process · 8 min read
How to tell a legit cash buyer from a scammer
Red flags, real-world checks, and the questions that filter out the bad actors in the we-buy-houses space.
The "proof of funds" test
Any real cash buyer will provide a recent bank or brokerage statement showing the funds. If they refuse or stall, walk away.
Earnest money matters
A real buyer puts up earnest money in a third-party escrow. Tiny earnest money (e.g. $100) means the buyer has nothing at stake if they back out.
The "wholesale assignment" pattern
Some buyers contract to buy from you, then assign the contract to a third party at a markup. Not always bad, but you should know if that's the model. Ask directly.
Closing through a real attorney or title company
Every legitimate cash sale closes through an attorney or title company. If a buyer wants to handle it themselves, that's a major red flag.
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