A woman named Carol called us last spring about her late mother's house in San Leandro. The first thing she said wasn't about the house. It was, "How do I know you're not one of those scams?" She'd seen the bandit signs on the freeway off-ramps her whole life. She'd gotten the yellow postcards. She didn't trust any of it, and she was right to be careful.
That's the honest starting point for this industry. You've heard the pitch a hundred times. Some of the people behind it are straight shooters. Some are not. Here's how to tell the difference before you sign anything, including with us.
The short version
Most established "we buy houses" companies are legitimate businesses that pay cash for homes as-is. A smaller number are bad actors who tie up your house with no real intent to buy.
A real cash buyer pays below full retail, usually 10% to 20% under what your home would sell for fixed up and listed, sometimes more if it needs heavy work. In exchange you skip repairs, agent commission, showings, and the wait. You can verify any buyer in about 20 minutes. We'll show you how.
Why the industry has a bad rap
The barrier to entry is almost nothing. Anyone can print signs, put up a website, and call themselves a home buyer with zero money in the bank. So the field fills up with people who have no funds and no track record.
The honest companies get lumped in with them. That's not fair to you, because you're the one who has to figure out which is which. The good news is that the things separating a real buyer from a paper one are easy to check.
How legit cash buyers actually work
A real cash buyer purchases your home directly, with their own funds, and closes through a licensed title and escrow company. There's no bank loan to approve, which is why they can close in 3 to 7 days instead of 45.
The model is simple. They buy at a discount to retail, cover the repairs and the carrying costs, fix the home, and resell it. The discount is how they get paid and how they cover the risk of buying a house sight-unseen by a lender. They take on what you'd otherwise carry: the bad roof, the cleanout, the months of uncertainty.
That's the trade. Speed and certainty in exchange for a price below top-of-market. A legitimate buyer will say that to your face. We just did.
How much do "we buy houses" companies pay?
Here's the part sellers most want to know, in plain numbers.
A fair cash offer starts from what your home would sell for fully repaired and listed. From there the buyer subtracts the cost of repairs and a margin for their risk and time. On a clean home that needs little work, the offer lands closer to retail. On a home that needs $80,000 in work, the offer drops to make room for that work.
| Path | Typical net to you | Time to close | You handle |
|---|---|---|---|
| List with an agent (market-ready home) | Highest, after ~6-9% in costs | 60-90 days | Repairs, showings, commission |
| Sell to a legit cash buyer | 10-20% under retail, sometimes more | 3 to 7 days | Nothing |
| "Offer" from a paper buyer | Often falls through | Never, or after delays | Lost weeks |
So a cash offer is lower than a clean listed sale. That's expected. The question is whether the speed, the zero repairs, and paying none of the closing costs make up the gap for your situation. For a lot of sellers they do. For some they don't, and we'll tell you which one you are.
Red flags and scams to walk from
These are the warning signs Carol was worried about. Any one of them is reason to stop.
They never plan to actually buy. Some outfits get you to sign a contract, then shop that contract to a different buyer and pocket the spread. They were never the buyer. If the other buyer doesn't show, they walk and you've lost weeks. Ask point blank: "Are you the one buying my house, with your own money?"
Earnest-money games. A serious buyer puts real earnest money into escrow, often $5,000 to $30,000, within a day or two of signing. A paper buyer puts down $100, or nothing. No deposit means no commitment.
Pressure and "today only" offers. "This price is only good if you sign right now" is a tactic, not a real offer. A good number is still a good number tomorrow. Real buyers expect you to think it over and get a second opinion.
Upfront fees. You should never pay a cash buyer anything to make you an offer or to "hold" the deal. Money flows to you, not from you.
Big offer now, big cut later. Some lure you with a high number, then "discover" problems right before closing and slash the price when you're too far in to back out. A fair buyer's number holds unless something genuinely new turns up.
How to vet any cash buyer in 20 minutes
Run this checklist on us and on anyone else you talk to.
- Ask for proof of funds. A bank statement or a letter showing they have the cash. Real buyers hand this over without flinching.
- Read the reviews. Look on Google and the Better Business Bureau. You want a long history with real names and real situations, not three reviews from last month.
- Check how long they've been around. A company that's bought homes for years has a track record you can find. We've been doing this in the Bay Area since 2009 and have purchased more than 2,000 homes.
- Confirm a real local presence. A phone number that a person answers, an address, a team you can meet at your kitchen table.
- Read the contract before you sign. Look for a real earnest-money deposit and a short, clear inspection window. If it's confusing, ask them to explain it in plain English. If they can't, that's your answer.
When a cash buyer isn't your best move
We'll say this plainly, even though we are one. If your home is clean, market-ready, and you have 60 days to wait, listing with a good agent will almost always net you more. A cash offer is built for condition problems, tight timelines, probate, foreclosure, a tired rental, or a house full of a lifetime of belongings. It is not built to beat a healthy listing on price.
So get a second offer. Get a free price opinion from a local agent and a cash offer from a buyer, then compare the real net numbers side by side. And walk away from anyone who pressures you, including us. A buyer who can't handle you taking a few days to decide is telling you who they are.
Carol did exactly this. She got an agent's opinion, got our offer, and chose us because the house needed a new roof and a full cleanout. We closed in 11 days. She kept what mattered to her and left the rest. That was the right call for her. It isn't for everyone.
What to do now
Two honest paths:
- List traditionally if your home is market-ready and you can wait. Get a price opinion from a local agent first.
- Get a cash offer if you want speed, certainty, and zero repairs or fees. Compare it to the listing path and pick the better net number.
Either way, vet whoever you talk to. Ask for proof of funds, read the reviews, and never sign under pressure. When you want a real person who will walk you through it with no pressure, call or text us at 415-800-1415, or fill out the short form below.
Frequently asked questions
Are "we buy houses" companies a scam?
Most established ones are legitimate businesses. A minority are bad actors who tie up your house without real intent to buy. You can tell them apart by asking for proof of funds, checking their reviews and years in business, and reading the contract for a real earnest-money deposit.
How much do "we buy houses" companies pay?
Usually 10% to 20% below what your home would sell for fully repaired and listed, and more if it needs major work. The discount covers the repairs, the risk, and the speed. A fair buyer explains exactly how they got to the number.
Are cash offers always lower than listing?
For a clean, market-ready home, yes, a top listing usually nets more. The cash trade is speed and certainty with no repairs, showings, or commission. For homes that need work or sellers on a deadline, the cash net often comes out ahead.
How do I vet a cash home buyer?
Ask for proof of funds, read Google and Better Business Bureau reviews, confirm how long they've been buying homes, make sure a real person answers the phone, and read the contract before signing. Never pay an upfront fee.
If you'd rather see the receipts before you talk to anyone, that's the right instinct. Read why sellers across the Bay Area trust Maple Home Buyers, browse our real seller reviews, and see exactly how the process works start to finish. When you're ready, get your no-obligation cash offer and compare it to listing.
About Roe
Roe is part of the Maple Home Buyers team. Roe leads the Maple Home Buyers team in the Bay Area. Family-owned, BBB accredited, 2,000+ homes purchased since 2009.
Learn more about our team →Thinking about selling? Get a free, no-obligation offer.
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