If you're thinking about selling your home in Los Angeles or Orange County and have started researching cash buyers, you've already discovered the problem. There are a lot of them. iBuyers, direct buyers, wholesalers, franchise operators, local independents — the market is crowded and every company sounds the same on the surface.
Los Angeles has one of the highest concentrations of cash buyers and iBuyers in the country. That's good news in one sense — you have options. But it also means the burden of vetting falls on you, and the differences between companies matter more here than in most markets.
This post explains the different types of buyers operating in the LA and Orange County market, what iBuyers actually charge, and the questions every seller should ask before signing anything.
Note: This post is for general informational purposes. It may be worth consulting a California real estate attorney before signing any purchase contract.
Why Los Angeles Has More Cash Buyers Than Almost Anywhere — and Why That Makes Choosing Harder
The LA market attracts cash buyers for a simple reason. High home values mean high returns on renovation and resale. A home that needs work in Pasadena, Long Beach, or Hawthorne represents a meaningful opportunity for the right buyer — and there are many buyers competing for that opportunity.
The result is a market where sellers receive unsolicited offers regularly — postcards, door knockers, signs on telephone poles, cold texts. Most of these come from operators who have identified your property as a target, not from companies that have seen the home or done the work to make a responsible offer.
The volume of outreach creates two problems for sellers. First, it's hard to know who is legitimate and who isn't. Second, even among legitimate buyers, the business models are very different — and the differences have real financial consequences for the seller.
As of mid-2026, the Los Angeles County market shows a median listing price of $998,500 with homes sitting on the market for a median of 51 days and 19% of listings experiencing price cuts. In Orange County, the median listing price is $1,372,500 with 46 days on market and 26% of listings with price cuts. In that market, who you sell to and how you sell matters.
Three Types of Cash Buyers in the LA Market — and Why They're Not All the Same
Not every company that advertises "cash for your home" operates the same way. Understanding the three primary models helps you ask better questions and evaluate what you're actually being offered.
Direct cash buyers purchase your home outright with their own funds and close with their own capital. They are the actual buyer — not a middleman. The offer you receive is the offer that closes — no assignment, no third-party investors. How they arrive at that offer varies. Some conduct an in-person walkthrough first; others generate offers algorithmically or remotely.
iBuyers use technology to generate instant or near-instant offers, typically without seeing the home in person first. Opendoor is one of the most well-known iBuyers operating in Southern California. They operate at scale across many markets and generally require the home to meet certain condition and price criteria. The appeal is speed and convenience — but iBuyer offers often come with service fees, and the final offer after inspection is often lower than the preliminary number. We cover iBuyer fees in detail in the next section.
Wholesalers put your home under contract and then sell that contract to a third-party investor, keeping the difference as profit. They are not the buyer — they are a middleman. If they can't find a buyer for the contract, the deal can fall through, sometimes at the last minute. For a full explanation of how wholesaling works and what to watch for, see our post on selling to a real estate investor.
THE MOST IMPORTANT QUESTION TO ASK
"Are you the actual buyer, or will this contract be assigned to someone else?" A direct buyer answers immediately and clearly. Hesitation or a vague answer tells you what you need to know.
What iBuyers Actually Charge — and What Sellers Often Don't Find Out Until Closing
iBuyers have become a significant presence in the Southern California market, and their marketing is sophisticated. But the actual cost of selling through an iBuyer is often higher than sellers realize when they first receive an offer.
Here's how iBuyer pricing typically works:
- Preliminary offer vs. final offer. The number you see first is not the number you close at. iBuyers conduct a remote or in-person assessment after you accept their preliminary offer, and the final offer reflects their findings. Sellers who were expecting one number frequently receive a lower one.
- Service fees. iBuyers charge a service fee in place of a traditional agent commission. According to NerdWallet, iBuyer service fees typically range from 5% to 8% of the total offer value. Repair costs are deducted separately on top of that fee — worth asking about upfront before you go further into any iBuyer process.
- Repair deductions. After the assessment, iBuyers deduct estimated repair costs from the offer price. The seller can accept the deductions, contest them, or walk away. In practice, sellers who have already mentally committed to the sale often accept deductions they weren't expecting.
- Closing costs. Some iBuyers pass standard closing costs to the seller in addition to the service fee. The specifics vary by company and transaction.
The net result is that an iBuyer offer that looks attractive upfront can look quite different by closing. Our free Home Sale Calculator can help you model what different sale paths actually net after all fees, deductions, and costs are factored in.
