What is the biggest red flag with cash buyers?

Refusing to provide proof of funds. A real cash buyer has documentation ready and shares it without hesitation. Stalling, vague promises, or 'we'll send it after the contract' usually means the buyer doesn't have the money and plans to find an end buyer using your contract.

What should a fair purchase contract include?

A clear price, a firm closing date, real earnest money, and plain language about who pays which closing costs. If a contract is vague, one-sided, or the buyer resists letting you have an attorney review it before signing, treat that as a reason to slow down.

How much earnest money should a serious cash buyer put down?

For Florida residential property, 1-5% of the purchase price held by a title company or attorney is common, though the exact amount is negotiable. Token amounts ($100, $500) or no earnest money at all mean the buyer has nothing to lose by backing out.

What does 'tying up' a property mean?

When a buyer signs a contract but has no real intention or ability to close, and uses the contract window (often 30-60 days) to stall while looking for financing or a way out. During that period the seller can't sell to anyone else. Long inspection periods and low or no earnest money are the classic setup for this.

What if the cash buyer pressures me to sign immediately?

Pressure to sign 'today' or 'before this offer expires' is a sales tactic, not a reflection of market reality. A serious cash offer is typically good for at least 5-7 days. You should always have time to compare offers, read the contract, and consult an attorney or trusted advisor before signing.

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Red Flags When Selling to a Cash Buyer

Most cash buyers are real businesses doing real deals. But the entry barrier is low, and the bad actors all use the same playbook. Here are the eight specific things that should make you stop and think before signing anything.

1. No proof of funds — or "we'll send it later"

A legitimate cash buyer has proof of funds ready: a bank statement dated within 30 days, or a letter from their bank or hard-money lender showing available funds equal to the offer. If the buyer stalls, talks around it, or promises to send it after the contract is signed — they probably don't have the money and are planning to use your contract to find someone who does.

2. Token earnest money

Earnest money is the buyer's skin in the game. On a Florida residential sale, 1–5% of the purchase price held by a title company is common, though the amount is negotiable. If the contract specifies $100, $500, or any "token" amount, the buyer can walk away at no cost. That's not a buyer — that's an option.

3. Long inspection or due-diligence periods

A real cash buyer can typically complete due diligence in 7–14 days. Inspection periods of 30, 45, or 60 days are a giveaway that the buyer isn't actually ready to close and is using that window to stall. You're locked up while they figure out their next move.

4. A contract full of vague or one-sided language

A legitimate buyer's contract clearly spells out the price, the closing date, who's responsible for which costs, and what happens if either side doesn't perform. Vague language, one-sided escape clauses that only protect the buyer, or a contract the buyer is reluctant to let you review with an attorney before signing are all signs to slow down. Read every clause. If something isn't clear, ask directly, and don't sign until you understand it.

5. Pressure to sign immediately

"This offer expires at midnight." "I have to know today." "If you don't sign now, I move on." These are sales tactics, not market signals. A serious cash offer is typically good for at least 5–7 days. Anyone pressuring you to sign on the spot is hoping you won't have time to compare offers or read the fine print.

6. Lowball with planned negotiation-up

Some buyers deliberately open low so they can come up later and feel like they're "working with you." The fix is simple: get two or three competing offers. The market sorts this out fast.

7. No physical address, only a mobile number

Legitimate buyers have business addresses, business phones, and an online presence you can verify. If everything you can find about the buyer is a cell phone and a website registered last month — that's a flag. Look for Google reviews, BBB profile, and references from prior sellers.

8. Closing through "our in-house closing service"

Closing should go through a neutral third party — a licensed Florida title company or real estate attorney — not the buyer's own in-house operation. A neutral closer holds the earnest money, runs title, distributes funds, and records the deed. That's the protection layer.

What to do if you spot a red flag

Walk away. There are plenty of cash buyers in Florida. Losing one offer that smells wrong is much cheaper than losing 30 days of your selling window to a buyer who never had the money.

Bottom line

The price you agree on doesn't matter if the buyer can't or won't close. Verify funds, require real earnest money, use a neutral closing agent, and never let pressure tactics rush you. Those four things eliminate almost every way a cash sale gets stolen. See our post on how to choose a cash buyer for the full verification checklist to run before you sign. But a bad buyer isn't the only way a sale falls apart — see our post on avoiding a failed house sale for the title, HOA, and permit issues that can sink a deal even with a legitimate buyer.

Want a cash offer with full transparency, real earnest money, and closing through a licensed title company? Call OfferLink at 407-584-9111. We buy across Florida, and we explain everything in writing before you sign, whether that's in Seminole County, Osceola County, or Lake County.