Short answer: a legitimate cash home buyer will show you proof of funds, put the offer in writing, close through a licensed title or escrow company, and never ask you for money upfront. Most problems come from buyers who can't do one of those four things. Here's how to check any "we buy houses" company before you sign.
7 Red Flags to Watch For
- They ask you for money. Application fees, "processing" fees or "appraisal" fees paid to the buyer. A real buyer pays you, not the other way around.
- No proof of funds. If they won't show a bank statement or lender letter covering the price, they may not be the real buyer.
- No title company. Anyone who wants you to sign the deed over directly, or before you're paid, is a serious warning sign.
- High pressure. "This offer expires tonight" or pushing you to sign before you've read the contract.
- A long inspection period plus an assignment clause. This lets the "buyer" tie up your house for weeks while they look for someone else to buy it, then back out if they can't.
- The price drops at the last minute. A high offer that shrinks after the walkthrough for problems that were obvious from the start.
- No real business behind the name. No physical address, no reviews, no registered company.
How to Check a Cash Buyer in 10 Minutes
- Look up their Google Business Profile: a real address, real reviews and how long they've been around.
- Check the state business registry: in Nevada, search the Secretary of State's business entity lookup for the company name.
- Ask for proof of funds for the offer amount.
- Ask which title company they'll use, then call the title company yourself.
- Ask directly: "Are you buying it, or assigning the contract?" Some companies are wholesalers who pass your contract to another buyer. That isn't automatically bad, but you deserve to know.
- Read the contract for the closing date, contingencies, earnest money and who pays closing costs. Have an attorney or agent review it if you're unsure.
What a Fair Cash Offer Looks Like
Cash buyers pay less than full retail because they take on repairs, holding costs and risk. A fair offer explains how the price was reached: the after-repair value, the estimated repairs and the costs. If a buyer won't explain their number, ask why. Read how to tell if a cash offer is fair and how long a cash sale should take to close.
How Sell My House Pro Works
We're a property investment company located at 1628 Athol Ave, Henderson, NV 89011, with a verified Google Business Profile. We put every offer in writing, close through a licensed title company, never charge sellers upfront fees, and explain how we reached our number. We also do subject-to purchases, which we explain in full before anything is signed. See how it works and our services, or call (725) 353-4731.
Frequently asked questions
How do I know if a "we buy houses" company is legit?
Check for a real address and reviews, proof of funds, a licensed title company handling the closing, and no upfront fees. Missing any of those is a red flag.
Should a cash home buyer ever charge me a fee?
No. Normal closing costs are handled through the title company and spelled out in the contract. The buyer should never ask you to pay them directly.
What is a wholesaler?
A wholesaler puts your house under contract and then assigns that contract to another buyer for a fee. Ask any buyer whether they plan to close themselves or assign the contract.
Can a cash buyer back out after signing?
Only if the contract gives them a way out, such as an inspection contingency. Short, clear contingencies protect you.