✍️ Editor's take: Sundae is a marketplace that pairs home sellers of distressed properties with investors. Sundae real estate reviews note that its business model gives you the best chance for a high off-market offer, compared to other cash buyer companies.
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 pre-vetted investors to compete for your property by submitting bids, with the goal of giving you multiple offers to choose from. Overall, Sundae real estate reviews are more positive than other cash buyer companies, with sellers praising its customer service and unique business model.
Still, Sundae homebuyers are generally looking for good deals — meaning that even the highest bids may be less than what you could earn on the open market. If you need to sell fast or your property is dilapidated, it’s always worth comparing all of your options.
Clever can connect you with full-service agents who know how quickly homes are selling in your market and how to get the best price possible on your sale. Best of all, if you list with Clever you'll pay just $3,000 or 1% in listing fees!
What is Sundae real estate?
Sundae, at a glance
👨 Average customer rating
4.7 out of 5 across 337 reviews
🗓 Closing time
As little as ten days
💰 Service fee
🤵 Related 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 Sundae fees or contingencies, meaning you can back out anytime before a contract is signed.
Pros and cons of selling with Sundae
Should you use Sundae real estate?
If you’re considering selling with 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.
Most sellers come to Sundae when dealing with:
- An inherited home
- Impending foreclosure
- A home that's in poor condition
- A sudden or unexpected life event
However, Sundae's convenience can come at a cost, which makes it a poor choice for the majority of sellers. It's common for cash buyers to offer just 50-70% of a home’s fair market value. In other words, listing your home on the open market could potentially double your proceeds!
Clever can connect you with top-rated real estate agents who know how to position hard-to-sell homes in your local market. You can interview as many agents as you like until you find someone with the right strategy for your goals and timeline.
Best of all, sellers who list with Clever pay just $3,000 or 1% in listing fees — helping you save thousands!
Does your home qualify for Sundae’s marketplace?
Sundae currently works with sellers in 22 cities, including major cities like Los Angeles, Atlanta, and Seattle.
If you live nearby or in the same county as these metro areas, Sundae may also be able to work with you.
Next, you'll have to meet Sundae's qualifications. Sundae specializes in listing homes and properties on their marketplace that need updates and repairs.
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. In that case, we recommend listing your home on the open market to make sure you get the best possible deal.
Clever can introduce you to top rated real estate agents in your area. We pre-negotiate low listing fees of just $3,000 or 1% — helping you save thousands while getting great service from a leading brokerage!
How Sundae real estate works
If you're interested in receiving an offer from Sundae real estate's homebuyers, the process is simple:
- Submit your information. Start by submitting basic information about your property online or by phone to see if your property is eligible.
- Book a home visit. If your property qualifies, Sundae will schedule a walkthrough with one of its local Market Experts, who can provide an estimate of how much Sundae homebuyers might offer for your home. If you decide to move forward, you'll sign a Marketplace Agreement.
- Complete a home inspection. Sundae works with third-party home inspectors who will examine your home and take professional photos that are used in your Property Profile on the marketplace.
- Go live on Sundae’s marketplace. Once your home is posted on Sundae's marketplace, investors can begin to place their bids.
- Review offers. After four business days, you can review the highest offers from investors. You can still back out without penalty, as long as you do so before signing a purchase agreement with the investor.
- Close the deal. Once you sign a contract with the investor, you can 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, depending on your timeline.
Does Sundae vet its investors?
Yes — investors affiliated with Sundae are pre-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.
Sundae real estate reviews
Sundae reviews from customers are mostly positive, with the Better Business Bureau giving the company 4.58/5 stars and Yelp averaging 4/5 stars.
Better Business Bureau reviews
Sundae real estate reviews note the company's friendly customer service, relatively high offers from investors, and helpful extra services like its cash advance.
Andrew S. says that the offer he accepted from Sundae’s homebuyers 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, Sundae real estate complaints include feedback about the company's marketing tactics.
For example, 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 offers, wider coverage
Avg. time to offer
Avg. closing time
Compared to other cash buyer companies, Sundae real estate moves fast and is more likely to result in a competitive price for your home.
However, it's still very unlikely that you'll receive more than 70% of your home's fair market value when selling to any cash buyer. Listing your home can add several weeks to your timeline — but it can also result in a higher sale price that prevents you from leaving potentially thousands of dollars on the table.
You'll also miss out on the chance to have a seasoned professional negotiate on your behalf, which means you may be pressured to accept terms that benefit the investor rather than your interests.
Selling with Sundae vs. selling with a real estate agent
In most cases, listing with an agent will help you secure the most competitive deal possible for your home sale.
Sundae’s main upside is that they can help you sell your home almost instantly — typically within ten days of accepting an offer. If your buyer is using traditional financing, closing takes between 30 to 45 days on average.
However, you'll only receive bids from Sundae's investors, who typically pay as little as 50-70% of your home's fair market value.
By contrast, a real estate agent can help you get higher offers by marketing your home on the MLS — where the vast majority of buyers search for homes.
Clever can introduce you to top rated real estate agents who can help you sell on your timeline for the best possible price. You'll get expert advice and full service support, while our pre-negotiated rates keep commission fees low. On average, sellers save over $9,000 on commission!
Housing Wire. "Sundae raises $16.55 million for distressed real estate marketplace." Accessed July 30, 2021. Updated June 30, 2020.
Better Business Bureau. "Sundae, Inc.." Accessed July 30, 2021.
Yelp. "Sundae." Accessed July 30, 2021.
Zillow. "What Is the Average Time to Sell a House?." Accessed July 30, 2021.