Orchard Real Estate (aka Perch): Reviews & FAQs

Orchard Real Estate (Formerly Perch) Reviews & FAQs

Buying a home can be complicated — especially if you have to sell another property first. Orchard is one of many companies that aims to streamline the process.

Orchard was previously known as Perch Real Estate, but has since rebranded while still offering the same key services. Its most popular offering is the Move First program, which allows you to buy a new home before your current home sells. But it also offers other programs for home buyers and sellers.

However, Orchard’s services are available only in a limited geographic area and there are fees to pay for using it so you’ll need to carefully consider whether working with Orchard is right for you. This guide can help you decide.

What is Orchard?

Orchard was started as a digital platform which aimed to streamline the process of selling a home and buying another.

Its Move First program makes it easy for home sellers in select markets to purchase a new home before selling their existing property. However, the site also offers another program called List with Orchard, which is for home sellers who aren’t buying another property in a market that Orchard works in.

Here’s what you need to know about each of these Orchard services.

Move First

Move First is restricted to Texas, Colorado, and Georgia homes in just a few markets.

Furthermore your property must be a single-family home built between 1950 and 2017 and fall within an eligible price range. These are the markets and valuations that apply in order for your home to be eligible:

Atlanta, GA homes priced between $150,000 and $600,000
Austin, TX homes priced between $150,000 and $700,000
Dallas-Forth Worth, TX homes priced between $150,000 and $600,000
Denver-Colorado Springs, CO homes priced between $200,000 and $800,000
San Antonio, TX homes priced between $150,000 and $400,000

The Move First Process

If you qualify for the Move First program, here’s how the process works:

Orchard pairs you with a “home advisor” who helps you find a new home to purchase. You can buy any home, not just those sold by Orchard.
When you find your new home, you can make a non-contingent offer. That means your offer isn’t conditioned on selling your old home first — which makes your offer more attractive to home sellers, and therefore more likely to be accepted.
If you live in Texas, you can also opt to use “Offer Boost,” which allows you to make an all-cash offer. You’ll get pre-qualified with a partner at Orchard Home Loans and Orchard will then make an all-cash offer on your behalf, which makes you an even more competitive buyer. After your old house sells, Orchard finalizes your new mortgage loan and your new home is transferred to you.
You’ll move into your new home, but will not pay a mortgage on it until you’ve sold your old house. If you use Offer Boost, you’ll pay Orchard rent until your old house sells; otherwise, you’ll keep paying on your old loan until the home sells. You’ll know the amount of rent you’ll owe up front and the rent payments will be deducted from the proceeds of your home sale.
Orchard will prepare your home for sale and list the property. Your home will be sold on the open market and your Home Advisor will help you to price it as well as marketing it on your behalf. According to Orchard, 95% of homes sell to a buyer on the open market.
If your home hasn’t sold after 120 days, Orchard will purchase it from you for a predetermined price. Orchard’s offer is an all-cash offer, so you’ll receive the money minus any rent and closing costs you owe. Closing costs include things such as transfer taxes, title insurance, and Orchard’s fees, and typically add up to 1% of the sale price not including the fee you pay Orchard.

Move First Fees

If you use Move First, you will pay Orchard a fee equal to 6% of the value of the sale price of your home. Orchard indicates this fee is the same as a commission you would pay in a traditional home sale. However, while it is true that the standard commission to list your home is 6%, split between the buyer’s and seller’s agents, many home sellers no longer pay the full standard commission.

In fact, Real Estate Witch has partnered with Clever to help you find a full-service agent for a flat fee of $3,000 or 1% if your home sells for above $350,000. Visit Clever today to find out more about how this service works and how it can help you save compared to Orchard.

List with Orchard

List with Orchard helps homeowners sell properties in select markets. Your home must be a single-family home, it can’t currently be listed, and it must have been built between 1950 and 2017 to be eligible. It also must be located in certain geographic areas and fall within a certain price range. These include:

Atlanta, GA homes priced between $150,000 and $600,000
Austin, TX homes priced between $150,000 and $700,000
Dallas-Forth Worth, TX homes priced between $150,000 and $600,000
Denver-Colorado Springs, CO homes priced between $200,000 and $800,000
San Antonio, TX homes priced between $150,000 and $400,000

If you meet the criteria, Orchard will list your property for 120 days and help you try to sell it on the open market. They’ll charge a 6% commission to do so, which is standard within the real estate industry.

However, there’s one big difference when you use List with Orchard: Orchard is also an iBuyer.

When you list with them, they’ll make you an all-cash offer up front. If your property doesn’t sell on the open market within the 120 listing period, they’ll buy your home for the predetermined price minus a 1% convenience fee.

While Orchard indicates that 95% of the homes they list sell within 120 days, it’s possible yours won’t be one of them. If your home doesn’t sell, you’d be faced with the convenience fee — and typically, iBuyers such as Orchard also offer you less than the market value of your home because their goal is to make a profit by reselling your property.

Unfortunately, that means you could pay thousands of dollars in fees, as well as getting less money for your home than if you’d sold it on the open market. And that’s on top of the 6% commission. If you sell a home priced at the top price range of $800,000, the commission alone would add up to $48,000 and then you’d pay around $8,000 in closing costs and another $8,000 convenience fee on top of that if you sold to Orchard after the 120 listing period expired. That’s $64,000 total.

