✍ Editor’s Take: Sundae is a marketplace that pairs home sellers of distressed properties with investors. Compared with other cash buyer companies, Sundae’s business model gives you the best chance for a high off-market offer.
Sundae is a real estate marketplace connecting sellers of homes in poor condition with a network of qualified investors who buy houses for cash. Their service attempts to solve a common problem: Home sellers only receive one low off-market offer from a cash buyer company.
Sundae allows vetted investors to compete for your property by submitting bids, which usually guarantees that you’ll have multiple offers to choose from.
The company’s main area of operation is in California — although they have recently expanded into the Atlanta and Tampa metros. Sundae's services are free with zero obligation, so you can back out at any time.
While this may seem like a good option if you need to sell fast or your home is dilapidated, it’s worth comparing all of your options before you sign on with Sundae. Real estate agents can help you sell relatively quickly and get more value for your home than "we buy houses" companies.
Since 2018, Sundae has provided a platform for homeowners to sell their distressed properties to bidding investors — allowing them to get the highest value off-market for their home.
The company has raised $16.55 million in Series A funding and an additional $36 million in Series B funding to help expand and provide extra services to sellers, like a $10,000 cash advance before closing.
Sundae currently has 1,500 pre-qualified investors that use their marketplace to purchase rundown homes. The company says homeowners receive around ten bids on average and view the top three highest offers — which differs significantly from other cash buyer companies.
Another boon for sellers is that Sundae handles communication for both sides of the transaction process. You never have to worry about being in contact with the investor who purchases your home.
There are also no fees or contingencies, meaning you can back out anytime before a contract is signed.
Should you use Sundae?
If you’re considering selling to a cash buyer company, Sundae is one of your best options because you can get multiple bids for your house and sell on your timeline.
The company claims the average difference between the lowest and highest offers you could receive is $71,000. This shows that you can get more money for your home with Sundae than if you received a single offer from a cash buyer company.
You should consider listing your home on Sundae’s marketplace…
- If you inherit a home
- If you are facing foreclosure
- If your home is in bad condition
- If you have a sudden or unexpected life event
And while there are many benefits to listing your home on Sundae’s marketplace like ease and quickness, it comes with a cost. Investors will typically only offer you about 50% of your home’s fair market value.
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Does your home qualify for Sundae’s marketplace?
Sundae specializes in listing homes and properties on their marketplace that need updates and repairs.
You wouldn’t be required to make any changes or clean out your house if your home sold to one of their affiliated investors.
However, if your home is in pristine condition, the company may decide not to work with you because investors won’t purchase homes that they cannot flip.
Sundae currently provides services to sellers in three different states.
CA: Los Angeles, Inland Empire, San Diego, and Sacramento metro areas
FL: Clearwater, St. Petersburg, and Tampa metro areas
GA: Atlanta metro area
- Submit your information. You can begin working with Sundae by submitting details on your home online or calling a Customer Advisor at 1-800-214-4426. Their representatives will ask you about your house, what you are looking for, and explain how the process works. If Sundae can work with you, they will schedule an appointment with a local Market Expert to view your home. The visit can typically happen the same week that you submit your information.
- Book a home visit. When a Market Expert conducts a walkthrough, they will evaluate your home’s overall condition and assess what repairs are needed. They will then present you with an estimated offer range for what you could expect to earn if you listed your home on their marketplace.
The range takes into account your home’s after-repair value, a construction budget, holding costs, resale costs, and comparable sales in your area. If you find it acceptable, you sign a Marketplace Agreement allowing Sundae to conduct a home inspection and list your home on their marketplace.
- Complete a home inspection. Once you’ve signed the agreement, Sundae will schedule a third-party home inspection. The home inspector will take professional photos and examine your home as part of your Property Profile for their marketplace.
- Go live on Sundae’s marketplace. When the home inspection is over and the photos are ready, your home will go live on the company’s marketplace for investors to bid on.
- Review offers. After four business days, you will be able to view the highest offers for your home from investors. You can back out at any time during this process until you sign the actual contract with the investor.
- Close the transaction. Once you sign a contract with the investor, you’re able to receive a $10,000 cash advance from Sundae to help with any expenses. You can expect to close in as little as ten days or as long as 60 days — it ultimately depends on your timeline.
Does Sundae vet their investors?
Investors affiliated with Sundae are vetted by the company — though not as thoroughly as other cash buyer companies like We Buy Houses. This means that you can have more confidence working with their investors than a private cash buyer, but there's still some risk.
Investors who sign up to work with Sundae have to go through an onboarding process that includes filling out a form and talking with one of their specialists. They are not required to provide proof of funds or past home purchases before their account is activated.
Once a specialist approves their account, an investor can begin placing bids on available homes. If their offer is in the top three, they are required to write up a Purchase Agreement and send it to the seller to review.
If they are chosen, the investor must put down a $20,000 non-refundable monetary deposit to hold the home. They will then pay all escrow fees and costs for both sides during the closing process.
Sundae has strict rules when it comes to protecting their sellers. Any investor who attempts to reach out or drive by a property, unless permitted, will be dismissed from the platform.
Common themes from positive reviews are:
- Satisfaction with the end-to-end customer experience
- High offers and competition from investors
- Extra services were helpful
Andrew S. says that the offer he received from Sundae’s investors was more than expected.
Nadia C. appreciated Sundae’s extra services for sellers, including the cash advance.
James M. was impressed with the high level of customer service.
While we had a hard time identifying negative reviews, one seller complained about Sundae’s marketing tactics.
Karl B. said that the company kept sending him direct mailers after he had already sold his house.
How does Sundae compare to alternatives?
Cash Buyer Companies
💸Best off-market value
Fast — but not all homes qualify
Average time to offer
4 business days once on the marketplace
Average closing time
Flexible, in as little as 10 days
Flexible, in as little as 1.5 weeks
Connections to real estate investors
Free competitive market analysis
In most cases, listing with an agent is better than using Sundae because they can help you negotiate the best possible deal for your home.
Agents can typically help you get higher offers by marketing your home on the MLS — where most buyers search for homes.
While Sundae is better than other cash buyers and will present you with multiple offers from investors, they are still far below the fair market value and what you could earn from listing on the market.
Sundae’s only upside is that they can help you sell your home quickly — typically within ten days of accepting an offer. When you work with a real estate agent, homes can take between 30 to 45 days on average to close.
Looking for an agent? Clever can help! Get in touch to speak with our team of real estate experts who can help assess your situation and connect you with the best solutions for your needs.
FAQs about Sundae
Do sellers have to pay any fees?
No, sellers do not have to pay any fees. Investors cover closing costs, escrow fees, the home inspection, and the preliminary title report.
How quickly can Sundae close on my house?
The quickest that the company can help you close is ten days.