A company offered to buy our house instantly. Is it real money?
Answered by Chris Deutsch, Founder & Editor
Licensed Minnesota Realtor #20382264 ·
The short answer
It's real money — priced for their convenience, not your equity. The instant-offer model works one way: start with an algorithm's number that looks respectable. Subtract a service fee that usually runs past typical agent compensation. Subtract a repair credit assessed after you're committed. Subtract their built-in resale margin too. Each line is defensible alone. Stacked, they usually land well below open-market on a normal house.
On stage The 60-second answer
Captions on · Transcript below
The stage is set.
Chris's video answer is on its way. Until then, the short answer above says the same thing.
The transcript posts with the video.
The longer answer
When it's genuinely the right call: you need certainty more than dollars. An estate to settle from out of state, a privacy situation, a closing date that can't move, a house you can't face showing. Certainty has a price, and sometimes it's worth paying — that's a real decision, not a scam.
How to decide like a pro: get their offer in writing. Then get a real net sheet for the open market — same house, same honesty about timeline. Compare walk-away to walk-away. I'll build the second number even if you take the first. The comparison costs nothing; skipping it can cost plenty.
The next department over
What people in this spot usually ask next.
- Pricing & equityHow much money do we actually walk away with when we sell?Read the answer
- Pricing & equityListings near us keep cutting their prices. What does that mean for ours?Read the answer
- Pricing & equityWhy is the Zillow number different from what my agent says my house is worth?Read the answer
- Timing & seasonalityWe want to move next summer. When do we actually need to start?Read the answer
- Timing & seasonalityShould we wait for rates to drop before we sell and move up?Read the answer
- Pricing & equityWhy not price high? We can always come down.Read the answer
From the editor's desk
“As Founder and Editor, I review, correct, and stand behind every answer.”
Is your situation more specific than the market? That's the one worth talking through.