If you’re looking for a cash offer from a real estate investor, Sundae offers a unique marketplace where pre-vetted investors can bid on your property. Compared to other cash buyer companies, Sundae’s model creates competition that may lead to a better sale price — though cash offers will almost always be lower than offers from the open market.
Sundae is an online marketplace that connects sellers of distressed properties with investors who purchase homes for cash.
Sundae’s business model is different from other cash buyer companies. It allows multiple pre-vetted investors to compete for your property, giving you the best chance for a competitive off-market offer.
By contrast, cash buyer companies typically provide one take-it-or-leave it offer for your home.
Cash offers are almost always less than fair market value, and the same is true on Sundae. But Sundae’s model does encourage competition that may boost your sale price slightly.
While selling to Sundae may be a good option depending on your situation, it’s always best to compare all of your options, including selling with a real estate agent.
Though cash buyer companies offer convenience and speed, selling on the open market is almost always the best option for sellers who want to get the best price for their property.
For example, our friends at Clever connect you with experienced realtors in your area who can sell your home for top dollar, fast. Plus, if you sell with Clever, you’ll enjoy discounted listing fees of only 1% or $3,000.
Sundae, at a Glance
|Time to Close||As little as 10 days|
|Locations||Six metro areas across California, Florida, and Georgia|
|Eligible Homes||Homes that are distressed, in poor condition, or that need repairs and upgrades|
|Rating||4.3 stars (55+ reviews)|
What Is Sundae?
Launched in 2018, Sundae is a San Francisco-based startup that provides a platform for homeowners to sell their distressed properties to real estate investors.
Sundae’s network currently has around 1,500 pre-qualified investors that use its marketplace to place bids on rundown homes.
When you sell your home using Sundae, you don’t have to worry about communicating with investors. It’s platform solicits and collects bids from potential buyers. And if you decide to accept an offer, Sundae will continue to lead communication through the remainder of the transaction.
Finally, there are also no fees or contingencies for home sellers using Sundae, and you can back out any time.
Sundae vs. Cash Buyer Companies
|Sundae||Cash Buyer Companies|
|Sellers receive multiple bids for their home and can choose from the top three cash offers||Sellers only receive one cash offer for their home|
|Sundae only works with sellers who have distressed properties||Cash buyers will purchase homes in any condition|
|No service fees||Most cash buyer companies have no service fees, including closing costs|
|Closing can occur within 10 days, but sellers must first complete Sundae's vetting process and a four-day listing on the marketplace||Closing can occur in 7-10 days|
Compared to other cash buyer companies, Sundae’s business model is unique. It offers home sellers an opportunity to have investors compete — which could result in a slightly higher sale price.
Most cash buyer companies, such as We Buy Ugly Houses or MarketPro Homebuyers, make one cash offer on your home, typically far below fair market value. There isn’t usually room for negotiation, so you’d have to go to multiple cash buyer companies if you want to compare offers.
With Sundae, multiple investors compete for your home, allowing you to get the highest off-market price possible.
However, it’s important to note that cash buyer companies can close faster than Sundae — often in as little as 10 days.
By contrast, Sundae’s process takes somewhat longer because the company requires a walkthrough, inspection, and preliminary title report check. Once listed on Sundae’s marketplace, investors have four days to place their bids.
Who Should Consider Using Sundae?
If you need a fast cash offer (i.e you’re facing foreclosure, getting a divorce, can’t afford necessary repairs, etc.) Sundae is worth considering.
Sundae’s multiple bids may result in a higher price than you’d get from a cash buyer company, and transactions are typically faster than the open market.
However, the key tradeoff for this convenience is that investors will still typically want to pay less than your home’s fair market value.
If getting the best possible sale price is your top priority, working with a great real estate agent who knows your market may be a better option.
Sundae Pros and Cons
- Work with pre-vetted investors. You don’t have to worry about whether a random cash buyer has the funds to purchase your home — before an investor joins the marketplace, Sundae vets their credentials.
- Receive multiple offers. Sundae’s marketplace allows multiple investors to bid on your property. According to Sundae, the average seller receives around 10 bids, with a price range averaging around $71,000 between the lowest and highest offers.
- Skip repairs. Since Sundae’s marketplace is built for investors who are prepared to buy homes in as is condition, you don’t have to worry about making any changes to your home or cleaning it out.
- Get a cash advance. Sundae provides a $10,000 cash advance to sellers to help with any expenses before or during closing.
- Offers may be less than fair market value. The offers you receive through Sundae will likely be less than the fair market value of your home (which is typical across most cash buyer companies).
