When you want to avoid the hassle of a traditional listing, Opendoor offers a convenient alternative. As an iBuyer, the company can make an all-cash offer on your home and close on your timeline — no need for repairs, showings, detailed inspections, or lengthy negotiations.
However, the company typically pays less than the market value. It also charges a 5% service fee (comparable to a standard real estate commission), plus repair and closing costs.
While many sellers find the convenience of selling to Opendoor well worth the cost, others find a better fit with another top-cash home buyer or realtor offering competitive commission rates.
Our Opendoor rating
| ⭐️ Opendoor: Overall score | 4.25 🟡 |
|---|---|
| Service quality | 4.5 🟢 |
| Offer quality | 4.25 🟡 |
| Fees and other costs | 4.0 🟡 |
| Customer reviews | 4.0 🟡 |
| Credibility | 4.5 🟢 |
Is Opendoor right for you?
Opendoor gets high marks for offering home sellers a truly convenient alternative to a traditional real estate listing. The company makes offers much closer to fair market value than traditional house flippers. You can skip repairs and showings, and inspections can be done by phone/video. Plus, you can choose your own closing window of 14–60 days, and modify the move-out date if needed.
However, there are a couple of drawbacks to keep in mind:
- You'll sell for less than market value. While Opendoor used to pay close to market value for homes, more recent data from analyst Mike DelPrete suggests its offer amounts have declined to well below what they were a couple of years ago.[1]
- Costs add up. Some sellers claim your offer can be dramatically lowered after the company's home inspection, when repair costs are assessed. You'll also pay a service fee of 5%, which is on par with the average real estate commission.
- Only certain homes qualify. Opendoor generally only buys single-family homes and townhomes, in good condition, that fall within the typical price range for the area. It currently makes offers in about 50 major U.S. cities.
"For my situation, I needed to sell fast and the offer they gave me was about $8K below what I would have listed it for (spoke to 3 realtors)," says a Reddit user who sold his home to Opendoor in January, 2024. "I did it for speed, convenience, and no showing or waiting on buyers hassle, while understanding that I will have to bite the bullet on a few thousand [dollars] and that's what ended up happening."
If you have a home that needs significant work or need to get your home's full asking price to secure a new house, selling to another company that buys houses for cash or listing with a realtor (particularly from a brokerage offering competitive commission rates) may be a better alternative.
Top Opendoor alternatives
Sell to another cash buyer
Opendoor competitors include other iBuyers like Offerpad and both local and large-scale investors that flip homes for a profit.
While iBuyers tend to pay closer to market value than traditional 'we buy houses' companies, they operate in limited markets and typically don't buy homes that need a lot of work or have financial complications like liens attached.
Cash offer networks like Clever Offers let you compare offers from multiple cash buyers, which could get you a more competitive price for your house.
Here are some of the top alternatives to Opendoor.
Customer Rating
Service Fee
Time to Close
Why We chose it
Pros and cons
Specifics
Clever Offers helps you find and compare offers from leading cash buyers in your area — all with a proven track record of ethical dealings with home sellers.
Because Clever's network includes local/national investors, iBuyers, and agents with experience listing homes as is, you get a range of offers to choose from — including alternative deal types that deliver a higher payout over time.
The 5-star rated company gets top marks for helping you make an informed decision without pressuring you to move forward. See our full Clever Offers review.
Customer Rating
Service Fee
Time to Close
Why we chose it
Pros and cons
Specifics
As an iBuyer, Offerpad stands out for its perks, including free local moves and a 3-day grace period to wrap up your move after closing.
You can choose between listing with an agent and getting a cash advance for home prep/repairs or taking a competitive cash offer with flexible closing dates, ranging from 8–90 days.
If you accept a cash offer, be prepared for relatively high repair costs — which customers report can substantially reduce your final offer. See our full Offerpad review.
