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- If you're in a rush to sell your home in Houston, working with a cash homebuyer can speed up the process.
- You'll find national homebuyers, smaller local companies and iBuyers in the area, including We Buy Houses, Houston Home Buyers and Opendoor.
- While these companies make the transaction very quick and convenient, you probably won't earn as much money as you would in a traditional sale.
The traditional home-selling process can be lengthy, even if everything goes smoothly. According to July 2023 data from Redfin, the median length of time a Houston home spends on the market is 21 days. That means it takes three weeks from listing to 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 house-buying companies 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 also 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, which can be significant.
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 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 best price possible 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): Some Houston sellers choose the for sale by owner route, using services like Texas FSBO to advertise their homes on the local MLS. 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.
Many homes in Houston are selling in under a month, but working with a cash homebuyer can speed up the process even more. 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 selling with a local real estate agent. If you want to maximize your profits, a smart first step is to reach out to local agents who understand your specific area within the sprawling Houston market.
According to Redfin data, the median price for a Houston-area home was $335,000 as of July 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 you would with a traditional sale via local real estate agent — but you’ll get it faster, and with less hassle.
Redfin data shows that home sale prices in Houston rose a modest 1.3 percent from July 2022 to July of this year. However, the increase is much more significant on a monthly basis: Median prices have risen fairly steadily since January’s low of $298,250, hitting a high of $344,990 in May. They’ve slumped slightly since then, now standing at $335,000.