Companies That Buy Houses for Cash: An Honest Comparison

The established ones are. iBuyers like Opendoor and Offerpad are publicly traded or venture-backed companies, franchise brands like We Buy Ugly Houses operate under a national franchisor, and many local buyers have bought in the same city for decades. The risk is not the category, it is the individual buyer. Confirm they are the actual purchaser rather than someone who plans to hand the contract to another party, ask for proof of funds, close through a licensed title company or closing attorney, and never pay an upfront fee to receive an offer.

There is no single best one, because they solve different problems. If your home is newer and needs almost nothing, an iBuyer will usually make the highest offer, though its published service charge and post-inspection repair credits reduce it. If the home needs real work, a franchise or direct cash buyer will give you a workable number that an iBuyer will not. If your situation is unusual — title problems, an inherited property, tenants in place — a direct buyer or an experienced local buyer will handle it while the automated models decline it.

Less than full retail market value, in every case. The offer has to absorb repairs, several months of holding costs and the cost of reselling the home, plus the buyer's profit. Anyone promising full market value in cash with a seven-day close is either quoting a number that will drop after inspection or is not the one actually buying. What varies between companies is how much less, how honest they are about why, and whether the number holds through closing.

You submit the address, they estimate what the home is worth once repaired, subtract the renovation cost and their costs of holding and reselling it, and present the remainder as your offer. You sign a purchase agreement, they open escrow with a title company, title is searched for liens and ownership issues, and you close on the agreed date. There is no lender, no appraisal and no financing contingency, which is why the timeline is measured in days rather than months.

It depends on the buyer. iBuyers charge a published service fee — Opendoor lists 5% — and still deduct normal seller closing costs and post-inspection repair credits. Franchise and direct cash buyers typically charge no commission and build their margin into the offer instead. SilverCrest charges no commission, no listing fee and no service fee, and covers standard closing costs on our side. Always ask for the number you will actually receive at closing, in writing, rather than the headline offer.

List with an agent if your home shows well, you can afford to wait three to six months, and you can live with repairs, showings and the chance that a buyer's loan falls through. Sell to a cash buyer if you need a certain closing date, cannot or will not make repairs, are facing a deadline like foreclosure or a job relocation, or simply value knowing the exact date and dollar amount over squeezing out the highest possible price.

Once title is clear, seven days is realistic with a direct cash buyer. iBuyers typically run two weeks to two months because they schedule an assessment first. The real constraint is almost never the money, it is the title work: unpaid liens, a probate that has not been completed, an unreleased old mortgage, or a missing heir's signature can each add weeks. A good buyer identifies those in the first week rather than the last.

Direct buyers, franchise buyers and local investors generally do, including homes with fire or water damage, foundation issues, code violations, hoarding conditions or tenants still living there. iBuyers generally do not — their model depends on a quick, light resale, so they decline older homes and homes needing structural work. If your home would not pass a lender's inspection, the iBuyer route is usually closed to you.