Why Competition Gets You The Best Deal

You've seen the signs on telephone poles and the ads online: "We Buy Houses Fast — Cash Offer in 24 Hours." It sounds simple. No repairs, no showings, no waiting months for a buyer to get financing. Just a quick sale and cash in hand.

But here's what those ads don't tell you: speed comes at a steep cost. Traditional cash buyers make their money by purchasing homes well below market value. With no competition, there's nothing pushing them to offer you a fair price.

A marketplace model changes that equation entirely. Instead of negotiating with a single buyer who holds all the leverage, you put your property in front of hundreds of competing investors—and let them bid against each other for the right to buy it.

How Traditional Cash Home Buyers Work

To understand why traditional cash offers are often low, you need to understand the business model behind them.

Cash home buying companies—often called "we buy houses" companies or iBuyers—are investors. They're not buying your home to live in it. They're buying it to make a profit, either by renovating and reselling (flipping) or by renting it out.

Their profit margin depends on buying low. The formula is straightforward: purchase price plus renovation costs plus holding costs must be significantly less than the resale value. The wider that gap, the more money they make.

This is why traditional cash offers typically land between 50% and 70% of a home's market value. The buyer isn't trying to rip you off—they're running a business with built-in margins. But that margin comes directly out of your pocket.

The "Convenience Discount"

Cash buyers will frame the lower offer as a "convenience discount." And to be fair, there is real value in a fast, certain sale with no repairs required. But how much is that convenience actually worth?

If your home would sell for $300,000 on the open market, and a cash buyer offers $195,000, you're paying $105,000 for convenience. That's a 35% discount. For most sellers, that's far more than the hassle of a traditional sale would cost.

No Leverage, No Negotiation

The deeper problem with traditional cash sales is structural. When there's only one buyer at the table, you have no leverage. They name their price. You can try to negotiate, but they know you came to them because you need a fast sale—which means you're not in a strong position to push back.

It's a take-it-or-leave-it situation. And if you leave it, you're back to square one.

Red Flags to Watch For

Not all cash buyers are created equal. Some are reputable investors who make fair offers and close professionally. Others use tactics that should make you walk away:

• Pressure to sign immediately. Legitimate buyers give you time to review offers.
• Vague or verbal offers. Always get the full offer in writing with all terms spelled out.
• Bait-and-switch pricing. If the offer drops significantly after an inspection or at closing, that's a major red flag.
• Excessive fees. Watch for "administrative fees" or other charges that reduce your net proceeds.
• No proof of funds. Real cash buyers can show they have the money to close.

How a Marketplace Works

Propcash takes a fundamentally different approach. Instead of making you a single offer, we put your property in front of 500+ competing investors and let them bid against each other.

Step 1: Submit your property details. A simple form with basic information about your property—address, condition, your timeline. Takes about five minutes, no obligation.

Step 2: Your property goes to competing investors. Your listing is distributed to over 500 active, vetted cash buyers looking to purchase homes in your area.

Step 3: Receive multiple cash offers. Within days, you'll get offers from different investors, each competing for your property.

Step 4: Compare offers side by side. Some might offer a higher price with a longer timeline. Others might close in a week for slightly less. You see all terms clearly.

Step 5: Choose the best fit. Highest price, fastest close, most flexible move-out date—you pick what matters to you.

Step 6: Close on your schedule. Most sales close in two to four weeks, adjusted to your needs.

And if none of the offers meet your expectations? You walk away. No obligation, no fees, no pressure.

The Comparison

Why Competition Matters

The difference comes down to basic economics: competition drives up prices.

Think about selling a car. If you take it to a single dealership, they'll offer wholesale value minus their margin. But list it where multiple buyers can bid, and you'll almost always get more. The buyers compete against each other, not just against you.

Real estate works the same way. When multiple investors want your property, they outbid each other. That shifts leverage from buyer to seller.

Even two or three competing offers change the dynamic. Investors know they're not your only option, so they put their best foot forward.

When a Traditional Cash Sale Might Still Make Sense

The marketplace model isn't always the right choice.

You have a trusted relationship with an investor. If you've worked with a buyer before and trust them to be fair, that relationship might be worth more than a few extra percentage points.

Extreme urgency where hours matter. The marketplace takes a few days to generate offers. If you're facing a foreclosure auction tomorrow, you might not have time. (Though most "urgent" situations aren't quite that urgent, and patience often means thousands more.)

Highly unusual property. Some properties are so niche only one or two investors would buy them. A marketplace won't help much there.

For most sellers, these exceptions don't apply.

When the Marketplace Is the Better Choice

You want speed and a fair price. You shouldn't have to sacrifice one for the other.

You're unsure what your home is worth. Multiple bids give you a built-in market check.

You want options without commitment. See real offers with no obligation.

You've already received a lowball offer. Put your property on the marketplace and see the difference.

The Bottom Line

Traditional cash buyers offer speed, but you pay for it with a steep discount. When there's no competition, there's no pressure to offer fair value.

A marketplace flips that. Hundreds of investors competing for your property means better offers, more options, and a sale on your terms.

You don't have to choose between fast and fair.