Cash home buyers fall into five types: iBuyers, franchise networks, direct investors, trade-in programs, and local cash buyers, and they pay very differently. iBuyers average roughly 86 to 91 percent of resale value minus a 5 to 10 percent service fee, while franchises like We Buy Ugly Houses typically offer 50 to 70 percent of after-repair value. The right choice depends on your home's condition, your timeline, and how much net proceeds matter.
The 5 Types of Cash Home Buyers
Cash home buyers are not one category. They are five distinct business models, and lumping them together is the single biggest reason sellers leave money on the table. Each type prices differently, accepts different homes, and makes money in a different way. Knowing which one you are talking to tells you in advance roughly what percentage of your home's value to expect.
- iBuyers. Technology-driven buyers like Opendoor and Offerpad that use automated valuation models to make near-market offers on homes in good condition, then charge a service fee and resell with light updates. They operate in large metros such as Phoenix, Dallas, Atlanta, and Charlotte.
- Franchise networks. Brand-licensed local operators like HomeVestors (We Buy Ugly Houses) and We Buy Houses. They accept any condition, close fast, and price off after-repair value, but carry corporate royalty and national marketing costs that lower the offer.
- Direct investors. Independent fix-and-flip and buy-and-hold investors, including regional names like HomeGo, who buy as-is for their own portfolio. No franchise overhead, single take-it-or-leave-it offer.
- Trade-in and "buy before you sell" programs. Companies like Orchard and Knock that front the purchase of your next home and sell your old one, charging program fees that can reach 6 to 10 percent or more.
- Local cash-buyer marketplaces. Platforms like Home Pros that route one property to a vetted pool of competing investors who bid against each other, which pushes the net-to-seller higher than a single-buyer model on the same house.
The U.S. Census American Community Survey counts more than 140 million housing units nationwide, and the Federal Reserve's median sales price series (MSPUS) puts the median U.S. home sale price in the low $400,000s heading into 2026. Against numbers that large, the spread between buyer types, often 20 to 30 percentage points of value, translates into tens of thousands of dollars. That is why the comparison below matters more than any single brand name.
Cash Home Buyers Compared: The 2026 Decision Table
The table below scores all five buyer types on the five dimensions that actually decide your outcome: net to seller, fees, speed, condition accepted, and pricing transparency. Use it to narrow the field before you request a single offer.
| Buyer Type | Typical Net to Seller | Fee / Commission | Speed to Close | Condition Accepted | Best For |
|---|---|---|---|---|---|
| iBuyer (Opendoor, Offerpad) | ~86-91% of value, minus fee | 5-10% service fee | 14-30 days | Good condition only | Move-in-ready homes in big metros |
| Franchise (We Buy Ugly Houses, We Buy Houses) | ~50-70% of ARV | None, covers closing costs | 7-21 days | Any condition | Heavy repairs, hard deadline |
| Direct investor (HomeGo, local flippers) | ~60-75% of FMV | None | 7-21 days | Any condition | As-is sale, one fast offer |
| Trade-in program (Orchard, Knock) | ~market minus 6-10%+ in fees | 6-10%+ program fees | 30-90 days | Habitable | Buying and selling at once |
| Local marketplace (Home Pros) | ~70-82% of ARV | None | 7-21 days | Any condition | Competing bids, highest cash number |
The pattern is consistent: iBuyers win on price for pristine homes but exclude the majority of distressed properties and charge a fee, franchises win on certainty but pay the least, and a competitive marketplace tends to deliver the highest net on a home that needs work. No single row is right for everyone, which is exactly why the aggregator pages that crown one "winner" mislead sellers. Your home's condition picks the row for you.
How Much Do Cash Home Buyers Actually Pay?
Cash home buyers pay between roughly 50 and 91 percent of fair market value, and the exact figure is set by the buyer's business model, not by negotiation. A 2026 Clever Real Estate analysis of iBuyer transactions found Opendoor offers averaged about 91 percent of resale value and Offerpad about 86 percent, both before the service fee is deducted. Franchise networks and fix-and-flip investors anchor on after-repair value using the 70 percent rule, which is why their offers cluster at 50 to 70 percent of fair market value once repairs and target profit come out.
The clearest way to see the gap is in dollars. The table below runs a $350,000 home, near the national median, through each buyer type, assuming the home needs about $25,000 in repairs where condition matters.
| Buyer Type | Gross Offer Basis | Less Fees | Estimated Net to Seller |
|---|---|---|---|
| iBuyer (good-condition home, ~90%) | $315,000 | ~7% fee ($22,050) | ~$292,950 |
| Franchise (60% of FMV) | $210,000 | None | ~$210,000 |
| Direct investor (68% of FMV) | $238,000 | None | ~$238,000 |
| Local marketplace (76% of ARV) | $266,000 | None | ~$266,000 |
| Traditional MLS sale (~91% net) | $318,500 | ~6% commission + costs (counted) | ~$318,500 over 30-60 days |
Two lessons jump out. First, the iBuyer's headline 90 percent shrinks meaningfully after the fee, landing close to a strong marketplace bid once you account for the repairs an iBuyer would also deduct. Second, the franchise's no-fee pitch is the lowest net on the board. For a deeper look at how investors set these numbers, our guide to how the 70% rule works in real estate investing shows exactly where the floor comes from, and the brand-specific math is broken down in our Opendoor reviews and alternatives guide.