Customer Rating
Service Fee
Time to Close
Why we chose it
Pros and cons
Specifics
We Buy Houses is a solid choice if you need to sell fast or have a home that’s difficult to sell. You don’t need to worry about repairs and can close extremely quickly, sometimes in just a week.
The company has been around since 1997, carefully vets its investors' reputations, and is available in most of the U.S.
Franchise owners have a high degree of independence when it comes to the types of offers they can make. While the customer experience may vary between locations, most offices maintain above-average ratings. See our full We Buy Houses review.
» MORE: Looking for more cash buyers near you? Check out the best companies that buy houses for cash to see our comprehensive guides for all 50 states.
List with a real estate agent
While real estate agents can’t guarantee a fast sale, they can create a strategy to sell on your timeline. And selling with a realtor is usually the best option if you want to maximize your profit.
Agents can get you more money for your home by creating competition among multiple buyers. Also, agents have an incentive to get the most money for your home, since the more you make, the more commission they earn.
A traditional real estate agent charges 2.5–3% in commission, but you can find full-service agents who charge a lower listing fee, around 1.5–2%. That’s lower than Opendoor’s service fee.
We recommend interviewing multiple agents before you choose one.
» MORE: The Best Low Commission Realtors and Brokers
In-depth Opendoor review
Service quality
📊 Our rating: 4.5/5
|
Review after review for Opendoor mentions its efficient, stress-free selling process. You can get an offer within 48 hours of submitting your property information online and close in as little as 2 weeks (or take as long as two months, if you need time to find a new place).
While Opendoor requires a home inspection before making a final offer, it can be completed mostly by phone and video. The exception is the exterior inspection, which involves a company representative or two examining your property's outdoor features like roof, structure, and AC unit. If you don't like the final offer amount, you can cancel the contract without penalty.
Closing with Opendoor is also simple. You provide any needed documents (like your current mortgage) by email and sign the paperwork electronically. On moving day, you send photos of the property's move-out condition, and Opendoor deposits funds into your account within a day or two.
The main question for sellers to weigh is whether the level of convenience offered by Opendoor is worth a lower sale price.
Offer quality
📊 Our rating: 4.25/5
|
How much does Opendoor pay?
As a general rule, Opendoor pays more than a typical investor's cash offer. However, Opendoor still typically pays less than what sellers could get on the open market. In 2023, for example, offers from Opendoor were significantly lower than Zillow’s estimated market values,[1] according to iBuyer expert Mike DelPrete.
More recent home sellers, like this Reddit user, complain that their Opendoor offers were as much as 15% below their home's estimated market value.
Yet, other customers claim to have gotten an even better price from Opendoor than what the market actually supported: "Sometimes they make mistakes," says Reddit user. "In my case, Opendoor paid me about 20% more than what they eventually resold my house for a few months later."
Our own analysis of 150 homes sold by Opendoor between 2023 and 2024 corroborates the inconsistent offers customers seem to have gotten from the iBuyer.
- On average, Opendoor sold these homes for 5.11% (or $19,373) more than they bought them for, after about 40 days on the market.
- However, 27% of the recent Opendoor properties we analyzed sold for less than Opendoor had initially paid for them. And 72% saw a drop in list price before they sold — suggesting that Opendoor often overestimates their market value.
Average purchase price-to-resale price for recent Opendoor listings
| Avg. Opendoor purchase price | $543,038 |
| Avg. list price | $597,860 |
| Median days on market | 40 |
| Avg. resale price | $562,411 |
| Avg. price difference (bought-to-resold) | $19,373 |
| Avg. % made by Opendoor | 5.11% |
| Source: Internal analysis of 150 homes bought and sold by Opendoor between January 2023 and January 2024. Data sourced from Bright MLS and public property records. | |
Opendoor's preliminary offer vs. final offer
Keep in mind that Opendoor's initial offer is almost always higher than its final offer. That's because the "instant" cash offer is an estimate based on information you provide to Opendoor about your home's size, age, and features. It doesn't account for the actual condition of your home.
