Yes, most cash home buyers are legit, but not all of them. Some are real businesses that close with their own money, some are wholesalers who sell your contract to another investor, and a few are scams. You can usually tell which one you’re dealing with in about ten minutes. Ask for proof of funds, ask who will actually close, make sure a real estate attorney handles the closing, and never pay a fee upfront.
The 5-question check
- Can you show me proof of funds?
- Will you close on this yourself, or assign the contract?
- Who handles the closing?
- Are there any fees I pay?
- Can the price change after you walk through?
Are “we buy houses” companies legit?
I’m Joe, and I buy houses around Richmond, so you could say I’m biased. That’s exactly why I’d rather give you a checklist you can run on anyone, including me. In my experience, buyers come in three kinds:
- Direct cash buyer: buys the house and closes with its own money or its own partners.
- Wholesaler: puts your house under contract, then assigns that contract to another investor for a fee.
- Scammer: wants money, your deed, or your personal information, and never plans to close.
Assigning a contract isn’t illegal. In Virginia, though, the definition of “real estate broker” in Va. Code §54.1-2100 includes people who deal in real estate contracts, assignable ones included, for pay. Virginia law treats repeated contract assignment as broker activity. If you aren’t sure how that applies to someone you’re talking with, ask a Virginia real estate attorney.
Red flags that should stop you
- Upfront fees to “process” or “hold” your offer. A buyer shouldn’t charge the seller to make an offer (Yahoo Finance).
- Pressure to sign today, with no time to read the contract or ask someone you trust (AARP).
- Asking you to sign over your deed before closing. The CFPB warns about this one.
- Telling you to stop paying your mortgage (CFPB).
- No earnest money, or only a token amount (Yahoo Finance).
- Vague “walk away” clauses or a contract with no end date (AARP).
- Payment instructions that come from anyone but the closing attorney named in your contract. Wire fraud around closing is real, so always confirm instructions by phone.
How to vet a cash buyer in Richmond, step by step
- Ask for proof of funds. That means a recent bank or brokerage statement, or a bank letter, in the name of the company signing your contract. Proof-of-funds letters can be faked, so call the bank’s public phone number (not the number printed on the letter) to confirm it.
- Ask in writing: “Will you close on this yourselves, or assign the contract?” Then ask what that means for your price and your closing date.
- Ask who handles closing, then call that office yourself to confirm they have the file.
- Look the company up on the Virginia SCC Clerk’s Information System. You’ll see when it registered and who its registered agent is.
- Check land records. The circuit court clerks in Richmond City, Henrico, and Chesterfield keep land records, which show whether a company has actually bought homes.
- Read reviews carefully. Look for specifics like a neighborhood, a timeline, or a person’s name, and for recent dates on more than one site. A burst of same-week five-star reviews is a warning sign.
- Know your value first. Look up recent nearby sales and your county assessment before you hear any number (AARP).
- Have a Virginia real estate attorney or someone you trust read the contract before you sign (AARP).
Can a cash buyer lower the offer after inspection?
Yes, it happens. Some buyers make a high offer to win the contract and then cut it after the walkthrough. People call that a “retrade.” To protect yourself, ask before you sign what the inspection period allows, how long it lasts, and what could change the price. Get the answers in writing.
Legit cash buyer vs. red flag
| Item | Legit buyer | Red flag |
|---|---|---|
| Proof of funds | Shows it on request, and you can verify it | Dodges it, or hands you a letter you can’t confirm |
| Who closes | Tells you plainly how the deal closes | Vague, or you find out at the end |
| Fees | None charged to you to make an offer | “Processing” or “hold” fees |
| Earnest money | Real deposit, held at closing | None, or a token amount |
| Deed | Transfers at closing | Asks for it early |
| Timeline | You get time to review | “Sign today” |
| Price after walkthrough | Changes only for a real, unexpected problem | Routine cuts after you’re committed |
| Contract length | Clear end date | Open-ended, with broad walk-away clauses |
How Richmond Property Buyers answers this checklist
- Proof of funds: Yes, I’ll show it on request. Call the bank’s public number and verify it. I’d tell you to do that with anyone.
- Do we assign? Here’s the honest answer. You sign with me and close with me at the price we agreed on. Behind the scenes, depending on the house, I might keep it as a rental, fix it up and resell it, or close through a partner or the company we’re using for that deal. None of that changes your price.
- Price after the walkthrough: The price can change only if something major and unexpected turns up, like well or septic problems nobody knew about, or liens on the house that have to be paid at closing. I don’t renegotiate casually.
- Closing: Every one of our closings goes through a local real estate attorney.
- Fees: We buy as-is for cash. No repairs, no commissions, and no fees to you, and we cover typical seller closing costs.
- Timing: You get an offer within 24 hours, and you pick the closing date that works for you.
Want to see what past sellers said? Read our testimonials. You can also see how we buy houses step by step.
When a cash buyer isn’t your best option
If your house is in good shape, you have time to list it, and getting top dollar matters most, an agent may get you more money. A cash sale gives you speed, certainty, and an as-is sale. Our cash vs. listing comparison breaks down the trade-offs, and here’s how an iBuyer compares to a local home buyer. For more questions to ask, see 4 things to ask local home buyers and 5 ways to tell a great home buyer from a bad one.
Frequently asked questions
Are “we buy houses” companies a scam?
Most aren’t. Many are real businesses that close with cash. Watch for upfront fees, pressure to sign, and requests to sign over your deed before closing.
How do I know a cash buyer really has the money?
Ask for recent proof of funds in the name of whoever signs the contract, then confirm it by calling the bank’s public phone number. Letters can be faked.
What is a wholesaler, and is it legal in Virginia?
A wholesaler puts your house under contract and assigns the contract to another buyer for a fee. Assignment is legal, but Virginia treats repeatedly dealing in assignable contracts as broker activity (Va. Code §54.1-2100).
Should I ever pay a cash buyer a fee?
No. You’re the seller, and a legitimate buyer doesn’t charge you to make or hold an offer.
Can a cash buyer lower the price after inspection?
It happens. Ask before you sign what could change the price, and get it in the contract. With us, the price changes only for major surprises like unexpected well or septic problems, or liens that must be paid at closing.
Who handles closing in a cash sale?
A closing attorney or title company holds the funds and records the deed. We always close through a local real estate attorney. Confirm any payment instructions with the closing office directly.
Does Richmond Property Buyers charge fees?
No. We buy as-is, with no commissions or fees to you, and we cover typical seller closing costs.
Want me to go through this checklist with you? Call (804) 293-0208. We reply within 3 hours. Or request your free cash offer and get an offer within 24 hours.
Not legal advice. For legal questions about your sale, talk with a Virginia real estate attorney.