What Is the Difference Between an iBuyer and a Cash Buyer?
An iBuyer makes a near-market offer on a home in good condition and charges a fee, while a traditional cash buyer makes a discounted offer on a home in any condition and charges nothing. That one distinction governs almost everything else. iBuyers like Opendoor and Offerpad rely on an automated valuation model, so they need clean, recently built, easily comparable homes in dense metros to price accurately. They make their money on the service fee and on light-touch resale, not on heavy renovation.
A traditional cash buyer, whether a We Buy Houses franchise, an independent flipper, or a marketplace investor, makes money by renovating and reselling or renting. That model can absorb foundation problems, fire damage, code violations, or a hoarder cleanout that an iBuyer's algorithm would simply decline. The price is lower because the renovation risk is higher. Investopedia's overview of how iBuyers work is a clean neutral primer on the distinction.
For most sellers the decision tree is short. If your home is move-in ready and in a metro like Atlanta, Dallas, or Charlotte, get an iBuyer offer and compare it. If your home needs real work, the iBuyer will likely pass, and your best net usually comes from a competitive local marketplace. The Consumer Financial Protection Bureau's guidance on owning and selling a home is a useful checklist before you engage either type.
Do Cash Home Buyers Charge Fees or Commissions?
Some do and some do not, and the label matters far less than the final number. iBuyers charge a service fee, generally 5 to 10 percent of the sale price, which behaves like a real estate commission even though it is named differently. Trade-in programs like Orchard layer program fees that can total 6 to 10 percent or more once you account for the convenience and brokerage charges. Franchise networks and direct investors usually charge no commission and often cover standard closing costs, but they recover that "savings" by paying a lower price up front.
| Buyer Type | Service Fee / Commission | Closing Costs | How They Make Money |
|---|---|---|---|
| iBuyer | 5-10% service fee | Often deducted | Fee plus light resale margin |
| Franchise | None | Usually covered | Low purchase price, renovation resale |
| Direct investor | None | Usually covered | Low purchase price, flip or rent |
| Trade-in program | 6-10%+ program fees | Varies | Program fees plus brokerage |
| Local marketplace | None to seller | Usually covered | Investor-side spread, not seller fees |
The takeaway is to ignore the fee headline and ask one question: what dollar amount hits my account at closing? A no-fee franchise offer at 60 percent of value nets less than an iBuyer offer at 90 percent minus a 7 percent fee. Every offer is ultimately a percentage of your home's value, so anchor it against a real benchmark: the Federal Reserve's median U.S. home sale price series (MSPUS) shows where national values sit, and any cash offer should be measured against your local market value, not against the convenience the buyer is selling.
Are Companies That Buy Houses for Cash Legit or a Rip-Off?
The large cash buyers are legitimate businesses, and the real risk is price and pressure rather than legality. Opendoor is a publicly traded company that files audited financials with the SEC under CIK 0001801169. HomeVestors operates roughly 1,100 franchises under the FTC Franchise Rule and has bought more than 150,000 houses since 1996. These are real, regulated entities, not fly-by-night scams.
That said, "legal" and "fair" are different questions. A 2023 ProPublica investigation documented some franchise offers as low as 35 to 40 percent of value and high-pressure tactics directed at elderly homeowners and probate heirs, and a May 2025 federal wire-fraud guilty plea by a former top Dallas HomeVestors franchisee shows that brand credibility does not guarantee individual operator conduct. The practical defense is verification. Check the buyer's Better Business Bureau accreditation and rating, read recent Trustpilot reviews, and treat the corporate brand and the local operator as two separate things. Our HomeVestors complaints and alternatives guide and our New Western reviews and alternatives guide walk through how to vet specific brands. For independent verification, the Better Business Bureau lets you confirm a buyer's accreditation and complaint history before you ever take a call.
How Fast Can a Cash Buyer Close on My House?
Most cash buyers close in 7 to 21 days because there is no mortgage lender, no loan underwriting, and no appraisal contingency to clear. Franchise networks and local investors are often the fastest, closing in as little as 7 to 14 days when title is clean. iBuyers usually run 14 to 30 days because they conduct a more formal inspection and title review. A traditional financed sale, by contrast, takes 30 to 60 days from accepted offer to funded close, per National Association of Realtors transaction data.
Speed is the cash buyer's core advantage, and for a seller racing a foreclosure auction, a job relocation, or a probate deadline, three weeks of certainty can outweigh a higher but slower offer. The trade-off is always price for time. If you have 30 to 60 days, a listed sale typically nets more. If you have two weeks, cash is the realistic path. If you are facing a hard legal deadline, our guides on how to stop foreclosure in Texas and the broader timeline math will help you weigh the clock against the cash.
How Do I Compare Cash Offers to Know If One Is Fair?
