The Truth About “We Buy Houses” Companies—What You Should Know

What Does "We Buy Houses" Really Mean? 

If you’ve seen signs or online ads that read "We Buy Houses for Cash," you might wonder: Is this legit? The short answer is: it depends. Some companies are professional problem-solvers offering real value. Others cut corners or aren't fully transparent with sellers. 

This article unpacks how these companies work, how they make money, and how to evaluate whether you're getting a fair and honest offer. 

How These Companies Typically Operate 

"We Buy Houses" companies are usually real estate investors who specialize in buying off-market properties. Most operate using one of two models: 

1. Fix-and-Flip Investors 

They buy homes in need of repairs, renovate them, and resell at a profit. 

2. Buy-and-Hold Investors 

They purchase homes to rent out, focusing on long-term cash flow and appreciation. 

Some buyers also partner with other investors or buyers, which helps provide flexibility and faster closings. 

Why Cash Offers Are Below Market Value 

Cash buyers take on the responsibility for everything after the sale. That includes repairs, holding costs, closing fees, and market risks. A legitimate investor isn't trying to undercut you—they're factoring in real costs like: 

• Renovations (often using licensed contractors) 

• Taxes, insurance, utilities, and maintenance 

• Realtor fees and buyer closing costs on resale 

• Unpredictable repair issues or delays 

When those costs are subtracted from the resale value, a lower offer is often the only way the numbers make sense. 

For a detailed breakdown of how fair offers are calculated, check out our guide: What’s a Fair Cash Offer for My House? 

Red Flags to Watch Out For 

While many investors are honest and hardworking, there are still some bad actors out there. Watch for: 

• Vague or confusing contracts 

• Pushy sales tactics or pressure to sign quickly 

• Last-minute changes to the agreement 

• Out-of-area buyers who avoid giving personal details 

Your best defense is to ask questions, trust your gut, and take your time before signing anything. A trustworthy buyer will be responsive, helpful, and clear. 

What Sets Good Buyers Apart 

Reputable companies go the extra mile: 

• Offer simple, easy-to-read contracts 

• Explain how they arrive at their offer 

• Treat you with respect and transparency 

• Give you room to compare your options 

Some buyers, like us at Salvato & Co., are also licensed agents. This means we can provide you with both a cash offer and a traditional listing option, so you know which path fits your goals best. 

How Salvato & Co. Does Things Differently 

We're a local, veteran-owned real estate company that puts honesty first. Here's what you can expect: 

• Two selling options: We offer both cash offers and full-service listings. 

• Straightforward communication: We explain your options in plain language. 

• Local knowledge: We live and work in the same Maryland communities as you. 

• No-pressure process: We're here to help you find the right fit—not to push you into a deal. 

When Selling for Cash Makes Sense 

A cash sale can be the best move when: 

• The home needs major repairs 

• You need to sell fast (in as little as 7 days) 

• You're dealing with probate, divorce, or relocation 

• You want to avoid agents, showings, and uncertainty 

That said, if your home is in great shape and you aren’t in a rush, you might get more by listing. We’ll walk you through both scenarios. 

Know Who You're Working With 

The phrase "we buy houses" isn’t a scam. But you should always know who you’re dealing with, and why the offer looks the way it does. 

At Salvato & Co., we believe in being upfront, fair, and respectful. Whether you want to sell fast, avoid repairs, or simply explore your options, we’re here to guide you with honesty and care. 

See what your home could sell for as-is or schedule a free call.