homes in any condition, including major distress
No fees or agent commissions — offer is net to seller
Close very fast; minimal inspections
Best for: severely distressed properties, urgent situations (foreclosure, estate)

The True Net Price Comparison

On a $400,000 home in good condition:

Sale Method	Offer / Price	Fees / Costs	Net to Seller
iBuyer (Opendoor)	$380,000	$22,800 fees + $8,000 repairs	~$349,200
Traditional listing (agent)	$400,000	$20,000 commission + $5,000 closing	~$375,000
Cash investor (75% FMV)	$300,000	$0	$300,000
FSBO (no agent)	$390,000	$5,000 closing costs	$385,000

The traditional listing yields the most money in this example — but requires 30–60 days, showings, and uncertainty. The iBuyer costs about $26,000 more than traditional listing costs but closes in 2–3 weeks with certainty.

Red Flags When Dealing with Cash Buyers

Not all house-buying companies operate ethically. Watch for:

Equity stripping: Offers significantly below fair market value without disclosure
Contingency traps: Initial offer is high; “inspection” mysteriously finds problems to lower the offer
Assignment clauses: Some “buyers” have no intention of purchasing — they sell the contract to an investor
Pressure tactics: Legitimate cash buyers don’t pressure you to sign immediately
No proof of funds: Always request proof of funds or a bank verification letter

When to Consider a House-Buying Company

A cash buyer or iBuyer may be the right choice if:

Your home needs $30,000+ in repairs you cannot fund upfront
You are behind on payments and facing foreclosure in 30–60 days
You are settling an estate and need a fast, clean close
You are relocating for work and need to sell quickly
You have already purchased a new home and are carrying two mortgages
Your home has been on the market for 90+ days with no offers

If none of these situations apply, a traditional listing with an experienced agent will almost always net more money.

iBuyers and cash buyers offer speed but typically at 5–15% below market value — see real estate comps to estimate your home’s true market value before comparing offers. For sellers who want full market exposure without an agent, see selling a home without a real estate agent as a cost-saving alternative. The real estate commission changes guide also explains new options for reducing agent costs.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy