Before signing anything with a cash home buyer, ask how they’ll verify funds, whether the offer can change after inspection, who covers closing costs, and how quickly they can actually close. A legitimate buyer will answer all four without hesitation — a vague or evasive answer to any of them is worth pausing over.
Memphis has no shortage of companies advertising “we buy houses for cash,” and most of them are legitimate. But the format makes it easy for a handful of bad actors to blend in, especially when a seller is under time pressure from foreclosure, an inherited property, or a house that needs more repairs than they can afford. The questions below are the same ones a careful buyer would want answered before signing with anyone — including us.
The Checklist: 8 Questions to Ask Before You Sign
- Can you prove you have the funds to close?
Ask for proof of funds — a bank statement or letter from their financial institution. A legitimate cash buyer can produce this without delay. If they can’t, they may be planning to line up funding after signing or wholesale the contract to someone else entirely. - Is this offer final, or can it change after inspection?
Some buyers quote an attractive number upfront, then lower it significantly after a walkthrough — a tactic sometimes called re-trading. Ask directly whether the number they’re giving you is the number you’ll see at closing. - Who pays closing costs and fees?
A straightforward cash sale usually has no agent commissions and minimal closing costs, often covered by the buyer. If a contract includes unexplained fees, ask what each one is for before signing anything. - How fast can you actually close, and is that in writing?
“Fast closing” means different things to different buyers. Ask for a specific closing date in the contract, not a general estimate, so there’s no ambiguity about the timeline. - Are you buying the house yourself, or assigning the contract to someone else?
Some “buyers” are actually wholesalers who plan to sell your contract to another investor for a fee. That’s not inherently dishonest, but you deserve to know who you’re really dealing with and whether the deal could fall apart if they can’t find a buyer. - Can I see reviews or talk to a past seller?
A company with a real local track record should have Google or BBB reviews you can check, and ideally a past client willing to share their experience. - Is there a cancellation or contingency clause if I change my mind?
Understand exactly what happens if you need to back out before closing, and whether doing so carries any penalty under the contract. - Do you have a local address and a real business history?
A PO box and a phone number aren’t enough. Look for a company with a physical presence in Memphis, an established BBB profile, and a history of closed deals in the area rather than a national call center reading from a script.
Red Flags Worth Walking Away From
- Pressure to sign the same day, with no time to review the contract
- An offer that drops significantly after the initial walkthrough with no clear repair justification
- Refusal or delay in providing proof of funds
- No verifiable local address, reviews, or business history
- Contract language you don’t fully understand, and the buyer discourages you from having it reviewed