Questions to Ask a Cash Home Buyer Before You Sign Anything
Every buyer should be able to answer these in writing. Here is what to listen for — and our answers, so you can hold us to them.
Why the questions matter more than the offer
The number on a cash offer is the easiest part to compare and the least reliable. What decides whether you're happy in ninety days is everything around the number: who is actually buying, whether the price can move after you sign, what comes out of the proceeds, and what happens if the buyer doesn't close. Ask every buyer the ten questions below and insist on written answers. An honest buyer answers them easily. One who gets vague or irritated has answered them too.
1. Are you the buyer, or will this contract be assigned to someone else?
Listen for: a direct answer, in the contract, not a speech.
Assignment isn't wrong in itself; hiding it is.
Our answer: we sign purchase agreements as a principal — a buyer,
not a broker and not a lead-generation site. A contract may be closed by us or assigned
to another buyer, as the agreement provides; the price and closing date do not change
either way. We do not sell your information to other buyers.
2. Can you show proof you can close?
Listen for: something you can verify yourself — call the
institution on a number you look up, not one the buyer gives you. A screenshot is not
proof.
Our answer: ask any buyer to show proof they can close, and ask us the
same. Ask for it in writing.
3. How did you arrive at this number?
Listen for: the components — what the house would be worth
repaired, what the repairs cost, the buyer's costs and margin. A buyer who can't name
them is guessing or hiding.
Our answer: we'll walk you through exactly those four parts for your
house, on the phone or in writing, and tell you plainly when listing would net you
more. See how the offer is built.
4. Can the price change after I sign, and on what grounds?
Listen for: the bait-and-switch is the most common complaint about
cash buyers — a high number to get the signature, then a cut in closing week.
The grounds for any change should be written into the contract.
Our answer: the written offer comes after we've seen the house and is
the offer. It changes only if something material was undisclosed and couldn't be seen,
and if that ever happened you could walk away owing nothing.
5. What comes out of my proceeds?
Listen for: a list, in writing. Commissions, "processing fees",
"transaction fees", repair credits — each one is a number you didn't get.
Our answer: no commission and no fee to us. Liens, taxes and your
mortgage are paid from the proceeds by the title company, itemized on the settlement
statement, the same as in any sale.
6. Who holds the earnest money, and is it refundable?
Listen for: held by the title company or escrow agent, never by the
buyer. A "deposit" the buyer holds themselves isn't one.
Our answer: the title company holds it, and the contract says when it
is and isn't refundable.
7. Does the contract have a financing contingency?
Listen for: the honest answer for a cash sale is no — there is no
loan approval to wait on and none to fall through. A "cash" buyer whose contract still
depends on a loan isn't making a cash offer.
Our answer: no financing contingency.
8. Which title company will close this, and can I choose my own?
Listen for: a real, named title company you can call. A buyer who
wants to close at a kitchen table, or with a notary they bring, is a warning sign.
Our answer: every purchase closes at a title company, and you're free to
choose one you trust.
9. How long do I have to decide, and can I walk away?
Listen for: no pressure. An offer that expires tonight is a tactic.
Our answer: the offer is in writing, there's no obligation to accept it,
and we'll leave it on the table while you think, talk to your family, or get another
quote to compare it against.
10. What happens if you don't close?
Listen for: what the contract says the seller keeps if the buyer walks,
and what the buyer's track record looks like — deeds recorded in the county's
records under the entity name on the contract.
Our answer: the contract states it, the earnest money is at the title
company, and you're welcome to look up the entity on the contract in the public
records before you sign — our
Texas vetting guide shows exactly how.
Then compare, honestly
If the house is in good shape and you can wait, listing with an agent may put more in your pocket, and our comparison page says so. A cash sale earns its place when the condition, the timeline or the situation makes the open market a worse bet — and only from a buyer whose answers to the ten questions above hold up.
Questions people in this situation ask
Is it rude to ask a cash buyer for proof they can close?
No. It's the single most useful question you can ask, and a buyer who bristles at it has told you what you needed to know. Ask everyone, including us.
What's the difference between a cash buyer and a wholesaler?
A wholesaler signs a contract intending to assign it to another buyer for a fee, rather than closing on it themselves. Neither model is illegal in Texas, but you're entitled to know which one you're dealing with, in writing, before you sign. Our contracts say plainly that they may be closed by us or assigned, and that the price and date don't change either way.
Should I get more than one cash offer?
Yes, if time allows. Two written offers with written answers to these questions tell you far more than one, and an honest buyer's number holds up to the comparison. We'll wait while you get a second one.
Want our answers in writing for your house?
Tell us the address. You'll get a written offer and the same ten answers, on paper.
Find out what we'd pay for your house
Tell us the address and a little about the property. There is no fee, no listing agreement and no obligation to accept anything we offer.