Short version
Most "We Buy Houses" companies are just investors — and many are legitimate. But some use high-pressure tactics, hidden fees, or bait-and-switch offers to take advantage of homeowners in tough situations. Learn the 7 biggest red flags so you can protect yourself.
Why scams are so common right now
When the foreclosure rate surges and homeowners are under pressure, scammers come out in force. They know you're stressed, short on time, and might not read the fine print.
Florida is especially fertile ground for this because:
- It's a high-volume real estate state — more transactions means more chances to exploit sellers.
- Many homeowners are in financial distress — insurance costs, property taxes, and rising HOA fees are creating urgency.
- Light regulation — Florida doesn't require a real estate license to buy houses for cash. Anyone with a business card can call themselves a cash buyer.
That doesn't mean all cash buyers are bad. But you need to know what to look for.
The 7 red flags
They ask for money upfront
Real cash buyers never charge you anything. No "processing fees," no "repair deposits," no "earnest money from the seller." If someone asks you to pay before they buy your house, walk away. A legitimate buyer covers all closing costs or deducts them from the sale price — transparently.
The offer drops right before closing
This is the classic bait-and-switch. They offer you $200K, you sign a contract, maybe even stop paying your mortgage — then two days before closing, they "discover" problems and drop the price to $160K. You're stuck because you've already committed. A real buyer gives you a firm offer after inspecting the property, and doesn't surprise you at the closing table.
They pressure you to sign immediately
"This offer expires today." "I have another seller waiting." High-pressure tactics are the biggest warning sign. A real offer will still be good tomorrow. Anyone who won't let you take a contract home, sleep on it, or show it to an attorney is not acting in your interest.
They don't actually have the money
Many "cash buyers" are actually wholesalers — they sign a contract with you, then try to sell that contract to someone else for a profit. If they can't find a buyer, they cancel or renegotiate — after tying up your property for weeks. Ask: "Are you buying this property yourself, or assigning the contract?" If they dodge the question, that's your answer.
They won't close at a title company
In Florida, every real estate transaction should close at a reputable title company or through a real estate attorney. If someone wants to close at "their office," skip the title search, or hand you cash directly — run. Title companies protect both parties. Avoiding one is a giant red flag for deed fraud or lien issues.
They ask you to sign over the deed before getting paid
This is how equity skimming works. They convince you to transfer your deed — often with promises of "taking over your payments" or "helping you avoid foreclosure." Once they have the deed, they collect rent or resell the property. You lose your home and your equity. Never sign a deed transfer outside of a title company closing.
No online presence, reviews, or verifiable track record
Legitimate cash buyers have a BBB profile, Google reviews, a real website, and a history of closed deals. If the person contacting you has a Gmail address, a burner phone, and no social proof — they're likely running a one-deal-at-a-time hustle. Check the BBB. Check Google. Call their office number.
What a legitimate cash offer looks like
For comparison, here's what you should expect from a real cash buyer:
| 🚩 Scam buyer | ✅ Legit buyer | |
|---|---|---|
| Upfront fees | Asks for deposit or fee | Zero cost to seller |
| Proof of funds | Dodges or delays | Provides bank statement |
| Contract review | "Sign now or lose the deal" | Encourages attorney review |
| Offer changes | Drops price at closing | Firm offer after walkthrough |
| Closing | Skips title company | Closes at reputable title co. |
| Track record | No reviews or history | BBB, Google reviews, case studies |
How to protect yourself
Before signing
- Google the company name + "reviews" — check Google, BBB, and Yelp for real seller feedback.
- Ask for proof of funds — a bank statement or line of credit showing they can actually close.
- Have a real estate attorney review the contract — many offer a free 15-minute consultation. Do you need a lawyer?
At closing
- Insist on a title company — verify the title company is real and licensed with the FL Department of Financial Services.
- Never transfer your deed first — payment and deed transfer happen simultaneously at closing.
- Verify wiring instructions by phone — wire fraud is one of the fastest growing real estate crimes.
How FL Home Buyers is different
I wrote this article because I see what bad actors do in this industry, and it's frustrating. Here's how we operate — and how you can verify every claim:
- We never charge fees. Zero cost to you. No exceptions.
- We buy directly — no wholesaling. We're the end buyer. We close with our own funds.
- We close at a licensed title company. You pick the date. Typically 7–60 days.
- Our offer doesn't change. The number we give you after the walkthrough is the number at closing.
- We're BBB A+ Accredited with verified Google, BBB, and Yelp reviews.
- We encourage you to talk to an attorney. Take the contract home. Show it to whoever you want. See how our process works.
If someone else meets all those standards, they're probably legitimate too. The red flags above exist precisely because most scammers fail on multiple points simultaneously.
Want a real cash offer with no games?
Tell us about your property. We'll give you a firm number within 24 hours, explain exactly how we got there, and you decide. No pressure, no fees, no surprises.
💰 Ready to Sell?
See All Situations We Help With → From Probate to Foreclosure