Cash Buyer Red Flags: How to Protect Yourself

A cash sale can be a great option — but the space attracts a few bad actors. These are the warning signs to watch for, and the questions that keep you safe with any buyer.

Red flags

• No proof of funds, or excuses when you ask
• Won't disclose the buying entity or whether the contract can be assigned
• Pressure and artificial deadlines ("today only")
• A verbal number that quietly drops at closing
• No written terms, or vague ones
• Discourages you from involving an attorney or advisor

Questions that protect you

• Can you show proof of funds?
• Who is the legal buyer, and will you take title or assign?
• Are all terms in writing, with the net spelled out?
• Under what conditions could the price change?
• Can I have an advisor review this?

What good looks like

A trustworthy buyer welcomes these questions, puts terms in writing, discloses who's buying, and never pressures you. That's the standard we hold ourselves to — and the standard you should hold any buyer to.