How to Verify a Cash Home Buyer Before You Sign Anything
Selling your house for cash is safe — when you work with the right buyer. Here is how we operate and how you can verify us.
When someone offers to buy your house for cash, your first instinct should be to verify them. That is healthy skepticism, and it protects you. The cash home buying industry is legitimate, but like any industry, not every operator is honest.
Here is exactly what to look for — and how we hold ourselves to each of these standards at Michael the Home Buyer.
1. Ask for proof of funds
A legitimate cash buyer should be able to show you proof that they actually have the money to close. This is typically a bank statement or letter from a financial institution confirming available funds.
If a buyer hesitates or refuses to provide proof of funds, that is a red flag. They may not actually have the cash and could be planning to assign your contract to someone else.
How we handle this: Michael provides proof of funds upfront to every seller. You will never wonder whether we can actually close.
2. Check Google reviews and BBB profile
Google the company name. Read their Google reviews — not just the star rating, but the actual written reviews from real homeowners. Look for specific details about the selling experience, not generic praise.
Check the Better Business Bureau for complaints or unresolved disputes. A company with no online presence at all is a concern.
How we handle this: Michael the Home Buyer has 240+ five-star Google reviews from real homeowners across Ontario. Read our reviews here.
3. Make sure a real lawyer handles closing
In Ontario, both the buyer and seller should have independent real estate lawyers. Your lawyer reviews the agreement of purchase and sale, handles title transfer, and ensures the funds reach you securely.
Never sign a contract without having your own lawyer review it first. If a buyer pressures you to skip legal representation, walk away immediately.
How we handle this: We always encourage sellers to hire their own lawyer. Every transaction goes through proper legal channels with independent representation on both sides.
4. Understand how they calculate offers
A trustworthy cash buyer will explain exactly how they arrived at their offer number. They should walk you through comparable sales, the condition of your property, and the estimated repair costs.
Be cautious of buyers who throw out a number without visiting the property or who cannot explain their math. A legitimate buyer has nothing to hide about their pricing.
How we handle this: Michael visits every home in person, explains the comparable sales data, and walks you through how the offer was calculated. No mystery numbers.
5. Beware of wholesalers pretending to be buyers
Wholesalers put your house under contract and then sell (assign) that contract to another buyer for a profit. They never intend to buy your house themselves. While wholesaling is legal, it creates risk: the deal can fall apart if the wholesaler cannot find a buyer.
Ask directly: "Are you the one buying my house, or will you assign this contract to someone else?" If the answer is anything other than "I am the buyer," proceed with caution.
How we handle this: Michael is the buyer. We use our own funds to close. Your contract is never assigned or flipped to a third party.
6. Never sign under pressure
High-pressure tactics are the clearest sign of a bad actor. Phrases like "this offer expires today," "you have to decide right now," or "if you talk to anyone else, the deal is off" are all manipulation.
A fair buyer gives you time to think, encourages you to consult a lawyer, and does not punish you for doing your due diligence.
How we handle this: Our offers have no expiration pressure. Take the time you need, talk to your family, consult your lawyer. We will be here when you are ready.
7. Compare at least two options
Even if you are confident in a cash buyer, get at least one other opinion. Talk to a realtor about what your home might sell for on the open market. Get a second cash offer. Compare the net proceeds after all fees, commissions, repairs, and carrying costs.
A buyer who discourages you from shopping around does not have your best interest at heart.
How we handle this: We encourage sellers to compare. Check out our cash offer vs. listing comparison to see the real numbers side by side.
Learn more about how we operate
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