Jesse Zappia of Charlotte, North Carolina, sold his home to Opendoor in 2022. During our Zoom conversation, he recalled a nearly $40,000 difference between Opendoor's preliminary offer and final offer price: “Their initial offer was somewhat closer to the $600,000 number. And then when they came back and gave me a final offer, it was, I think, $560,000 or something. So it was a significant jump.”
Other sellers have had similar experiences, complaining that final offers are lowered by as much as half the initial estimate.
| Before you accept an offer from Opendoor, we highly recommend comparing it to offers from a few other well-rated cash buyers. You should also have a good idea of what your home could sell for 'as is' through a traditional listing. Most realtors are willing to run an analysis of comparable homes in your area for free, and cash offer networks like Clever Offers can help you shop for multiple offers from legitimate buyers. ⚡ Compare offers from leading investors and iBuyers — plus get an expert realtor's opinion on what your house is worth. Clever Offers is free to home sellers, with no added fees or pressure to commit. Get Cash Offers. |
Fees and other costs
📊 Our rating: 4/5
|
Opendoor fees include a 5% service charge, plus traditional closing costs of about 1%. But you also need to pay for repairs, which can vary substantially. In fact, several Opendoor reviews complain about repair costs being several thousand dollars, substantially lowering the final offer.
In February 2024, Google user Jon Baugues had this to say about Opendoor's repair costs:
"As many others have said you get an initial 'offer' that according to them can go up or down. But yet only goes down. Plus, they have 30k in repair costs that are deducted that they are unable to itemize except saying paint and flooring. They lowball you while technically keeping the purchase price higher so their comps remain high. Way better options than selling to them."
For Bradley Carpenter, who sold his home to Opendoor in 2022, the company's repair fees were about $7,000 — just over 3% of the offer price.
However, Carpenter negotiated by showing Opendoor a competing offer from Offerpad. Over Zoom, he told us, “I sent [Opendoor] the Offerpad offer, and I said, ‘Hey, Offerpad offered me $3,000 more than you. Are you guys willing to come up a little bit?’ As a result, Opendoor reduced their bill for repair fees by $3,000."
If repair costs seem high to you, you can try to negotiate or reject the offer without penalty.
Opendoor fees
| Service fee | 5% |
| Closing costs | ~1% |
| Repair costs | Vary (1-2% min.) |
| Total | 7–10% |
Opendoor customer reviews and complaints
📊 Our rating: 4/5
|
Customer reviews for Opendoor are largely positive. The company maintains an average rating of 4.2/5 across 3,768 total reviews on sites like Better Business Bureau, Google, Reviews.io, and Trustpilot.
While Reviews.io boasts the majority of Opendoor's positive reviews, customer ratings on consumer sites like Google, Better Business Bureau, and Trustpilot tend to be much lower, suggesting that Opendoor may be soliciting customer reviews specifically for that platform.
Additionally, negative Opendoor reviews have increased since 2022. This trend likely reflects Opendoor making lower offers and being more selective about what properties it buys than it used to.
Opendoor reviews and complaints touch on the following themes:
✅ Hassle-free selling process
Several reviews from past home sellers praise the ease and convenience of selling to Opendoor.
For example, reviews.io user Crystal had this to say about selling with Opendoor: "My experience couldn’t have gone any better. The process with Opendoor was exactly what I was looking for. I needed a quick sale, sold as is, and without me having to do any repairs…and that’s exactly what I got!"
This seller shared a similar experience: “I was working a full-time job and building a new home (personally). I did not have time for a real estate company and dealing with an agent, showings, and all the things that go into that. Opendoor made it very easy to show my home, proceed through closing, and sell my home with minimal effort.”
✅ Fair offers when measured against the convenience
Other reviews, such as this one from Trustpilot mention that, while Opendoor may not give you as much as you could sell for on the open market, offers are generally worth the convenience:
"For me, the cut they take off of the price of your home is well worth the hassle they remove from the process. I was able to set the date that we closed, not have to worry about preparing for showings, I didn't have to worry about how long it would be on the market before sale, and I was able to put that time and energy into planning the rest of my move."
