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Avoiding Scams

“We Buy Houses” Scams & Wholesalers: How to Spot a Real Cash Buyer

June 8, 2026
by Buy Right Homes
Metro Detroit home renovated by Buy Right Homes.

Drive around Metro Detroit and you'll see the signs on every other corner: 'We Buy Houses, Any Condition, Cash.' Some of those are real buyers. Many are not. A lot of them are wholesalers who never intend to buy your house at all — they lock it up under contract and sell that contract to someone else. Knowing the difference protects you from a deal that changes price at the last minute or falls apart entirely.

Buyer vs. wholesaler: the key difference

A real buyer closes the purchase with their own money and (in our case) renovates the home afterward. A wholesaler signs a purchase contract with you, then shops that contract around to actual investors for an assignment fee. You may never meet the person who ends up owning your house — and the wholesaler's profit depends on how low they can get your price and how high they can flip the contract.

Red flags to watch for

  • The contract says the buyer can 'assign' it, or names the buyer as someone 'and/or assigns.'
  • They can't or won't show proof of funds.
  • Heavy pressure to sign today, before you've had time to think.
  • The price drops right before closing — a renegotiation after they've tied up your house.
  • A long inspection or 'feasibility' period that lets them walk away for any reason.
  • They're vague about who is actually buying the home.
  • They ask you for money or fees upfront.

Green flags of a real buyer

  • Buys in their own name and closes the deal themselves.
  • Can show proof of funds without drama.
  • Has a real local track record — we're based in Metro Detroit, have been at this 13 years, have evaluated 360+ homes across Oakland, Macomb, and St. Clair counties, and renovate the houses ourselves (see our work).
  • Gives you a clear, firm timeline.
  • No upfront fees, ever.
  • Is comfortable with you taking time to decide.

Questions to ask any cash buyer before you sign

  • Will you close in your own name, or assign the contract to someone else?
  • Can you show me proof of funds?
  • Do you renovate the homes yourself, or resell the contract?
  • What could change your offer after we sign?
  • Are there any fees on my side?
  • How long is your inspection period, and what lets you back out?

A real buyer answers every one of those without flinching. If the answers get slippery, that's your signal to slow down.

An honest note about wholesaling

Wholesaling isn't automatically a scam — plenty of wholesalers operate openly and some sellers do fine with them. But you deserve to know whether the price can change after you sign and who is really buying your home. If a deal feels rushed or keeps shifting, step back and get a second offer to compare. A trustworthy buyer will respect that.

And if it turns out listing on the open market would serve you better than any cash offer, we'll tell you — our partner, a licensed agent, can handle that. Either way, you should never feel boxed in.

Frequently asked questions

What is a real estate wholesaler?

Someone who puts your house under contract and then sells that contract to another investor for a fee, instead of buying the home themselves. The end buyer can be different from who you signed with, and the price can get renegotiated.

How do I know a cash buyer is legitimate?

Ask for proof of funds, confirm they close in their own name (not 'and/or assigns'), look for a real local track record, make sure there are no upfront fees, and watch for pressure tactics.

Does Buy Right Homes assign contracts?

No. Mike buys directly and renovates the homes himself — the offer you accept is the offer that closes. We're a local investor, not a wholesaler flipping your contract to a stranger.

Thinking about selling?

Tell us about your house and get a fair, no-obligation cash offer — or honest advice on whether listing would net you more. No repairs, no fees, no pressure.

We buy across Metro Detroit — see where we buy →

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Schedule your free, no-obligation estimate today. We look forward to earning your business.