Cash home buying is a legitimate part of the real estate industry, and plenty of individuals and companies close real, verifiable transactions every day. It also attracts some opportunistic and occasionally predatory operators, though, so it's worth doing a little homework before you sign anything. Legitimate buyers put offers in writing, close through a licensed title company or attorney, never ask you for money upfront, and are happy to answer questions about how they arrived at their number.
Warning signs to watch for
- Pressure to sign immediately, or claims the offer disappears within hours.
- No local presence, no working phone number, or no verifiable business name.
- Reluctance to close through a licensed title company or escrow.
- Any request for money upfront — application fees, “processing” fees, or deposits from you.
- An offer that seems unusually high with no explanation for how they got there.
What a legitimate buyer will do
They'll give you a written offer with a specific dollar amount, close the transaction through a licensed title company or real estate attorney, welcome you comparing their offer to others or to recent comps, and put no obligation on you to accept.
How to verify a buyer before you sign anything
Search the company or individual's name alongside “reviews” and check the Better Business Bureau. Ask for references or examples of past closings. Confirm which title company or escrow office they plan to use — a real title company will confirm the transaction is set up. And make sure there's a real local phone number and address behind the offer, not just a lead form.