This customer felt similarly, stating:
"With the uncertainty of the housing market, I felt Opendoor's offer was really fair. Not having to do repairs, deep cleaning, or open houses was a huge weight off for me. I loved choosing my close date. They made it incredibly simple. They even sent a mobile notary to me to sign the papers, very convenient and simple. I just had to empty the house and submit my photos. I got a confirmation and the money in my bank on my close date. Might not be for everyone, but it was perfect for me."
✅ Good customer service
Other positive Opendoor reviews say that customer service was responsive and quickly addressed any issues.
For example, this seller appreciated that “everyone was very professional and was there whenever I needed any assistance.” Another said, “My contact was amazing and very communicative. Professional and no-pressure style.”
❌ Final offers that are much lower than the initial estimates
Many Opendoor reviews from sellers mention final offers being well below initial offers.
For example, this reviewer said, “I was given an initial quote that was around market value. Went through all the steps and when the final offer came in it was over $100,000 less than the initial amount.”
In December 2023, Trustpilot user Donna H. reported a final offer that was only half of the initial estimate: "Their original estimate for my home was $257k–297k. After I meet with one of their representatives the actual offer was $162k. They wasted my time and mislead me."
Compare multiple offers from trusted cash buyers in your area against the sale price you'd get with an agent. Clever Offers is free, and there's no obligation to move forward with an offer. Simply tell us about your property, and we'll do everything we can to get you the best possible offer terms for your home.
Get Cash Offers❌ Inflated repair costs
Reviewers like Robert B. from Trustpilot note shockingly high repairs costs from Opendoor: "I received an initial offer from Opendoor, and it was low, but I figured the virtual walk through would help raise it. Not only was the final offer $10,000 lower than the initial, they added $50,000 in repairs and cited "market conditions" as to why it was lower.
To add insult to injury, some sellers, like Charles Nickum on Trustpilot note that Opendoor doesn't actually make all of the repairs it charges for before relisting the house:
"The big issue I have is the repair cost estimate. We sold the house and 2 weeks later its on the market for 32k more, which I don't mind at all. I just know they didn't spend what their repair cost estimate was based on the pictures. I also remember the agent telling me if the repairs came in lower its possible we might get money back. It's after closing now so I don't see that happening."
❌ High prices and low-quality repairs on Opendoor listings
Home buyers tend to have poorer experiences with Opendoor than sellers. Customer reviews from buyers claim atypically high prices that Opendoor refuses. to negotiate and shoddy workmanship on repairs.
For example, this buyer claimed, “After [Opendoor was] refusing to negotiate on price and not disclosing any issues on the house, we paid near the top of the appraised value for a house from the 70's and so far it's ended up having extensive severe termite damage, live termites, leaky pipes, and poorly installed new flooring that isn't level and is breaking apart.”
Google user Steve L. shared a similar experience:
"The place I bought was nice but I paid top dollar for it. I get the impression that they use the cheapest possible contractors who do shoddy work. I had to replace the AC unit, water heater, garbage disposal, faucets, disposal, washer, dryer, refrigerator. I also repainted. All in the first 3 months. [...]They skimp on everything. They would not pay for a home warranty. If you have to buy from them assume worst and factor that into your bid."
If you're viewing an Opendoor property, find a real estate agent who can help you spot potential problems, and get a thorough home inspection before closing.
Credibility
📊 Our rating: 4.5/5
|
Founded by Eric Wu in 2014, Opendoor is the nation's first and largest iBuyer. It currently operates in over 50 metros across the U.S. — purchasing about 1,000 homes a month, down from nearly 6,000 per month at its purchasing peak in August, 2021. It also has more than 3,500 mostly positive reviews from customers.
