You’ve seen the signs on the telephone poles. You’ve gotten the postcards, maybe even a text from a number you don’t recognize. “We buy houses, any condition, cash.” If you’re behind on payments, dealing with an inherited house you don’t know what to do with, or just tired of being a landlord, those offers can feel like a lifeline. They can also feel like a trap. You’re right to be careful. Some of them are.
We’re Deep Roots REI, and we buy houses in Baltimore and across Maryland. We also think you deserve to know how to spot “we buy houses” scams before you sign anything. So we’re going to walk you through it plainly, the same way we’d explain it to a neighbor sitting at our kitchen table.
Are cash home buyers legit? Usually, yes
Legitimate “we buy houses” companies are real estate investors. That’s the whole business. They buy homes quickly, usually with an all-cash offer, so the seller doesn’t have to wait on a mortgage buyer and doesn’t have to fix anything before selling. For someone who inherited a house three states away, or who’s facing foreclosure, or who just wants out of a rental property that’s become a headache, that speed and simplicity is the whole point. Some investors, as part of their offer, also cover costs a seller would otherwise pay out of pocket, like commissions, though that varies company to company.
That’s a real service. It’s also, unfortunately, a good disguise for people who aren’t operating in good faith. Some “we buy houses” operations exist specifically to target homeowners who are stressed, isolated, or in a hurry, and they use that pressure to get a signature on something the homeowner doesn’t fully understand.
The warning signs that actually matter
Here’s what we’d tell you to watch for, because these are the patterns that show up again and again in “we buy houses” scams.
They ask you for money. This is the biggest one. A real cash buyer pays you. If anyone asks you to pay an upfront fee, a “processing” charge, or any money at all before closing, walk away. That is backwards from how a legitimate sale works, full stop.
They want you to sign over the deed or title instead of doing a normal sale. A real purchase involves a contract, a title company or attorney, and a closing. If someone is pushing you to just sign the deed over to them directly, outside of that normal process, that’s a serious red flag. You could lose your home and any equity in it without the protections a real closing provides.
There’s no earnest money, or the deposit is oddly small. Earnest money is the buyer’s way of showing they’re serious. It’s their skin in the game. If a buyer won’t put down any deposit, or the amount is so small it doesn’t mean anything, that tells you they’re not actually committed to closing. They can walk away from you at any point with nothing lost.
The contract has broad walk-away clauses. Look closely at how the buyer can cancel. If the contract lets them back out for almost any reason, at almost any time, with no consequence, that’s not a real commitment to buy your house. It’s an option to string you along while they look for something better, or nothing at all.
They won’t show proof of funds. A legitimate cash buyer should be willing to show you they actually have the money to close. If someone won’t provide that when you ask, ask again, and if they still won’t, that tells you something.
No real address, no real website, nothing you can verify. Trustworthy buyers usually have a physical office or a verified local address, a professional website, and clear information about who they are. If all you have is a phone number and a first name, that’s not enough to hand over your house.
They rush you. A reputable buyer gives you time to actually read the contract. They don’t push for a signature on the spot. If someone is creating pressure to sign right now, before you’ve had a chance to think it over or show the paperwork to someone you trust, slow down. That pressure is the point, and it’s not there to help you.
What about wholesalers?
You might run into a buyer who doesn’t plan to actually keep your house. That’s not automatically a scam. In a legitimate wholesale deal, the buyer signs a contract to purchase your home and then assigns that contract to a different investor, usually for a bit more than they agreed to pay you. That’s a normal, legal part of how real estate investing works. The problem isn’t wholesaling itself. The problem is when a buyer isn’t upfront about what they’re doing, or uses the same scam tactics above to lock you into a bad deal before assigning it.
If you’re not sure, you have somewhere to go
If you’ve already signed something and you’re worried it wasn’t legitimate, or you just want a second opinion before you sign anything, you can report a suspected scam to your state attorney general or your real estate commission. That’s not an overreaction. That’s exactly what those offices are there for, and it costs you nothing to ask.
How we do things at Deep Roots REI
We’ll tell you plainly what we offer, because we’d rather you know the facts than take our word for it. When we buy a house, there are no real estate commissions involved. In most cases, we cover the closing costs, though we want to be honest that “in most cases” means exactly that, not every single time. We buy houses as-is, so you don’t need to fix anything before we look at it, no matter what condition it’s in. Closings typically happen within 30 days, sometimes faster, though we won’t promise you an exact date until we’re actually working through your specific situation.
And here’s the part that matters most to us: a cash sale isn’t always the right move. If your house is in good shape and could sell well on the open market, or if you have time and don’t mind the process, listing with an agent or selling it yourself might put more money in your pocket than a cash sale would. We’ll tell you that if it’s true for your house. We’d rather lose a deal than have you make a decision you regret.
A few honest questions people ask us
Is Deep Roots REI a real company, or just a name on a postcard? We’re a real, local operation, and we’re happy to give you our information, answer your questions directly, and show you we’re serious about buying, including proof of funds if you want to see it.
Are cash home buyers legit, or should I just assume it’s a scam? Most are legit. The industry itself is real, and plenty of investors, including us, buy houses honestly and pay sellers fairly for the convenience they’re offering. But a legitimate industry can still attract bad actors, so it’s worth checking the warning signs above no matter who you’re talking to.
Will you ask me for any money upfront? No. In a legitimate cash sale, the money moves from the buyer to the seller, never the other way. If anyone asks you for a fee before closing, that’s not us, and it’s not how this business works.
What if I already signed something with another company and I’m having second thoughts? Talk to a real estate attorney or contact your state attorney general’s office before doing anything else. Depending on what you signed and when, you may have more options than you think.
Do I have to accept your offer once I ask for one? No. We’ll walk you through the numbers, tell you honestly whether a cash sale fits your situation, and if it doesn’t, we’ll say so. There’s no obligation attached to a conversation.
How is a cash offer from you different from listing with an agent? Listing usually takes longer and may involve repairs, showings, and commissions, but can bring a higher sale price for a house that’s in good condition. A cash sale with us skips the repairs and the commissions and moves faster, which fits some situations better than others. We can talk through both so you can see which one actually makes sense for your house.
If you’ve got a house on your hands and you’re not sure what your options are, or you just want someone to look at an offer you’ve already received and tell you honestly what they see, reach out to us at Deep Roots REI. We’ll have a plain, no-pressure conversation, and if a cash sale genuinely fits your situation, we’ll make you a fair offer. If it doesn’t, we’ll tell you that too.