How to tell if a “we buy houses” company is legit

Know what these buyers do

“We buy houses” companies, us included, are real estate investors. We buy houses as-is and make our money afterward by fixing, renting, or reselling them. The offer reflects the house as it sits today and the work and costs the buyer takes on after closing.

A direct sale makes sense for some sellers: no repairs, no showings, and a closing date you pick. Others are better served by listing with an agent. Knowing how the buyer makes money helps you judge whether the offer fits your situation.

Check that the buyer is real

A few minutes of checking tells you a lot. You are looking for real people and a real business that will still be there at closing.

• Names you can look up: who owns the company, and who will you actually talk to?
• A business registered with your state. Most states let you search business records on the Secretary of State’s website.
• A phone number that a person answers, and a website that explains who they are.
• Reviews on Google or the Better Business Bureau. Read the bad reviews too.
• Straight answers when you ask how they make money and who pays which costs.

Red flags that should stop you

Any one of these is a reason to slow down or walk away.

• Pressure to sign today. A good offer will still be there after you sleep on it.
• A request to pay a fee before anything is done. The FTC warns that charging upfront for mortgage relief is illegal.
• A request to sign over your deed before closing, or anywhere other than a title company or closing attorney.
• Advice to stop paying your mortgage or stop talking to your lender.
• A price or terms they will not put in writing.
• Promises of top dollar for a house that needs major work.

Read the contract before you sign

What counts is the written agreement. Read it slowly, and ask about anything you do not understand. It is reasonable to have an agent, a real estate attorney, or a housing counselor look it over first.

• The price, and who pays the closing costs
• The closing date, and whether you can change it
• How much earnest money the buyer deposits, and where it is held
• Any inspection period, and how either side can cancel
• What could change the price before closing

Close through a neutral third party

A normal sale closes through a title company or a closing attorney, depending on your state. They confirm who owns the house, pay off any mortgage or liens, and send you your money. They are a neutral party in the sale.

Keep your keys and your deed until closing. If a buyer wants to skip the title company or handle the money some other way, treat that as a red flag.

Compare before you decide

Get at least one other number. A local agent can tell you what the house might sell for after repairs, and what it would cost you to get there. Compare what you would actually keep, and how long each path would take.

If money is tight or a deadline is coming, a HUD-approved housing counselor can walk through your options for free before you sell to anyone.

A note about us

We are a small company, so you will not find hundreds of reviews yet. That is a fair reason to ask us more questions. We are Chase and Colby, you talk with us directly, there are no fees or commissions, we pay the closing costs, and nothing goes on paper until we agree on a number.