Opendoor shows a fair amount of transparency when presenting its offer, which includes its calculations for your home value as well as fees and closing costs. The report details the price of comparable homes that have sold recently in your neighborhood. It also accounts for unique aspects of your home that could affect value, such as a finished basement, proximity to quality schools, and walkability to shopping or public transit.
The home assessment also includes repairs needed before Opendoor sells the house, and how the costs of these repairs will affect your home's sale price. However, sellers have complained that Opendoor's repair deductions are out of line with realtors' assessments of the work that needs to be done on their home.
How does selling to Opendoor work?
Selling your house directly to Opendoor is usually a simple process. Here’s how it works.
1. Request an Opendoor preliminary offer
To get an Opendoor preliminary offer, you fill out an online form with basic details about your property. If your home is eligible, you receive an initial cash offer, usually within 24 hours.
2. Schedule an inspection
Your final offer is contingent on a home inspection, which you schedule after receiving your preliminary offer. The inspection's thoroughness can vary, but several sellers told us the in-person inspection was surprisingly quick.
Bradley Carpenter, who sold his house to Opendoor in 2022, only had to submit photos of the rooms of his house. “They didn't do an interior inspection," he said. "They sent these three guys out and they just walked around the house, basically an exterior inspection.”
That said, Opendoor has gotten pickier about which properties it buys, and more recent sellers claim that a brief interior inspection was part of the process.
3. Receive a final offer
After the inspection, you receive your final cash offer. This offer accounts for any necessary repairs, which vary but can be tens of thousands of dollars. It will also include your anticipated closing costs and Opendoor's service fee, which most sellers claim are pretty standard (ranging from 0.5–1%).
You can walk away without penalty if you decide not to accept the final offer.
4. Sign the purchase agreement and choose a close date
If you sign the purchase agreement, you get to choose your closing date. Opendoor also lets you change your closing date as long as it’s not within seven days. Opendoor generally uses its own title insurance company, which requests documents from you via email.
You can also stay in the home for up to 17 days after closing using Late Checkout. Opendoor charges around $100–400 per day and asks for a $2,000 security deposit.
Verify the Late Checkout fees beforehand. We talked to one seller who said Opendoor allowed him to stay for seven days after closing for free.
5. Close and get paid
On your closing date, you follow instructions on the Opendoor app. The instructions include uploading photos of your property on the day you move out. If you paid for Late Checkout, Opendoor returns your security deposit to your account shortly after closing. It deposits the funds from the sale into your account within a few days.
What types of homes does Opendoor buy?
Opendoor has high standards for the homes it buys. Your property needs to be:
- In fairly good condition
- A single-family home or townhome (condos and duplexes are accepted in some areas)
- Constructed after 1930
- Worth under $1.4 million (ideally $100,000–600,000)
- With clear ownership
- Owner-occupied or vacant at close
Distressed or hard-to-sell properties tend not to qualify. For example, Opendoor doesn't purchase properties that:
- Are in foreclosure or short sale
- Are damaged by fires, floods, or natural disasters
- Use septic systems
- Contain unpermitted additions
- Are in a flood zone
- Contain dated building materials
- Have significant structural or foundational issues
Even if your property meets Opendoor’s criteria, there’s no guarantee the company will make a cash offer. Other factors, like local market conditions, also determine whether Opendoor will buy your house.
Opendoor’s cancellation policy
According to Opendoor's website, you can cancel your contract at any time before closing.
There's no penalty for canceling the sale. Opendoor's main competitor, Offerpad, charges a 1% cancellation fee.
How does buying from Opendoor work?
Buying from Opendoor is similar to buying the traditional way. Here’s how the process works.
1. Search for properties online
You can search for homes to buy through Opendoor’s website. By default, Opendoor lists all homes for sale on the local MLS. If you want to see only homes owned by Opendoor, go to the More Filters menu and check the box “Opendoor homes only.”
2. Get pre-approved for a mortgage
You need to get pre-approved for a mortgage before you can tour Opendoor-owned homes. Opendoor is partners with a mortgage provider called Lower. While Opendoor may recommend working with Lower, you have no obligation to do so. Shop around to make sure you get the best mortgage deal.
