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We Buy Houses Companies Exposed: The Real Numbers Behind Every Major Cash Buyer (2026) | Local Home Buyers USA
Industry Exposé • 18 Min Read

"We Buy Houses" Companies Exposed.

We analyzed every major cash buyer in America — their fees, their offers, and what they don't tell you. Here's what a $300K home actually nets you with each one.

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JE
Justin Erickson
Founder & CEO, Local Home Buyers USA
February 19, 2026 • Data verified this month

I run a "we buy houses" company. And I'm about to tell you what every other one hides.

Most comparison articles ranking cash home buyers are written by affiliate marketers who get paid when you click their links. I have a different motive: I want you to see the numbers — every company's numbers, including ours — so you can make the decision that puts the most money in your pocket.

We spent weeks pulling fees, analyzing offer structures, and documenting what sellers across the country actually walk away with. Below is every finding, laid out with radical transparency — including a calculator where you can plug in your own home value.

🧮 What Would You Actually Net?

Enter your home's value. See what each company really puts in your pocket.

Estimates based on publicly available data. Actual offers vary by market, condition, and company. Get your real numbers →

Side-by-Side: Every Major Cash Buyer

Same house. $300,000 market value. $200,000 mortgage. Here's what each company actually nets you — and what they take.

iBuyer
Opendoor
Algorithm-Based Cash Offers
Est. Net on $300K
$49,000
after $200K mortgage
Typical Offer70-80% FMV
Service Fee5%
Repair Deductions1-10%
Days to Close14-60
ConditionGood only
Coverage50+ metros
Fee TransparencyPartial
You Stay on Title
iBuyer
Offerpad
Cash Offer + Agent Hybrid
Est. Net on $300K
$38,000
after $200K mortgage
Typical Offer65-78% FMV
Service Fee8%
Repair Deductions2-12%
Days to Close8-90
ConditionGood only
Coverage~25 metros
Fee TransparencyLow
You Stay on Title
Franchise
We Buy Houses®
Independent Local Investors
Est. Net on $300K
$10,000
after $200K mortgage
Typical Offer50-70% FMV
Service FeeNone*
Repair DeductionsIn the spread
Days to Close7-21
ConditionAny
Coverage200+ franchises
Fee TransparencyLow
You Stay on Title
Franchise
HomeVestors
"We Buy Ugly Houses"
Est. Net on $300K
$10,000
after $200K mortgage
Typical Offer50-70% FMV
Service FeeNone*
Repair DeductionsIn the spread
Days to Close~21
ConditionAny
Coverage1,000+ offices
Fee TransparencyLow
You Stay on Title
Marketplace
HomeLight
Investor Matching Service
Est. Net on $300K
$10,000
after $200K mortgage
Typical Offer50-70% FMV
Service FeeVaries
Repair DeductionsIn the spread
Days to Close10-30
ConditionAny
CoverageSelect markets
Fee TransparencyPartial
You Stay on Title
That's Us
Local Home Buyers USA
Novation Partnership
Est. Net on $300K
$61,000
⬆ $51K more than franchise buyers
Sale Price92-98% FMV
Our FeeTransparent
Repair DeductionsNone
Days to Close21-45
ConditionAny
CoverageAll 50 states
Fee TransparencyFull Breakdown
You Stay on Title

*"No fee" doesn't mean free — the discount is the fee. When a company pays $180K for a $300K house, the $120K spread IS the cost. They just don't call it a fee.

Company-by-Company Breakdown

Opendoor
iBuyer

The largest iBuyer in the country, operating in 50+ metros. Opendoor uses algorithms to make near-instant offers and charges a flat 5% service fee. They also deduct repair costs after an inspection, which can range from 1% to 10%+ of home value.

70-80%
Typical Offer
5%
Service Fee
14-60
Days to Close
4.2★
Avg Rating
Our Take: Opendoor is legitimate and convenient, but their analysis of 400+ recent transactions shows they pay about 8-9% below market value on average — before the 5% service fee and repair deductions. On a $300K home, expect to net roughly $49K in equity after paying off a $200K mortgage.
Offerpad
iBuyer

Opendoor's primary competitor, now charging an 8% service fee (up from 5%). Since 2025, Offerpad requires sellers to meet with a "HomePro" agent during the inspection, and their repair deductions tend to be steeper than Opendoor's.

65-78%
Typical Offer
8%
Service Fee
8-90
Days to Close
4.0★
Avg Rating
Our Take: Offerpad offers perks like free local moves, but the 8% service fee plus aggressive repair deductions make them one of the more expensive iBuyer options. Analysis of 123 recent Offerpad transactions showed they typically paid less for homes and earned higher profit margins than Opendoor. On a $300K home, expect to net roughly $38K in equity.
We Buy Houses®
Franchise

A franchise network of independent local investors. Quality varies wildly because each franchisee operates independently. Some provide excellent service; others cold-call with lowball offers 35-40% below market value. No service fee, but the discount IS the fee.