For a full comparison of the major buyer types operating in the Southern California market, see our cash buyer comparison.
Seller's Advantage is another well-known name in the Southern California market. As with any buyer, it's worth asking the questions below before signing — specifically whether the offer price is final, whether the contract includes an assignment clause, and what fees or deductions come out of your proceeds at closing.
Six Questions to Ask Any Cash Buyer Before You Sign
Whether you're evaluating a direct buyer, an iBuyer, or anyone in between, these six questions will tell you most of what you need to know before committing.
- Are you the actual buyer, or will this contract be assigned? If they're a wholesaler, the answer will be evasive. A direct buyer answers directly.
- Can you provide proof of funds within 24 hours? Legitimate cash buyers have funds ready before they make an offer. Delay or refusal is a red flag.
- Is the purchase price in this contract the exact amount I'll receive at closing — with no deductions? Get this confirmed in writing. Some contracts allow price adjustments after signing based on inspection findings or due diligence periods.
- What are your service fees or commissions? A true direct buyer charges none. Know exactly what comes out of your proceeds before you sign.
- How long have you been buying homes in Los Angeles? Local market knowledge matters — especially for older homes, probate situations, or properties with title complexities common in LA County.
- Can I have an attorney review the contract before I sign? The answer should always be yes. Any buyer who resists is not a buyer you want.
For a plain-English breakdown of what's actually in a cash purchase contract — earnest money, closing timelines, cancellation terms, and what sellers pay — see our cash offer contracts explained page.
Steve sold his father's LA home — where the family had lived for over 40 years — in 30 days, no repairs, no showings.
The Southern California market has shifted meaningfully from its peak. In Los Angeles County, active inventory has grown and days on market have increased year over year. Nearly 18% of listings are experiencing price cuts — a signal that sellers who overprice relative to current conditions are being pushed to adjust.
In Orange County, conditions are similar. With 26% of listings seeing price cuts and homes sitting for a median of 46 days, the assumption that a home will sell quickly at asking price is less reliable than it was two or three years ago.
For sellers whose homes need work — deferred maintenance, outdated systems, cosmetic issues — the calculus has shifted. A home that needs significant updating is now competing in a market where buyers have more choices and less urgency. The gap between what a renovated home sells for and what an as-is home achieves on the open market has widened.
This is the environment where a direct cash sale makes the most mathematical sense — not because it always yields the highest gross price, but because it eliminates the risk of a long market time, price reductions, and carrying costs that erode net proceeds on a home that wasn't ready to compete.
Why Wedgewood Homes Has Been the Choice for LA and Orange County Sellers Since 1985
Wedgewood Homes has been buying homes directly from homeowners in Los Angeles County for more than 40 years. We know these neighborhoods: Pasadena, Long Beach, Torrance, Inglewood, Carson, Downey, Cerritos, Whittier, Glendale, Burbank, Culver City, and communities throughout the county. In Orange County, we buy in Anaheim, Irvine, Huntington Beach, Fullerton, Garden Grove, Santa Ana, Buena Park, Tustin, Fountain Valley, Mission Viejo, and surrounding cities.
Here's what working with Wedgewood Homes typically looks like in practice:
- We visit the property before making an offer. The price in our contract reflects what we've seen and is the price you receive at closing, with no post-signing adjustments for direct to homeowner purchases.
- We are the actual buyer. Our contracts for direct to homeowner purchases include no assignment clauses.
- We pay all title and escrow fees. Sellers pay no closing costs.
- We buy as-is. No repairs, no cleaning, no staging required.
- You choose the closing date. You can close in as few as 3 business days, with flexible timelines typically up to 60 days depending on your situation.
- You work with a dedicated team from your first call through closing.
- Sellers are welcome to have an attorney review our offer before signing.
- We have a long-standing BBB A+ rating and a verifiable track record going back four decades in this market.
Request a no-obligation cash offer. There's no deadline and no pressure. Use our Home Sale Calculator to compare what different paths net you before you decide. Schedule a call with a local market specialist to talk through your situation first.
Wedgewood Homes buys homes directly from sellers with no repairs required, no agent commissions, and no fees. In Southern California we serve Los Angeles County, Orange County, the Inland Empire, and San Diego. We also serve sellers throughout the Bay Area, Sacramento, the Central Coast, the Central Valley, Las Vegas, Reno, Dallas, Salt Lake City, Denver, and Colorado Springs. View all Wedgewood Homes locations.