3. Tour a house with the Opendoor app
When you find a home you like, you can schedule a tour. You can self-tour most Opendoor-owned homes via the Opendoor app. Just choose a time that works best for you and tour without a real estate agent. Homes that Opendoor doesn't own typically require an agent to be present during the tour.
4. Make an offer
To make an offer on an Opendoor house, you can use your own agent. Opendoor often lists two prices on its homes — one if you make an offer with your real estate agent and a lower one if you buy "directly" from Opendoor. The buy direct option gives you almost no room to negotiate, which is why the price is lower.
However, even if you make an offer with an agent, don’t expect Opendoor to negotiate much on its price.
Barry Richards, Principal Broker at EXIT Realty Garden Gate Team in Springfield, Tennessee, told us that Opendoor tends to price homes high and wait until someone is willing to meet that price. He said, “They don't tend to negotiate much on whatever current price they have.”
Opendoor may recommend you use an Opendoor agent if you don't already have a realtor. You have no obligation to do so, and you can proceed with or without your own realtor.
5. Schedule an inspection and close
If Opendoor accepts your offer, you need to schedule an inspection and negotiate any repairs and closing costs. Unfortunately, Opendoor homes sometimes have rushed repair work, so make sure you get a thorough inspection.
After you sign the agreement and finalize the inspection, you can choose your close date. The entire buying process typically takes 14–45 days.
Other Opendoor services
Aside from instant cash offers, other Opendoor services include title insurance and financial services through its partnership with Lower. Because of market conditions, a few Opendoor were discontinued, such as Opendoor Home Loans.
Opendoor Buy & Sell
Opendoor Buy & Sell (formerly Opendoor Complete) allows you to coordinate selling your current home and buying a new one. That way, you can avoid multiple moves, mortgages, and closing dates. You sell your home directly to Opendoor, use the company's cash to make an offer on a new home, and coordinate closing dates.
Opendoor Exclusives
Opendoor Exclusives is an off-market list of homes that Opendoor is offering at a lower price. The homes are ones that Opendoor has purchased and renovated. They are listed at a discounted price for 14 days. If they don't sell, they're listed on the MLS for a 2–4% higher price.
Opendoor Title
In 2019, Opendoor acquired OS National, a national title insurance company.[2]
As a result, Opendoor can now offer title insurance and escrow services to customers internally through Opendoor Title.
Refinancing with Lower
Opendoor partners with Lower, a financial technology platform, to help customers save money when refinancing their mortgage.
Opendoor locations
Opendoor is currently active in these markets across the country:
- Alabama: Birmingham
- Arizona: Phoenix, Prescott, Tucson
- California: Los Angeles, Riverside, Sacramento, San Diego, San Francisco Bay Area
- Colorado: Colorado Springs, Denver, Northern Colorado
- Florida: Jacksonville, Miami, Orlando, Tampa, Southwest Florida
- Georgia: Atlanta
- Idaho: Boise
- Indiana: Indianapolis
- Massachusetts: Boston
- Michigan: Detroit
- Minnesota: Minneapolis–St. Paul
- Missouri: Kansas City, St. Louis
- Nevada: Las Vegas, Reno
- New Mexico: Albuquerque
- New York: Long Island, Lower Hudson Valley
- New Jersey: Various counties
- North Carolina: Ashville, Charlotte, Greensboro–Winston, Raleigh–Durham
- Ohio: Cleveland, Columbus, Cincinnati
- Oklahoma: Oklahoma City
- Oregon: Portland
- South Carolina: Charleston, Columbia, Greenville
- Tennessee: Chattanooga, Knoxville, Nashville
- Texas: Austin, Corpus Christi, Dallas–Fort Worth, Houston, Killeen, San Antonio
- Utah: Salt Lake City
- Washington, DC
FAQs
Is Opendoor legitimate?
