The short answer
No, the model itself is legal and common. But the sign on the pole is not a company, and some
operators run it badly. The scam risk is in the details: retraded offers, hidden assignments, and
pressure to sign the same day.
We buy houses for cash in Baltimore, so treat this page accordingly. The point is not to defend
the industry. Plenty of it deserves the reputation. The point is to hand you the specific checks
that separate a real buyer from a bad one, and then to invite you to run every one of them on us.
How the model actually works
A cash buyer purchases below retail, takes on the repairs and the risk, and either resells or
rents the property. That is the whole business. It is not charity and it is not a trick. Where it
goes wrong is that three very different operations all advertise with the same four words.
- An actual buyer. Has capital, buys in their own name, closes at a title company, owns the house afterward.
- A wholesaler. Puts your house under contract, then sells that contract to somebody else for a markup. They may never own it. This is legal in Maryland, and it is regulated.
- A lead generator. Buys nothing. Collects your address and phone number and sells it to a list of investors, which is why you then get twelve calls.
None of those are automatically a scam. But you deserve to know which one you are talking to
before you sign anything.
Here is exactly what we do, step by step, so you can see which category we sit
in.
The red flags that matter
An offer made sight unseen, then cut later
A number produced before anyone has seen the property is a hook, not an offer. The pattern is
predictable: a high figure gets you to sign, then a walkthrough “discovers” problems and the price
drops. Watch whether a buyer’s number only ever moves in one direction after you commit.
Pressure to sign today
Real offers survive a night’s sleep. Any offer that expires in an hour is engineered to stop
you comparing it to another one. There is no legitimate reason a funded buyer cannot wait until
Monday.
No proof of funds
Ask for a bank statement or a lender letter showing the money exists. A buyer who can close in
a week can produce this in an afternoon. If they deflect, they are probably planning to find the
money after you sign, which means your closing date is a guess.
An assignment they did not disclose
If a buyer intends to sell your contract to someone else, Maryland law now says you have to be
told. Under Real Property section 10-715, a wholesale buyer must disclose
in writing, before you enter into the contract, that they may assign it. If they fail to do that
and then assign it anyway, you can rescind without penalty any time before closing. Ask the
question directly and get the answer in writing.
Non refundable money moving the wrong way
Deposits flow from buyer to seller, held by a neutral party. If you are being asked to pay a
fee, a deposit, or a retainer to sell your own house, stop. In Maryland it is worse than a bad
deal when foreclosure is involved: the
Protection of Homeowners in Foreclosure Act restricts what foreclosure
consultants can charge and when, and the state Commissioner of Financial Regulation has
published guidance on advance fees for foreclosure related services.
Paperwork that transfers more than you meant
Be very careful about signing a deed, a power of attorney, or a lease back arrangement early in
a conversation. You are selling a house, which happens at settlement. Nothing needs to change
hands before then.
Blanks in the contract
Never sign a document with an empty line in it. Not the price, not the closing date, not the
buyer’s name.
How to verify any buyer, including us
- Get the legal entity name, not the brand on the sign, and look it up in the state business records.
- Ask for proof of funds in writing.
- Ask, in writing, whether they intend to assign the contract. The disclosure is required. Their answer tells you who is actually buying.
- Check licenses. If anyone claims to be an agent or broker, verify it through the Maryland Real Estate Commission. Note that a buyer purchasing for their own account does not need a license, so the absence of one is not itself a red flag.
- Insist on settlement at a title company you can call independently. A licensee cannot require you to use a specific settlement company, per the Maryland Real Estate Commission.
- Read the settlement statement before you sign it, and ask about any line you do not recognize. We break down what should and should not appear on it.
- Look them up in the land records. A buyer who has actually bought houses in Baltimore has recorded deeds with their name on them.
- Search their reviews and their complaints. Then file one yourself if you need to, with the Maryland Attorney General’s Consumer Protection Division.
Run that list on us. We would rather lose a deal to a seller who checked than win one from a
seller who did not. Here is who we are, and
here are real Baltimore sales with the details attached.
What a straight offer looks like
It is in writing. It names the buying entity. It states the price, the closing date, and the
deposit. It says plainly whether the contract can be assigned. It does not expire tonight, and it
does not change after a walkthrough unless something genuinely new was found and you agree to it.
It closes at a title company. That is the whole standard.
If you want a number without talking to anybody first,
REBA gives you a free valuation in minutes with no obligation. Then go read
what cash buyers actually pay and why, compare it against
what an iBuyer would do, understand
what selling as is really commits you to, and decide whether you
want representation for the transaction. The wider
guide is at selling a Baltimore house fast.
Before you act on this
This page is general information about how these processes work in Maryland. It is not
legal, tax, or financial advice, and your situation may turn on details this page cannot
know. Talk to a Maryland attorney or a licensed tax professional before you make a decision
you cannot reverse. If you are facing foreclosure, you can also speak with a HUD approved
housing counselor at no cost.
Questions people ask
Are we buy houses companies legitimate?
The business model is legal and ordinary. Buying below retail, taking the repair risk, and reselling is how the industry works. What varies is the operator. Some buy with their own money and close on time. Others resell your contract or never had funds at all.
What is wholesaling, and is it legal in Maryland?
A wholesaler puts your house under contract and sells that contract to another buyer for a markup. It is legal in Maryland, but Real Property section 10-715 requires written disclosure that the contract may be assigned. If they do not disclose and assign anyway, you can rescind before closing.
How do I know a cash buyer actually has the money?
Ask for proof of funds, meaning a bank statement or lender letter, in writing. A genuinely funded buyer produces it the same day. Also look them up in the Baltimore land records. A buyer who has really been buying houses has recorded deeds carrying their name.
Should I ever pay a fee to sell my house fast?
No. Deposits move from buyer to seller and are held by a neutral party. If anyone asks you to pay them to sell your own home, walk. Where foreclosure is involved, Maryland law restricts what foreclosure consultants can charge and when they can charge it.
Where do I report a bad home buying company in Maryland?
The Maryland Attorney General's Consumer Protection Division takes complaints from homeowners. For foreclosure related services and advance fee problems, the Maryland Commissioner of Financial Regulation is the relevant office. Keep every document, text and voicemail. Written records make a complaint far easier to act on.