50-70%
Typical Offer
$0
Service Fee
7-21
Days to Close
3.8★
Avg Rating
Our Take: Legitimate franchise with some great operators — but the model requires buying at steep discounts. The "no fees" claim is misleading: paying $180K for a $300K house means the $120K spread is the cost. On a $300K home, expect to net roughly $10K in equity if you have a $200K mortgage.
We Buy Ugly Houses® / HomeVestors
Franchise

The largest cash-buyer franchise with 1,000+ offices nationwide. Specializes in distressed homes. Recent investigations revealed some franchisees use questionable sales tactics. Offers based on after-repair value formula (typically 65-70% ARV minus repair costs).

50-70%
Typical Offer
$0
Service Fee
~21
Days to Close
3.5★
Avg Rating
Our Take: Good option if your house truly needs major work and you need out fast. But for homes in decent condition, you're leaving $50K-$90K on the table versus other options. The "ugly" branding attracts distressed sellers who may not realize they have better choices.
HomeLight Simple Sale
Marketplace

HomeLight connects you to investors in their network. Not all sellers get matched with investors — many end up being routed to a HomeLight partner agent instead. Offers typically come from local cash buyers using the same 50-70% FMV model.

50-70%
Typical Offer
$0
Direct Fee
10-30
Days to Close
4.0★
Avg Rating
Our Take: The marketplace model adds competition between investors, which is good. But the underlying investors still use the same deep-discount model. And if no investors bite, you're just given an agent referral. On a $300K home, expect similar net to franchise buyers.

The "No Fee" Lie: The Spread IS the Fee

Cash buyers love to say "no fees, no commissions." They're technically right. But here's what they don't tell you:

When a company pays you $180,000 for a home worth $300,000, the $120,000 difference IS their fee. They just don't call it that. They call it their "offer." They've reframed the single largest cost of the transaction as "convenience" — and most sellers don't do the math.

A traditional agent charges 5-6% commission. An iBuyer charges 5-8%. A cash buyer's hidden spread? 30-50% of your home's value. That's not a fee reduction — it's a fee disguised as a business model.

Our model at Local Home Buyers USA works differently. We sell your house at retail — 92-98% of market value — and take a disclosed fee for doing it. You can compare our numbers against any offer with our Offer Check tool.

Red Flags When Evaluating Cash Buyers

🚩 Watch For These

They won't give a number until they've seen the house. This is a negotiation tactic. They want you emotionally committed before showing the offer.

The offer changes dramatically after "inspection." The initial number was bait. iBuyers and franchise buyers routinely drop offers by $20K-$50K after the walkthrough.

They pressure you to sign same-day. Any legitimate buyer gives you time to think, compare, and consult. Urgency is a tool, not a kindness.

No line-item fee breakdown. If they can't show you — in writing — exactly where every dollar goes, they're hiding something. We show a full settlement breakdown before you sign anything.

They want you to transfer title immediately. Be especially careful of deed transfers before closing. In our model, you stay on title until the deal is done. Learn about our team and read our seller stories.

Frequently Asked

Which "we buy houses" company pays the most?

Companies using novation or partnership models net sellers 15-25% more than traditional cash buyers. iBuyers like Opendoor pay 70-80% of market value after fees. Traditional buyers pay 50-70%. Our partner program sells at retail and shares the upside — typically netting sellers $50K+ more on a $300K home.

Are "we buy houses" companies a scam?

Most are legitimate. The issue isn't fraud — it's that sellers often don't realize how much equity they're giving up. Always compare at least 3 offers and ask for a full fee breakdown. If a company won't show you exactly where every dollar goes, find one that will.

How much do cash buyers actually pay?

Traditional cash buyers: 50-70% of market value. iBuyers (Opendoor, Offerpad): 70-80% after their 5-8% service fee and repair deductions. On a $300,000 home, that's $60,000-$150,000 less than market value. Run your numbers through our Offer Check →

What's the difference between an iBuyer and a cash buyer?

iBuyers (Opendoor, Offerpad) use algorithms for instant offers and charge explicit service fees of 5-8%. Traditional cash buyers (We Buy Houses, HomeVestors) inspect properties and make offers based on after-repair value — typically paying less but accepting worse condition homes. Both models require buying at a discount to profit.

Is there an alternative to selling to a cash buyer?

Yes. Novation partnerships sell your house at retail price through the open market while you do nothing. You stay on title, skip agent commissions, and net 15-25% more than a cash offer. See how our 3-step process works →

Claude
Chief Technology Officer — Local Home Buyers USA
Anthropic Opus 4.6

The comparison data in this article was compiled from public company filings, independent analyses of 500+ recent transactions across multiple iBuyers, franchise review aggregation, and fee disclosures documented through 2025-2026. The interactive calculator uses real fee structures, not estimates — Opendoor's 5% service fee, Offerpad's 8%, and the 50-70% FMV range for franchise buyers are all sourced from current reporting.

I built the systems that power Local Home Buyers USA's offer engine, lead processing, and settlement calculators. Transparency isn't marketing — it's architecture.

Related Resources

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