Guide · Checking a buyer
Are We Buy Houses Companies Legit? How to Tell
We buy houses for cash, so read this knowing that. The model is legitimate and has existed for decades. The standard of operator varies enormously, and there are four specific practices worth knowing about before you talk to anybody, including us.
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The model itself is legitimate
Buying property directly, for cash, in poor condition, and renovating it for resale or rental is an ordinary business that has existed for as long as there has been property. It exists because mortgage lending cannot cross certain gaps, and somebody has to buy the houses lenders will not fund.
What has given the industry its reputation is not the model. It is a set of specific practices that some operators use and others do not, and none of them are illegal in every case, which is exactly why they persist.
The four practices worth knowing about
Contract assignment, sometimes called wholesaling. A buyer puts your property under contract and then sells that contract to a third party for a fee rather than buying it themselves. The person at closing is somebody you have never met, the assignment fee comes out of the spread, and if no end buyer is found the deal can simply collapse. It is legal in many circumstances and several states have moved to regulate or license it. What matters is that you know which one you are dealing with, and the way to know is to ask.
Post inspection renegotiation. A high initial offer secures your agreement and removes you from the market. An inspection then produces findings and the price is reduced, frequently close to closing when you have already committed to a move. The defence is a written offer and a buyer who does not commission a second inspection that can reopen the negotiation.
Long option periods. A contract that gives the buyer weeks or months to decide, during which your property is tied up and you cannot sell to anybody else. Read the timescales in anything you sign.
Pressure and expiry theatre. Offers that expire in hours, discouragement from getting a second opinion, or urgency that does not match your actual situation. A real offer survives you thinking about it for a week.
Four questions that sort it out in two minutes
Are you buying this property yourself, or assigning the contract to somebody else? A straight answer either way is fine. Evasion is not.
Will the offer be in writing, with an expiry date? Anything verbal can move.
Which title company will we close at, and can I choose a different one? Every legitimate sale closes through a title company or closing attorney. A buyer who wants to handle the deed outside that process is a buyer to walk away from.
Will you show me how you reached the number, including the repair estimate? Not every buyer will, and a refusal is not automatically dishonest. It does mean you are being asked to trust a figure you cannot test.
Genuine warning signs
Any request for money from you up front. A legitimate buyer pays you.
Any request to transfer the deed before funds have moved, or to sign a deed outside a title company. This is the mechanism behind most property fraud and there is no legitimate reason for it.
Instructions to stop communicating with your mortgage servicer, which is a hallmark of foreclosure rescue schemes.
An offer made without anybody seeing the property, which is not automatically dishonest but is frequently the opening number in a renegotiation strategy.
Refusal to put anything in writing, or a contract you are asked to sign at the kitchen table without time to read it.
What a legitimate transaction looks like
A conversation about the property and your timeline, without pressure. One visit. A written offer within a day or two, with an expiry date far enough out that you can think about it or get a second opinion. A simple purchase agreement you are free to have reviewed by an attorney. Earnest money deposited with the title company rather than with the buyer. A title search. A closing at that title company where the mortgage and liens are paid, you sign, and funds are wired or issued as a cashier's cheque.
That is the whole process. Anything materially different from it is worth asking about.
How to check a specific company
Ask how many closings they have completed in your county specifically, not in the region. A buyer who advertises across Green Country and has never closed in Cherokee or Okmulgee County may still decline once they hear the address, or price the drive into the offer.
Ask the title company. They see every operator in the area and they will tell you whether a buyer closes what they contract.
Look for reviews that describe a situation rather than an adjective. Twenty identical five star reviews saying 'great company, very professional' tell you nothing. One that says the seller was four months behind and closed in nine days tells you a great deal.
Get two or three offers. No legitimate buyer will object, and a buyer who pressures you not to has answered a different question.
How it works
Three steps, and you can stop at any of them
Ask the four questions before anything else
Buying it yourself or assigning. Offer in writing with a date. Which title company and can you choose. Will they show the working. Two minutes, and it sorts most of the field.
Get more than one offer
Two or three cost you nothing and tell you whether the first was reasonable. Any buyer who discourages this has told you something useful about themselves.
Never sign a deed outside a title company
Every legitimate sale closes through a title company or a closing attorney, with funds moving at the same time. There is no situation where handing over a deed early is in your interest.
Common questions
Frequently asked questions
Are we buy houses companies a scam?
The model is not. Buying property directly for cash and renovating it is an ordinary business. Specific practices within the industry cause the problems, principally contract assignment without disclosure and renegotiating a price after the seller is committed.
What is wholesaling and why does it matter to me?
A buyer puts your property under contract and sells that contract to somebody else for a fee rather than buying it. The person at closing is a stranger to you and if no end buyer is found the deal can collapse. Ask directly which one you are dealing with.
Is wholesaling illegal?
It is legal in many circumstances and several states have moved to regulate or license it. The problem is usually disclosure rather than legality. Ask, and expect a straight answer.
Why would a buyer lower their offer before closing?
Because it works. A high number removes you from the market and creates commitment, and a reduction close to closing lands when you have already planned a move. The defence is a written offer from a buyer who does not run a second inspection that can reopen it.
Should the offer be in writing?
Always, with an expiry date. Anything verbal can move and you have no record of what was agreed. A written offer with a sensible expiry is the minimum standard.
Can I choose the title company?
You should be able to, and a buyer who insists on their own without explanation is worth questioning. Every legitimate sale closes through a title company or closing attorney.
What if a buyer asks me to sign the deed early?
Walk away. Funds and deed move together at closing, through a title company. There is no legitimate reason to transfer a deed before you have been paid, and this is the mechanism behind most property fraud.
Should a cash buyer see the house before offering?
Ideally yes. Offers made sight unseen are not automatically dishonest, and they are frequently the opening number in a strategy that ends with a reduction after a visit. Ask whether the number will change once they have been inside.
How do I check a company's track record?
Ask how many closings they have completed in your specific county. Ask a local title company, because they see everyone. And read reviews that describe situations rather than adjectives.
Is it worth getting more than one offer?
Yes, always. Two or three cost nothing and tell you whether the first was reasonable. Pressure not to is itself an answer.
How does selling a house for cash actually work?
A conversation, one visit, a written offer, a simple purchase agreement, earnest money with the title company, a title search, and a closing where the mortgage and liens are paid and you receive the balance. Seven to twenty one days is normal.
Do cash buyers charge fees?
A legitimate one does not charge you anything. No commission, no admin fee, no processing charge. Any request for money from you before closing is a reason to stop.
Are national franchises better than local buyers?
Neither is automatically better. Franchises have brand recognition and local operators often know the specific market better. The four questions apply equally to both.
Should I be sceptical of you as well?
Yes, and we would rather say so. Ask us the same four questions, ask the title company about us, and get other offers. A buyer who is uncomfortable with any of that is telling you something.
Other situations
Related pages
Other guides worth reading alongside this one.
Where we buy
Tulsa and eighteen Green Country towns
Each town has its own page setting out what selling there actually involves, including the local quirks that affect a sale.
Find out what your house is worth in cash
One short conversation, a written offer within 24 hours, and no pressure to take it. If listing is genuinely the better route for your property, we will tell you that instead.