Are Cash Home Buyers Legit? How to Spot a Scam

We're a cash home buyer ourselves, and we'll happily tell you: vet us the same way you'd vet anyone. A legitimate buyer welcomes scrutiny. Here's how to separate the real ones from the scammers.

Green Flags of a Legitimate Cash Buyer

• They'll show proof of funds — a bank statement or letter proving they can actually pay cash
• They explain how they got their offer (ARV, comps, repair estimate)
• They close at a licensed title company or attorney — never "just between us"
• They have a real address, real reviews, and a real person you can talk to
• No pressure — a real offer doesn't expire in 20 minutes
• They never ask you for money — you should never pay a cash buyer anything

Red Flags — Walk Away If You See These

• They ask for any upfront fee — application fee, "processing," anything. Legitimate buyers pay you.
• They pressure you to sign immediately with a "today only" offer
• They won't close at a title company or want to handle money directly
• They can't or won't show proof of funds
• They want you to sign over the deed before closing — never do this
• The contract lets them back out anytime but locks you in
• They ask for your bank login, SSN by text, or wire money to "verify" — straight-up fraud

The "Assignment" Question

Some wholesalers put your house under contract, then sell that contract to another buyer (an "assignment"). That's legal and common, but you should know if it's happening — ask: "Are you the end buyer, or will you assign this contract?" A buyer who closes in their own name (like us) gives you more certainty than a chain of assignments that can collapse.

Questions That Expose a Bad Buyer Fast

1. "Can you show me proof of funds?"
2. "What title company will we close at?"
3. "How did you calculate this offer?"
4. "Are you the end buyer or will you assign the contract?"
5. "Is there any cost to me at any point?" (Answer should be a firm no.)

A legitimate buyer answers all five without hesitation. A scammer gets cagey.

How to Verify Any Buyer (Including Us)

• Look them up on Google and read real reviews
• Check the Better Business Bureau
• Confirm they're a registered business entity in your state
• Ask for references from past sellers
• Make sure closing happens at a reputable, independent title company

Do this with us, and do it with anyone else you're considering. The good ones will respect you for it.