To evaluate a cash home buyer, verify who you're dealing with, how the purchase will be funded, and what the contract actually requires. Ask for written terms and a clear closing plan. A polished website, friendly conversation, or proof-of-funds letter can be useful information, but none guarantees that a buyer will complete the purchase.
The short version
- Match the person you're speaking with to the company signing the agreement.
- Ask whether that company will buy the house or transfer its contract to someone else.
- Compare the written costs, conditions, and deadlines with the promises made to you.
- Use independently verified contact information when checking closing and payment instructions.
1. What is the legal name of the buyer?
Ask for the individual or business name that will appear on the contract, the person's role, and reliable contact details. If it's a business, you can check its registration with the relevant state office. Registration establishes a record; it doesn't establish experience, financial strength, or fair dealing.
An unfamiliar company name isn't automatically a problem. A buyer may use a separate entity for a purchase. They should be willing to explain the relationship clearly.
2. Will you purchase the house yourself?
Ask whether the buyer plans to take ownership or assign the purchase contract. If another party may close, ask how that party will be found, when you'll know its identity, and what happens if it doesn't proceed.
An assignment can be part of a legitimate transaction. The important questions are what was disclosed, what you agreed to, and who is responsible for performing. Our guide to buyers and wholesalers explains the distinction.
3. How will you fund the purchase?
Ask whether the funds are available now, come from a lender, or depend on another transaction. Request appropriate evidence and ask your closing professional to help assess unfamiliar documents. Any account evidence should protect unnecessary personal information.
Funding evidence can become outdated. Also check whether the contract allows a financing-related cancellation, regardless of whether the marketing calls the offer “cash.”
4. Can you explain how you arrived at the price?
A buyer should be able to discuss comparable properties, condition, and the costs relevant to their plan. You don't have to accept their assumptions. Ask what would change the number and compare other credible options before deciding.
Be careful with claims that one buyer will always pay more than every alternative. Ask what supports the comparison and which costs it includes. An explanation tied to your property is more useful than a broad promise of savings.
5. What will I pay, and what will I receive?
Request an itemized estimate covering agreed selling costs, credits, mortgage payoff, and other deductions. “No commission” doesn't answer every question about costs. Ask which figures are estimates and which can change.
Keep the offer and net proceeds separate. An honest estimate should make it possible to follow the math.
6. Who will hold the deposit?
Ask about the deposit amount, when it is due, where it will be held, and when it may be returned or forfeited. Confirm receipt through the appropriate closing professional.
A small deposit isn't proof of misconduct, and a large promised deposit isn't proof it was delivered. Read the terms and verify what actually happened.
7. What lets either party cancel?
Locate the inspection, financing, title, and other contingencies. Ask about deadlines and notice requirements. A short agreement can still give a buyer broad cancellation rights.
If the explanation and the language seem different, have a local attorney review the agreement. Don't assume every home-sale contract has a cooling-off period.
8. Can the price change after the walkthrough?
Establish whether the proposed price is preliminary, subject to an evaluation, or part of a signed contract. Ask what happens if the buyer requests a reduction.
You want to understand the process before moving plans depend on it. See what to know about an offer changing before closing.
9. Who will handle the closing?
Obtain the closing company's or attorney's name and contact information. Verify them independently. Ask how title questions, documents, and funds will be handled in your location.
Be cautious about unexpected requests to send money to a new person or account. Confirm payment instructions through a known contact rather than replying to a suspicious message.
10. Can I check relevant references?
Look for evidence of completed purchases and, where available, sellers willing to discuss their experience. Ask about communication, changes to the price, and whether the agreed dates were met.
Reviews are one input. Read for specific experiences, check more than one source, and remember that privacy may limit what a buyer can share about past sellers.
11. What happens if closing is delayed?
Ask who communicates the delay, how extensions are handled, and what the agreement says about missed deadlines. If you need a particular possession date, discuss it now.
A credible answer acknowledges dependencies. A promise that nothing can possibly go wrong should lead to more questions.
12. Can I take time to review this?
You should be able to understand an offer before signing it. Ask when it expires and why. Get independent advice where you need it, particularly if someone is asking for a deed, power of attorney, unusual payment, or documents you don't understand.
Keep copies of the agreement, amendments, and messages. If you suspect fraud, stop relying on the questionable contact and speak with the appropriate closing professional, bank, attorney, or consumer-protection agency. For wiring instructions, the CFPB explains how to verify a suspicious request.