‘We buy houses’ companies in Houston
The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .
The traditional home-selling process can be lengthy, even if everything goes smoothly. According to April 2023 data from Redfin, the median length of time a Houston home spends on the market is 28 days. That’s a month from listing to going into contract, and it could be another month or more after that until your buyer’s financing is approved, all other details are settled and you finally sit down at the closing table.
But what if you need to sell your home fast? If speed is key, you might consider selling it to a company that will give you a quick cash offer, and close on an accelerated timeline as well (sometimes in as little as a week or two). You’ll often see these companies advertising “We buy houses!” on billboards and online. There are plenty of cash-homebuyer options in the Houston market — let’s take a look.
Cash homebuyers in Houston
A huge market like Houston offers a variety of homebuying companies to choose from. There are big national players, local operations and iBuyer options as well, each with its own considerations:
National ‘we buy houses’ companies
The aptly named We Buy Houses is one of the most well-known nationwide cash buyers. When you contact them for an offer, they’ll send a representative to assess your home and usually make an offer within 48 hours. Closing happens quickly, too, sometimes in as little as 7 to 14 days.
Another big national player is Homevestors, also known as the “We Buy Ugly Houses” company. It operates in a similar manner: It will provide a quick cash offer, and if you accept, you’ll be able to close the deal in as little as three weeks, with no closing costs.
Local cash homebuyers
Many companies that buy homes in Houston are locally owned as well. Here are a few:
- Houston House Buyers: Founders Jason Bible and Tom Perry, both Houston locals, promise better offers than competitors can make due to close relationships with area contractors.
- PPS House Buyers: Founded in 2017, PPS’s stated goal is to give homeowners flexible solutions for selling their home fast, with no commissions, fees or closing costs.
- Move On House Buyers: This family-owned company has been around since 2012. They buy properties in any condition and say they can make cash offers without an in-person home visit.
Houston is a big market for iBuying. The two biggest players in the field, Opendoor and Offerpad, both operate here and can make offers in as little as 24 to 48 hours and close very quickly. Orchard, which offers a unique buying-and-selling program that helps you sell your current home as well as purchase a new one, also does business in the Houston metro area. Note, though, that iBuyers may charge extra fees on the sale.
How do ‘we buy houses’ companies work?
Most of these companies are fix-and-flip operations: They typically offer low purchase prices, then make repairs and cosmetic fixes and resell the homes for a profit. The cash payment and super-quick turnaround time work to your benefit as a seller, but they benefit the company as well because the faster they can close, the faster they can get to work.
However, keep in mind that in exchange for the speed and ease on your end, you are sacrificing some potential proceeds. These are for-profit businesses that will not offer you top dollar for your home — they need to leave room to make money on their end. That doesn’t mean the deal won’t be “fair,” necessarily, but it almost certainly won’t be as much as you could make in a traditional sale with a real estate agent.
Another thing to keep in mind: Getting an offer from a homebuying company does not mean you have to accept it. You’re under no obligation, and they typically are not open to negotiations. If you do accept it, though, read all the paperwork extremely carefully before you sign anything.
Selling to a cash homebuying company is a good solution for many sellers, especially if you need the money from the sale fast. But it’s not for everyone. If you’re not in a big rush, here are some alternatives to consider for selling your Houston home:
- Traditional home sale: Working with a qualified agent in Houston will most likely get you the most money for your house. The process will take longer, and you’ll need to pay the agent’s commission, but you’ll end up with a higher return on your home sale.
- For sale by owner (FSBO): Many sellers choose the for sale by owner route. Before you sell without an agent, though, make sure you’re ready for a big commitment: There’s a lot of time and work involved, and a rookie mistake could cost you money.
- Renting your home: If you can afford to move without needing the profits from selling your current home, consider renting it out. Becoming a landlord can generate a steady supply of rental income, especially in a popular area.
A cash homebuyer speeds up the selling process, turning what could be a few months into a few weeks. You’ll get cash in your pocket quicker without having to make any repairs, which can be a particularly good option if your home is in need of serious work. But this expediency comes at a price. A homebuying company will likely offer you much less than what you could get with a local real estate agent. If you want to maximize your profits, reaching out to local agents is a smart first step.
According to Redfin data, the median price for a Houston-area home was $340,000 as of April 2023. However, the sale price of a house can vary largely depending on its size, condition, specific location and other factors. If you choose to sell to a cash-homebuying company, you can expect to get quite a bit less than that median — but you’ll get it faster, and with less hassle.
Redfin data shows that home sale prices in Houston rose a very slight 0.03 percent from April 2022 to April of this year. However, the increase is much more significant on a monthly basis: Median prices have risen very steadily since January’s low of $294,900 and now stand at $340,000.