- Eligible locations are limited. You can only use Sundae’s services in several California cities, as well as the Tampa and Atlanta metro areas.
Sundae mainly operates in California — specifically in Los Angeles, Orange, San Bernardino, Riverside, and San Diego counties, as well as the Sacramento metropolitan area.
The company is continuing to expand into new locations, most recently the Tampa, FL, and Atlanta, GA, metro areas.
Not available near you? Our friends at Clever can help! Their nationwide network of top rated agents can help you find the right buyer and save thousands on commission, thanks to pre-negotiated low rates.
How Does Sundae Work?
Step One: Submit Your Information
To get started with Sundae, home sellers will first provide information about their home online or by speaking to a Customer Advisor (1-800-214-4426).
A Sundae representative will tell you how the process works, learn more about your property, and ask about your goals for selling.
If the service is a good match, Sundae will schedule an appointment for a local Market Expert to view your home, typically within one week of submitting your information.
Step Two: Book a Home Visit
When Sundae’s Market Expert visits your home, they’ll evaluate its overall condition and note any necessary repairs.
Based on this evaluation, you’ll receive an estimated range of prices you may receive from Sundae’s investor marketplace. The range considers factors including your home’s after-repair value, estimated construction budget, holding and resale costs, and comparable sales in your area.
If the offer range is acceptable, you’ll schedule a home inspection and sign an agreement allowing Sundae to list your home on its marketplace.
Step Three: Complete a Home Inspection
Before listing your home on the marketplace, Sundae will schedule a third-party home inspection. Along with conducting an inspection, the home inspector will take professional photos of your home that will be used for your Property Profile on Sundae’s marketplace.
Step Four: Go Live on Sundae’s Marketplace
Once the home inspection, preliminary title reports, and photos are prepared, your home will go live on Sundae’s marketplace. Investors will have a limited window of four days to place their bids.
Step Five: Review Cash Offers
After your home has been listed on Sundae’s marketplace for four business days, you’ll receive the highest bids from investors.
There’s no obligation to accept one of these bids — in fact, Sundae allows home sellers to back out any time during this process until you sign the actual purchase agreement with the investor.
Step Six: Close the Transaction
Once you sign a purchase agreement with the investor, you’ll be eligible to receive a $10,000 cash advance from Sundae to help with any expenses that come up before or during closing.
Depending on your timeline, you can request a closing date within as little as 10 days, or up to 60 days.
Does Sundae Vet Its Investors?
Before real estate investors can place bids on Sundae’s marketplace, the company vets their credentials — though the process is not as thorough as the vetting required by other major other cash buyer companies.
The vetting process allows Sundae’s investors to inspire more confidence than home sellers might feel while working with a private cash buyer. Investors who sign up to work with Sundae are also required to complete an onboarding process.
However, unlike some cash buyer companies Sundae does not require investors to provide proof of funds or past purchases before their account is activated.
Once an investor’s account is activated, they can place bids on available homes. If an investor’s offer is in the top three bids on a property, they are required to write up a Purchase Agreement and send it to the seller for review.
Finally, Sundae’s investors must abide by the company’s rules and processes. Any investor who attempts to reach out to a seller or drive by their property without permission will be dismissed from the platform.
Overall, Sundae’s online reviews skew generally positive.
Sundae is accredited by the Better Business Bureau and currently has an “A” rating, as well as 4.64/5 stars according to more than 10 customer reviews.
Thomas K. says Sundae’s offers were more competitive than offers he received from other cash buyer companies.
Jon D. appreciated Sundae’s speed, lack of fees, and competitive offer as he navigated the sale of an inherited home.
Miles B. says Sundae provided excellent customer service and transparency through the entire process.
C.B. was frustrated by Sundae’s marketing tactics.
Listing With Sundae vs. Selling With an Agent
In general, listing your home on the open market will lead to the highest possible offer — sometimes above fair market value, if your property is in a seller’s market.
If you have time to list your home on the open market, or if your home is in decent condition, it’s usually the best course of action.
However, if your property is in very poor condition or would otherwise be difficult to sell on the open market, Sundae may offer some compelling benefits to homeowners who live within its limited service areas.
With Sundae, you’ll be able to avoid making repairs, receive an offer with no contingencies, and close on your timeline.
Before you decide how to sell one of your biggest assets, it’s always worth exploring every option. Our friends at Clever can introduce you to qualified real estate agents in your area! Best of all, sellers who list with Clever pay just $3,000 or 1% in listing fees — helping you save thousands AND ensuring you’ll get the best possible deal.
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