Pros and Cons of Using Orchard

Here are some key benefits and disadvantages of using Orchard.

Pros of Using Orchard

You can streamline the process of buying and selling a home. You won’t have to worry about paying two mortgages or living in your home while you try to sell it.
You can make a more competitive offer. It should be much easier for you to buy a new house, as many sellers in competitive markets won’t accept contingent offers and prefer all cash offers to those where the buyer must secure financing.
Orchard will purchase your home if it doesn’t sell on the market. You’ll have the certainty of knowing up front that your home will definitely sell at a predetermined price.

Cons of Using Orchard

Here are some of the biggest downsides of Orchard:

The costs can be quite high. You’ll have to pay a 6% fee and won’t have the opportunity to reduce it by finding a discount realtor willing to accept less than the standard commission. You could also end up owing Orchard an extra 1% if they purchase your home because it doesn’t sell on the open market
The service is only available in limited areas. Unless you live in eligible areas in Atlanta, Colorado, or Texas, you can’t make use of Orchard.
iBuyers pay less than market value for your home. If you end up selling to Orchard at the end of 120 days, you may get less for your home than if you found a buyer on the open market. That’s because iBuyers purchase properties with the goal of making a profit, and often do so by purchasing homes below market value.

If the downside of Orchard isn’t worth the potential upside (or if you don’t live in Atlanta, Colorado, or Texas), we have another option: Clever Real Estate offers top-rated, full-service agents for $3000 or a 1% listing fee. You can find and interview top-rated agents here.

Orchard Reviews

To understand if Orchard is right for you, it’s a good idea to look at what past clients have said about their experience with the company. This means reading not only reviews of Orchard realty but also Perch reviews (since the company used to be called Perch Real Estate).

Some people have definitely had good experiences with Orchard. In fact, the real estate service received 4.6 stars out of 5 on TrustPilot, with 107 different reviews.

Many buyers touted the smooth process of selling their home, and the peace-of-mind that comes with knowing that they have a guaranteed offer from Orchard.

Some have described the process as seamless and have commended the skill of the agents Orchard paired them with.

And others indicated Orchard was flexible when financing problems arose, making it possible for them to stay in their old home a little longer until they were able to close on their new property.

Unfortunately, not everyone had a good experience with Orchard. In fact, several Perch reviews indicated that the company lowered the price they had offered substantially after inspections – in some cases indicating they had made a mistake with the prior valuation.

Some buyers have also had problems with Orchard, including a lack of communication, a failure to disclose serious issues with the property, and a lack of knowledge about key features of properties they had listed for sale.

Alternatives to Using Orchard

Orchard is not the only option available if you’re hoping to sell your home efficiently. In fact, there are other iBuyer programs, as well as other services that help you to find a skilled agent to list and market your property for you. Here’s how Orchard compares to some of these other offerings.

Orchard vs. Opendoor

Opendoor is an iBuyer that will purchase your property for a predetermined price for cash. It also offers a List with Opendoor service that allows you to pay only 5% commission instead of 6% commission. You may also be eligible to receive a $10,000 interest-free advance on your home sale to do renovations and repairs in order to attract more buyers.

However, unlike Orchard, Opendoor doesn’t do anything to facilitate the purchase of a new home. If you are simply looking for an iBuyer or a listing service, Opendoor can help. But if you want assistance purchasing a new home or making an all-cash offer on the home you’re buying, you’ll have to opt for Orchard instead.

Orchard vs. Clever

Clever isn’t an iBuyer, but it can help you to both buy and sell a new home – and for far less cost than you’d pay Orchard.

Clever matches you with full-service agents who can list and market your home — but who will charge less than the standard 6% commission for doing so. In fact, when you list your home with a Clever partner agent, you’ll pay $3,000 or 1% of the home’s price for properties valued above $350,000 (plus commission to a buyer’s agent).

Clever can also pair you with a buyer’s agent who will help you find your perfect new home – and who will provide you with a home buyer’s rebate in areas of the U.S. where that’s allowed. That means you’ll actually get money back from your agent when you close on your home.

If you’re looking for a company that will purchase your home if it doesn’t sell on the open market, Orchard is a better choice. But if you want to sell your home for top dollar and pay the most affordable commission or you want to buy a home and get money back when you do it, Clever is the best choice. You can contact Clever today to learn more.

Orchard vs. Traditional Agents

Traditional agents also don’t offer an iBuyer service so there’s no guarantee they’ll sell your home. And while a buyer’s agent will represent you in the home purchase process, they can’t help you make an all-cash offer. If you want those types of services, Orchard is the right choice.

However, traditional agents will list and market your home for you, negotiate on your behalf with buyers, and facilitate the purchase process. Buyer’s agents can also help you to find a home to purchase, negotiate the price, and close the deal.

However, if you are a seller who works with a traditional agent, you’ll have to pay a 6% commission that is split between the seller’s and buyer’s agents. And if you’re a buyer who works with a traditional agent, you won’t receive a home buyer’s rebate.

If you are considering working with a traditional realtor, you should look into commission-saving options first to keep more money in your pocket.