Which is better? Orchard vs. traditional real estate

Nowadays, homebuyers and sellers have a multitude of options when it comes to buying and selling their homes. They can use an iBuyer service, a discount brokerage, a real estate tech company, or choose to go with a traditional real estate agent.

For those looking to branch out from the status quo, Orchard is a power buyer company that specializes in helping homeowners buy their house and sell at the same time. Orchard is headquartered in New York City and operates in select markets across the country, offering services with a considerable advantage to traditional real estate, and at comparable prices.

How does Orchard work?

Orchard helps you unlock the equity in your current home to purchase your next one — without any contingencies. Unlike other real estate tech companies, working with Orchard is a hybrid experience that uses many digital tools to help streamline the process, all with the benefit of a real life advocate in the form of a local and experienced real estate agent. Here’s a closer look at the process.

Orchard customers start by answering questions about their homes and their finances to receive a Guaranteed Offer. Then an experienced local agent helps you house-hunt, and only after you’ve moved in will we prep the old house for sale.

If the home doesn’t sell in 120 days, Orchard will buy it at the guaranteed offer amount.

→ Learn more about how Orchard works

Orchard vs. traditional real estate agents: What’s the difference?

At Orchard, homebuyers and sellers still benefit from the representation of an experienced local real estate agent, who lists their home on the open market Here are some ways that Orchard differs:

• Orchard leverages digital tools: One of the biggest differences between Orchard and traditional real estate is that Orchard uses digital tools and an integrated mortgage and title arm to help streamline the homebuying and selling process.
• Orchard helps you move first (and skip the showings): Move First is Orchard’s answer to the decades old question of how homeowners buy and sell a house at the same time. This service helps line up closing so that homeowners don’t have to worry about paying temporary housing fees or shouldering two mortgages at once.‍
• Orchard guarantees your home sale: List with Orchard lets sellers list their house on the open market to make top dollar, as well as a guaranteed offer to fall back on if the home sale takes longer to sell than wanted. Orchard’s Concierge service can help make repairs so homeowners can sell faster and for more money.

Curious how much you could make selling your house? Use our Home Sale Calculator to find out:

Pros and cons of Orchard vs traditional real estate

Orchard’s services offer a streamlined homebuying and selling process, but it may not be the right real estate partner for everyone. Orchard works best for homeowners who have equity built up in their current home who are trying to buy and sell at the same time.

It’s also a great option for sellers who are in competitive markets who want to take advantage of Orchard’s listing prep and option to skip the showings.

Here’s a breakdown of the advantages and disadvantages of Orchard and traditional real estate:

Comparable fees

Different services carry different costs, but overall, Orchard has comparable fees to working with a traditional agent.

Homeowners who buy and sell with Orchard typically pay a brokerage fee between 5% and 6% of the home sale price. If you’re just selling you can expect to pay a brokerage fee between 5.5% and 6% of your home sale price, only slightly higher than what a traditional agent changes (5% to 6%). There may also be minimums if your house sells for less than a certain amount and other program charges.

‍Learn more by getting started here.

If the cost of working with a property tech company has been holding you back from taking advantage of a streamlined home sale and purchase, Orchard may be the right choice for you. Orchard offers more value than a traditional agent at a similar cost, and is significantly cheaper than competitors, like Knock, which charges between 8% and 16% of the sale price of a home.

Is Orchard legit?

Yes, Orchard is a legitimate online real estate tech company that has been in operation since 2017. Originally, it was known as Perch, but changed its name to Orchard in 2020. For further proof that Orchard is a legitimate business, look to the nearly 500 customer reviews available on the third-party review platforms Better Business Bureau and Trustpilot. 

Where can you find Orchard reviews?

Reviews offer insight into the experience of real customers and can provide further evidence of what it's really like to work with a company. At the time of writing this article, the following platforms had the most robust reviews of Orchard:

• Better Business Bureau: Orchard is a Better Business Bureau accredited business with an A rating.
• Trustpilot: Orchard has a 4.4 star rating on Trustpilot with over 460 customer reviews. Positive reviews cite the convenient and fast closing process, as well as the transparent and professional nature of the company.

→ Read Orchard reviews here

Is Orchard right for me?

If you’re looking for a simpler way to buy and sell your home at the same time, or if you’re competing in a tight market, Orchard is a solid option. You’ll pay similar fees to working with a traditional agent, but get more value for your money. For example, Orchard helps you avoid having to pay temporary housing fees or shouldering two mortgages at once, while offering free listing prep and home maintenance and repairs at no upfront cost to you.

Those looking for a cheaper alternative to traditional real estate will have to broaden their search. A discount brokerage like Redfin may be better able to serve these needs, but buyers and sellers will have to be comfortable with Redfin’s hands-off approach and less personalized service. 

For those who are simply looking to sell fast, one of the many companies that buy houses for cash may be a good option. However, you’ll likely sell for less than market value.

Interested in learning more about Orchard? Get started with a free home valuation — our estimates are 25% more accurate.