As homeowners look to speed up the selling process — and decrease the hassle and uncertainty of listing a home — iBuyers like Orchard are on the rise. But before committing to a quick sale, take a few minutes to learn more about how you could benefit or detract from this method.
Not all home sale situations are created equal. For homeowners looking to sell in a hurry because of unexpected life circumstances — or those unable to balance the cost of two mortgages at once — working with an iBuyer may be an option to consider.
For homeowners in three Texas metropolitan areas who are looking to sell quickly, Orchard offers buying and trade-in home sale options. Like with other iBuyers, Orchard all-cash offers are made based on internal calculations with additional costs and fees factored in.
If a homeowner would rather maximize profits on their home sale, they may prefer to reach out to a local real estate agent for free advice.
In the meantime, we’ve broken down how selling or buying a home with Orchard works, along with the pros and cons, and what past customers think of the process.
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Selling a House with Orchard Real Estate
- Homeowners interested in selling to Orchard begin by requesting a free offer. In it, they must provide details about the home beginning with the location, when it was built and so on. At present, Orchard buys single-family homes in the San Antonio, Dallas-Fort Worth, and Austin Metropolitan areas built between 1972-2014. In San Antonio homes must be valued between $125,000 and $400,000 and in Dallas-Fort Worth and Austin between $125,000 and $500,000.
- Within the next business day, Orchard Realty, the affiliated broker, will send an offer. With the information provided by the homeowner, they determine an offer based on home specs, recent sales of comparable homes in the area, and market trends. While Orchard does not negotiate the price directly, a homeowner can contact email@example.com if they believe additional information might change the price.
- The offer is valid for seven days. If a homeowner is not ready to move forward at the end of the week, they can request an extension or get another offer at a future date.
- Once a homeowner is ready to accept an offer, they can reply to the email or send a message to firstname.lastname@example.org. After that, Orchard Realty will confirm a closing date and send a purchase agreement for review and signature. The homeowner can choose their own closing date — any weekday in the next 14 to 60 days.
- A licensed home inspector from Orchard will conduct an inspection and walkthrough of the property. During the in-person visit, the Orchard representative will review the home’s condition to ensure it is consistent with the information provided online. Like traditional home sale inspections, they will review everything from the foundation to plumbing and other utilities. If repairs are necessary there are a couple of options. Orchard will do the work after closing and adjust the offer to cover the costs. Homeowners can also choose to make the repairs themselves or cancel the sale with no penalty.
- Also after signing the agreement, a title and escrow agent will be in touch to start the necessary paperwork. Like in traditional home sales, the seller is responsible for closing costs. Orchard will take care of paying off the home’s mortgage and pay out the rest of the money to the homeowner.
- After closing, Orchard will take care of any lingering repairs and ensure it is move-in ready. This can include upgrading countertops or flooring to make it more competitive on the market. They will photograph them and list it similarly to a real estate agent.
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Buying and Selling a house with Orchard Real Estate
- Homeowners interested in buying and selling with Orchard begin by filling out an online form that collects information to provide a home value estimate. Orchard Buy & Sell is designed for homeowners selling their current home and buying in the same area. Eligible participants must be selling a single family home built between 1972-2014 and be worth between $125,000 and $400,000 in San Antonio or between $125,000 and $500,000 in Dallas-Fort Worth and Austin.
- After the home inspection, Orchard gives the homeowner a guaranteed sale price along with the amount of equity needed to put toward buying a new home. The money is used to pay down their existing mortgage, which means the customer makes only one mortgage payment at a time. The inspection will also shed light on any issues that may affect the sale, such as faulty plumbing or a crack in the foundation.
- Orchard Realty, the company’s affiliated broker, will work with the homeowner to find a home in the San Antonio, Dallas-Fort Worth, or Austin area. With the guaranteed sale price, homeowners have a better idea of what they can afford.
- After the offer to buy is accepted, Orchard Realty lists the home. During the first 90 days, the seller gets to control their listing price. Once it sells, the homeowner receives sale proceeds that exceed the guaranteed sale price. If the home doesn’t sell within 90 days, the seller keeps the guaranteed sale proceeds.
What does it cost to work with Orchard Real Estate?
When buying and selling with Orchard Realty, homeowners pay one standard fee of 6% of the home’s sale price. This is comparable to the commission paid to realtors in traditional home sales. For homeowners who choose the sale option only, they will pay a 6.9% fee. Orchard offers a discount for customers buying and selling as they also receive a commission for the home being purchased.
In both cases, homeowners are responsible for paying taxes, utilities and HOA fees until the home is sold, which on average takes 14-60 days.
Pros and Cons of Working with Orchard Real Estate
- You pay only one mortgage at a time.
- Orchard takes care of renovations, listings, viewings and other details involved with selling a house.
- Homeowners can set their own timeline for moving without depending on agreements from other buyers and sellers.
- Offers are made based on internal calculations to benefit Orchard rather than the homeowner, which could leave some money on the table.
- You will still be responsible for taxes, fees, HOAs and other standard costs even after you close.
- Orchard’s offerings are limited to only three metro areas in Texas — you may not live in their service area.
Orchard Real Estate Reviews
Top Alternatives to Orchard Real Estate
Orchard Real Estate offers sellers a quick way out of a home in the three Texas cities it serves. And — like most iBuyers — that could be a great option for those with a fast timeline due to a looming foreclosure, divorce, or out-of-state job. Plus, you can set your own timeline and you’ll only be on the hook for one mortgage at a time.
Check out our in-depth guides below to learn how Orchard compares to some of its top competitors:
IBuyers are generally best for dire situations — so keep in mind that if you use these services, you’re likely to take a big hit on price and leave money on the table. Sometimes the traditional real estate agent can be the best route, and they can usually sell a home almost as fast as an iBuyer, especially in hot markets.
Before you pull the trigger with an iBuyer like Orchard, it’s worth considering all your options — seek advice from a local real estate agent. There’s no obligation to work with them and you’ll then have all the information to make the best decision for your situation.
For homeowners who want to balance selling with speed and maximum profits, consider working with a Clever Partner Agent. They are top-rated real estate agents who work with major brands, such as Century 21 and Keller Williams. They are experts in their local markets and know how to promote homes to sell and with the best profit.
As a benefit, they offer the same full service as other agents, but for a fraction of the cost. They work for a flat fee of $3,000 — or 1% if your home sells for more than $350,000. That’s a fraction of what paying a standard brokerage or iBuyer fee will cost. You get the same quality care, and can move into your new home with some extra cash in the bank.