If you’ve seen “We Buy Houses” signs or ads, you might be wondering: is this legit? How does it actually work? And is the offer going to be real?
Fair questions. Here’s an honest, straightforward explanation of how cash home buyers operate — including what to watch out for.
Step 1: You Contact the Buyer
It starts with a phone call, a form submission, or a text. You tell the cash buyer about your property — address, basic condition, your situation. This takes 5–10 minutes.
A legitimate cash buyer will not pressure you in this first conversation. They’ll ask questions to understand your situation and your property.
Step 2: They Assess the Property
The buyer will either do a quick walkthrough of the property or, in some cases, make an offer based on photos and comparable sales in the area. They’re looking at the property’s current condition and what it will take to get it rent-ready or resell-ready.
This is how they calculate their offer: they start with what the home would be worth after repairs (ARV — after repair value), subtract the cost of those repairs, subtract their profit margin, and land on your offer price. That’s why cash offers are typically below full market value — the buyer is taking on the risk and cost of the repairs.
Step 3: You Receive a Written Offer
A legitimate cash buyer will give you a written offer with no obligation to accept. The offer will specify the purchase price, the proposed closing date, and any conditions. Read it carefully. Ask questions.
Red flag: If a “buyer” asks for money upfront or won’t put the offer in writing, walk away.
Step 4: You Accept (or Decline)
No pressure. If the offer works for you, great — you sign the purchase agreement and pick your closing date. If it doesn’t, you say no and there’s no cost to you. A good cash buyer will not push you to accept an offer that isn’t right for your situation.
Step 5: Closing
Once you accept, the buyer handles the paperwork and coordinates with a title company. You don’t need to hire an agent or attorney (though you can if you want to). Closing typically happens at a title company where both parties sign documents and funds are transferred.
Because there’s no lender involved, there’s no financing contingency and no waiting on bank approvals. Closings can happen in 7–14 days in most cases, or longer if you need more time.
Is the Offer Always Lower Than Market Value?
Usually, yes — and there’s a good reason for that. A cash buyer is taking on risk, paying for repairs, and moving quickly. In exchange, you get speed, certainty, no repairs, no commissions, and no showings. Whether that trade-off is worth it depends entirely on your situation.
For sellers who need to move fast, avoid costly repairs, or get out from under a stressful property situation, the convenience is often worth the difference in price. For sellers with no time pressure and a move-in-ready home, a traditional listing may net more money.
What to Look for in a Legitimate Cash Buyer
- They can explain exactly how they calculated your offer
- They put everything in writing with no pressure to sign immediately
- They have a local presence and real contact information
- They don’t ask for fees or money from you upfront
- They close through a licensed title company
- They have verifiable reviews or references from past sellers
Want to See What We’d Offer on Your Home?
At Property Point Solutions, we buy houses in [YOUR CITY/AREA] for cash — in any condition, any situation. We’ll explain our offer in plain language and never pressure you to accept. If it’s not the right fit, we’ll tell you that too.