Compare offers on net proceeds, never on headline price. The single most useful number is the exact dollar amount you will receive at closing after every fee and deduction, so ask each buyer to put that figure in writing. Then estimate your home's fair market value from recent comparable sales, and if the home needs work, estimate its after-repair value so you can see what percentage each offer represents.
A fair as-is cash offer on a home that needs significant repairs generally lands between 60 and 82 percent of fair market value, with competitive marketplace bidding at the top of that band and single-buyer franchise offers near the bottom. Follow three rules. First, collect at least two offers from different buyer categories, because one iBuyer and one franchise tell you almost nothing, while one iBuyer and one marketplace bracket the real range. Second, verify each buyer's Better Business Bureau and Trustpilot standing. Third, never accept the first number without a competing bid, since competition is the only force that reliably moves a cash price upward. The mechanics of estimating value are covered in our framework on the 70% rule and after-repair value.
Cash Home Buyers by Metro
Cash buyer availability and pricing vary by market, so the most useful comparison is local. Home Pros operates a competing-bid marketplace across 48 U.S. markets, and we maintain ranked, vetted lists of the top cash home buyers in each major metro we serve. Start with your city below to see who actually pays the most in your area.
- Top cash home buyers in Houston, TX
- Top cash home buyers in Dallas, TX
- Top cash home buyers in San Antonio, TX
- Top cash home buyers in Atlanta, GA
- Top cash home buyers in Charlotte, NC
- Top cash home buyers in Nashville, TN
For sellers weighing a specific national brand, our Opendoor reviews and alternatives guide runs the same fee-stack analysis on the largest iBuyer. The pattern across every metro is the same: the highest net on a repair-needed home almost always comes from putting buyers in competition rather than accepting a single offer.
Frequently Asked Questions
What is the best company that buys houses for cash in 2026?
There is no single best company, because the right cash buyer depends on your home's condition and timeline. For a move-in-ready home in a major metro, an iBuyer like Opendoor or Offerpad pays the highest percentage, roughly 86 to 91 percent, but charges a 5 to 10 percent fee. For a home needing repairs, a local marketplace that routes the property to competing investors usually nets the most. Franchise networks close fast but pay the least, typically 50 to 70 percent of after-repair value. Always collect at least two offers before signing.
How much do cash home buyers actually pay, as a percent of market value?
It depends on the buyer type. Per a 2026 Clever Real Estate study, iBuyers average about 91 percent of resale value at Opendoor and about 86 percent at Offerpad before fees, then deduct 5 to 10 percent. Franchise networks and fix-and-flip investors price off after-repair value and typically offer 50 to 70 percent of fair market value. Local marketplaces with competing bids commonly land at 70 to 82 percent of after-repair value. A traditional MLS sale nets roughly 88 to 93 percent but takes 30 to 60 days.
Are companies that buy houses for cash legit or a rip-off?
Most are legitimate, legally registered businesses, not scams. iBuyers like Opendoor are publicly traded and file with the SEC; franchises like HomeVestors operate under the FTC Franchise Rule. The real risk is price and pressure. A 2023 ProPublica investigation documented some franchise offers as low as 35 to 40 percent and high-pressure tactics. Verify the buyer's Better Business Bureau rating and Trustpilot reviews, never sign at the first visit, and always pull a competing offer.
What is the difference between an iBuyer and a cash buyer?
An iBuyer like Opendoor uses an automated model to make a near-market offer on homes in good condition, charges a 5 to 10 percent fee, and resells with light updates. A traditional cash buyer targets homes in any condition, prices off after-repair value, and pays less because the model relies on renovation profit. iBuyers pay more but accept fewer homes and charge fees; cash investors accept any condition but pay less. iBuyers also operate only in larger metros.
Do cash home buyers charge fees or commissions?
It varies. iBuyers charge a service fee, generally 5 to 10 percent, which acts like a commission. Franchises and direct investors usually charge no commission and often cover closing costs, but make their margin by paying a lower price. Trade-in programs like Orchard charge program fees of 6 to 10 percent or more. A no-fee offer at 60 percent of value nets less than a 90 percent offer minus a 7 percent fee, so compare the final dollar amount you walk away with.
How fast can a cash buyer close on my house?
Most cash buyers close in 7 to 21 days because there is no lender, appraisal contingency, or financing underwriting. Franchises and local investors often close in 7 to 14 days. iBuyers typically take 14 to 30 days for a more formal inspection and title process. A traditional financed sale takes 30 to 60 days. Speed and price are a trade-off, so confirm the timeline in writing and weigh it against the higher net a slower sale could deliver.
Opendoor vs HomeVestors vs a local cash buyer: which pays more?
On a clean, move-in-ready home in a major metro, Opendoor usually pays the most in raw price, around 91 percent, but a 5 to 10 percent fee narrows the gap. On a home needing repairs, Opendoor often will not make an offer, so the choice becomes HomeVestors versus a local buyer. There, a local independent buyer or competitive marketplace almost always beats the franchise, because franchise royalty and marketing costs get priced into a lower offer.
Founder of Home Pros, operator across 48 markets, closed 300+ investor transactions since 2021. More about Trevor