Yes — Opendoor is a legit company that buys and sells single-family homes in over 50 cities across the country. Opendoor charges a 5% service fee to home sellers and can close in as little as 14 days, but the company's instant offers are below market value. Opendoor fees are deducted from the home's sale price.
Opendoor was founded by Eric Wu in 2014 as the first iBuyer. Other companies, like Offerpad, work similarly to Opendoor.
Opendoor has raised a combined total of $1.9 Billion from venture capital investors since 2013, and went public on December 21, 2020.[3]
Does Opendoor pay a fair price?
According to industry experts and prevailing data, Opendoor pays less than what sellers could get on the open market, although offers can be stronger in a seller's market. At the beginning of 2023, offers from Opendoor were significantly lower[1] than Zillow’s estimated market value, according to iBuyer expert Mike DelPrete.
Does Opendoor negotiate?
You can ask an Opendoor representative to re-evaluate your cash offer if you feel like the company has missed key features of your home that could affect its value, but your ability to negotiate may be limited by the company's strict purchase criteria.
If you're buying a home from Opendoor, you or your buyer's agent can try to negotiate the price point, but according to Opendoor reviews, customers claim the company likes to sell close to the listing price.
Does Opendoor pay closing costs?
Opendoor does not cover closing costs — whether you're buying, selling, or trading in. This stands in contrast with a normal real estate transaction where who pays what closing costs is typically up for negotiation.
That said, one of the benefits of selling to Opendoor is there are no hidden fees. Everything, including how much you'll have to pay in closing costs, will be presented to you before you accept the final offer.
Are Opendoor offers legitimate?
Yes, Opendoor is a legitimate company to sell your home through. Your home purchase price will be lower than market value and you'll be subject to Opendoor fees, but the entire process is quick and stress-free. Selling with Opendoor is a great solution if you're looking to sell fast.
How Opendoor makes money?
Opendoor's business model relies on buying houses and then reselling them on the open market for a profit. Opendoor also makes money with its 5% service fee.
» MORE: Is Opendoor worth it?
Which is better: Opendoor or Zillow?
Opendoor and Zillow used to be the top iBuyers in the industry. In November 2021, Zillow shut down its iBuying business.
Related reading
Methodology
We evaluate each company that buys houses for cash based on four core criteria and create a weighted score:
- Service quality (20% of final score)
- Offer quality (20% of final score)
- Fees and other costs (20% of final score)
- Customer reviews (20% of final score)
- Credibility (20% of final score)
Service quality
Customer experience. We rely on secret shopping and fact-checking interviews with company representatives to look for indicators that the company is professional, communicative, customer-focused, and ethical in its dealings with customers. We verify this information against customer reviews and interviews with past customers or professionals (realtors, former employees) who have had direct experience working with the brand.
Offer quality
Price. While nearly all cash buyers pay less than market value for homes, we look at how competitive the company's offers are compared to similar companies based on customer reviews and insights. Where available, we also pull MLS data to look at actual purchase prices vs. resale prices for each company.
Purchase criteria. We also look at the company's purchase criteria to see how flexible and accommodating they are in making offers. Companies that offer a fair price for homes that other buyers won't purchase can still get a high rating for offer quality.
Fees and other costs
Competitiveness. We look at how the company's fees and other costs compare to competitors.
Value. We consider whether the fees are justified by the value offered.
Customer experience
Review analysis. We perform an in-depth analysis of all the available customer reviews to determine trends. We break down the reviews by theme and sentiment, and filter out spam reviews to determine our rating.
Company responsiveness. Negative reviews are part of doing business; however, we take note of whether a company is actively involved in resolving customer complaints.
Credibility
Trust signals. We look at how long the company has been in business, the number of verified customer reviews it has, how willing the company was to answer questions about their business model when we contacted them, and how easy it is to find detailed information on their website — including the names and contact details of specific team members. We also look at customer reviews indicating whether the company acts with honesty and integrity in their business dealings.