Short answer: some are, and some are not. A "we buy houses" company is legitimate when it shows proof of funds, puts its offer in writing, closes through a title company or attorney, has a real local footprint and never asks you for money. Fail any one of those and you should slow down. Here are the seven checks to run on any Houston cash buyer before you sign, including us.
Why so many Houston homeowners ask this
Search for "we buy houses Houston" and you get a jumble: local investors, national franchises, wholesalers, directories, lead-generation sites and a handful of outright scams. They all use similar words, similar yard signs and similar websites. From the outside, you cannot tell who is who.
So the question is fair. The business model itself is legal and common. Plenty of people in Houston buy houses with their own money, repair them and sell or rent them. The risk is not the idea of selling for cash. The risk is the specific company you pick.
Three kinds of buyer you might meet
A direct buyer uses its own money, or money from partners, to buy your house and own it. This is the simplest case.
A wholesaler gets your house under contract and then sells that contract to another investor for a fee. That is legal, but it means the person you are talking to may not actually be the one who pays you. If they cannot find an end buyer, the deal can die weeks later and you have lost time.
A scammer collects fees or personal information and vanishes, or tries to get you to sign a deed or wire money before the sale is real. It is rare, but it is the reason for the checklist below.
Check 1: Ask for proof of funds
A real cash buyer can show you a recent bank statement or a letter from a lender that covers the purchase. If they dodge or get irritated, ask yourself why. A legitimate buyer expects the question.
Check 2: Get the offer in writing
A number over the phone is not an offer. A written offer shows the price, the closing date, who pays closing costs and any conditions. Compare it to what you were told. If the paper says something different from the call, stop.
Check 3: See who is behind the company
Look up the business name and the address. Is there a real person you can reach? Does the company show up in Texas business records? Do people mention it anywhere you trust? A local presence does not prove honesty, but a company with no footprint at all is a warning sign.
Check 4: Close through a title company or attorney
Your closing should run through a neutral third party. The title company searches the title, finds liens, holds the money and records the deed. Never wire money to a buyer. Never sign a deed before the funds are secured. Never hand over keys before you are paid.
Check 5: Never pay anything up front
A legitimate cash buyer does not charge application fees, inspection fees or processing fees. You are the one being paid. If someone wants money from you before closing, walk away.
Check 6: Read the contract and look for assignment language
Many purchase contracts say the buyer can assign the contract to someone else. That is how wholesalers work. It is not automatically bad, but you should know if it is there. Also look for clauses that let the buyer cancel for any reason, or that give them a very long time to close. If you are unsure, have an attorney read it. It is money well spent, especially for estate sales, houses with a mortgage and houses with tenants.
Check 7: Do not let anyone rush you
A fair offer is still fair tomorrow. Pressure like "this expires tonight" or "I have three other houses to look at" is meant to keep you from comparing options. Take the time you need.
Red flags in plain language
- They will not give you their full name or company name.
- They ask for a deposit or fee of any kind.
- They will not put anything in writing.
- They ask you to sign a deed or a power of attorney before closing.
- They push you to skip the title company.
- The price changes sharply after they walk through the house.
- You cannot find any real reviews, address or history for them.
What a legitimate cash offer looks like
On a house that needs work, a cash offer is almost always below what a fully repaired house would bring on the open market. That is normal. The buyer is taking on repairs, risk and holding costs. You get something in return: no repairs, no commissions, no showings and a date you control. If you also own a house in Missouri, We Buy Houses In KC buys in the Kansas City area.
If someone offers a price that matches or beats a repaired retail price on a house that needs a lot of work, be skeptical. Either they do not plan to honor it or they plan to renegotiate later.
To see how we work, read how it works, or look at how a sale goes in your area on our areas we serve page. If you are also weighing a traditional listing, our guide to selling your house for cash in Houston breaks down the numbers.
Questions to ask any buyer, us included
- Can I see proof of funds?
- Can I have the offer in writing?
- Which title company or attorney will close?
- Who pays closing costs?
- Can the contract be assigned to someone else?
- How did you arrive at this price?
- Can my attorney review the agreement?
We are glad to answer all of these. If a buyer is not, that tells you what you need to know.
The bottom line
Selling to a cash buyer is a legitimate way to sell a house, especially one that needs work or comes with a complicated situation. Whether a specific company is legit depends on how it behaves. Run the seven checks, ask hard questions and take your time. If you want to see our offer on your house, use the form on this page. There is no obligation.
Frequently asked questions
Are all we buy houses companies scams?
No. Many are real local businesses that buy with their own money. The key is to verify proof of funds, get an offer in writing and close through a title company or attorney.
Should I ever pay a fee to a house buyer?
No. A legitimate cash buyer does not charge you to get an offer or to close. Walk away from anyone who asks for money up front.
How do I know if a buyer is a wholesaler?
Look for language that lets the buyer assign the contract, and ask directly whether they will own the house or sell the contract. Wholesaling is not automatically bad, but you should know before you sign.
Should an attorney review the contract?
It is a good idea, especially for estates, houses with a mortgage and houses with tenants. A reputable buyer will not object.