Updated October 2025. The "we buy houses" industry helps thousands of Washington homeowners sell quickly every year. But like any industry involving large sums of money, it attracts bad actors. Here are the warning signs that separate legitimate cash buyers from predators.
Red Flag #1: No Proof of Funds
A legitimate cash buyer can show you proof of funds — a bank statement or letter from their lender confirming they have the money to close. If a buyer cannot or will not provide proof of funds, they may be a wholesaler planning to assign your contract to another buyer for a markup. You end up waiting longer and potentially getting less.
What to do: Before signing anything, ask: "Can you show me proof that you have the funds to purchase my home?" A real cash buyer will provide this without hesitation.
Red Flag #2: Pressure to Sign Immediately
"This offer expires today." "I have other properties to look at." "If you don't sign now, I can't guarantee this price." These are high-pressure tactics designed to prevent you from thinking clearly, getting a second opinion, or comparing offers.
What to do: A legitimate offer should give you at least 48-72 hours to review, consult with family, or talk to an attorney. Walk away from anyone who demands an immediate signature.
Red Flag #3: No Physical Office or Online Presence
Scam operators often work from burner phones and P.O. boxes. They have no Google reviews, no website with real information, no physical office you can visit, and no verifiable track record.
What to do: Search for the company on Google. Check their BBB profile. Look for a physical address in Washington. Verify their business registration with the Washington Secretary of State. No digital footprint = no deal.
Red Flag #4: The Offer Drops at Closing
Some unethical buyers make an attractive initial offer to get you under contract, then reduce the price just before closing — citing "inspection findings" or "market changes." By that point, you have already stopped marketing your home and may feel trapped.
What to do: Your contract should have a firm price. Be wary of contracts with broad inspection contingencies that allow price renegotiation. A legitimate cash buyer's offer should be their offer — period.
Red Flag #5: They Want You to Pay Upfront Fees
Legitimate cash buyers never charge sellers upfront fees, processing fees, or "evaluation costs." The buyer makes money on the property purchase, not by charging you for the privilege of receiving an offer.
What to do: If anyone asks you to pay money before or during the sale process, it is a scam. Full stop.
Red Flag #6: No Transparent Offer Breakdown
A serious buyer should be able to explain exactly how they arrived at their offer number — comparable sales, estimated repair costs, their margin. If the explanation is vague ("that's just what we can do") or they refuse to show their math, they are likely lowballing you and hoping you will not question it.
What to do: Ask for a written breakdown of how the offer was calculated. Compare their repair estimates and comparable sales to your own research. If the numbers do not add up, get another offer.
Red Flag #7: Contract Includes an "Assignment" Clause
Wholesalers buy the right to purchase your home (via contract), then sell that contract to an actual buyer at a higher price. You get paid less. They pocket the difference. While wholesaling is legal in Washington, many sellers do not realize they are dealing with a wholesaler rather than an actual buyer.
What to do: Read the contract carefully. Look for language about "assigns" or "and/or assigns." Ask directly: "Are you the one buying my house, or will you assign this contract to someone else?" A direct buyer has no need for assignment clauses.
How to Protect Yourself
- Get multiple offers. Never accept the first offer without comparing. Get at least 2-3 cash offers plus a listing projection.
- Verify everything. Google reviews, BBB, Secretary of State registration, proof of funds.
- Read the contract. Have a real estate attorney review before signing. A few hundred dollars for legal review can save tens of thousands.
- Take your time. Legitimate buyers give you space to decide. Scammers create urgency.
- Ask for references. A company that has closed dozens of deals can provide past seller references. If they cannot, ask why.
- See both options. Companies like HouseRush show you a cash offer alongside a listing projection so you can see whether cash is actually the right move. See how our transparent process works and review a sample offer breakdown.
Frequently Asked Questions
Are all "we buy houses" companies scams?
No. Many are legitimate businesses that provide a real service. The key is knowing how to verify legitimacy — check reviews, verify proof of funds, and never sign under pressure.
What is a fair cash offer for my house?
Legitimate cash offers in Washington typically range from 70-85% of fair market value. Anything below 60% without clear justification (major structural issues) is a red flag.
How do I verify a cash buyer is legitimate?
Check Google reviews, BBB profile, physical office address, WA Secretary of State business registration, and ask for proof of funds and seller references.