How do I verify a cash buyer is legitimate?

Ask for proof of funds (bank statement or letter from a financial institution), check that the buyer has a verifiable business address and reviews from real prior sellers, confirm they use a licensed title company or attorney for closing, and read the contract carefully — especially any clauses about assignment, inspection periods, and earnest money deposits.

What is proof of funds and what should it look like?

Proof of funds is documentation that a buyer has the money to close. It is typically a recent bank statement or a letter from a bank, credit union, or hard-money lender stating that funds are available. The document should be dated within 30 days, show the buyer's name, and show a balance equal to or greater than the offer.

Should I worry if a cash buyer wants to assign the contract?

Wholesalers commonly assign contracts to end buyers, and that is legal in Florida. The concern is when assignment is hidden from you. A clean wholesaler discloses assignment up front, puts real earnest money down, and closes within the promised timeline. Walk away if assignment is buried in fine print or the buyer cannot describe how it works.

What earnest money should a cash buyer put down?

In Florida, a reasonable earnest money deposit is typically 1 to 5 percent of the purchase price, held by a title company or attorney. Very low or zero earnest money is a red flag — it costs the buyer nothing to back out.

How long should the inspection or due-diligence period be?

Cash buyers commonly take 7 to 14 days for due diligence. Anything longer than 14 days for a standard residential property suggests the buyer is shopping the contract or stalling. A truly cash-ready buyer can complete due diligence quickly.

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How to Choose a Cash Buyer for Your Home

If you've started getting calls or postcards from cash buyers, you've probably noticed they all sound similar. "We buy houses, any condition, no commissions." The pitch is identical because the business model is identical — but the buyers are not. Some will close on time at the agreed price. Others will tie up your property for weeks and then renegotiate, or back out, or simply disappear. This article is the short version of how to tell them apart before you sign anything.

What "cash buyer" actually means

A real cash buyer is a person or company purchasing your house without a mortgage. They might use their own funds, partner funds, or a hard-money credit line, but they are not waiting on a lender's appraisal or underwriting. That's the speed advantage — and the risk, because the only thing protecting you is the contract and the earnest money deposit.

The 5 things to verify before signing anything

Proof of funds. A bank statement or letter from a financial institution, dated within 30 days, showing funds equal to or greater than the offer. If they say "we'll send it later," push for it now.
Earnest money deposit. A serious buyer puts 1 to 5 percent of the purchase price in escrow at a title company or attorney within 1–3 days of contract. Zero or token earnest money means the buyer has nothing to lose by walking away.
Closing through a licensed title company or attorney. Not the buyer's "in-house closing service." A neutral third party that holds funds, runs title, and records the deed is non-negotiable.
Reviews from prior sellers. Google reviews, BBB, or actual references. The buyer should be willing to give you names of recent sellers you can call.
A clear, written contract. No verbal-only "agreements." Read the assignment clause, the inspection period, and the contingencies.

Questions to ask every cash buyer

"Will you provide proof of funds today?"
"How much earnest money will be deposited, and where?"
"What title company or attorney will you use for closing?"
"Are you the end buyer, or might you assign the contract?"
"What's your typical timeline from contract to close?"
"Can I talk to two recent sellers?"

A legitimate buyer answers all of these without hesitation. If you get pushback on any of them, that's information.

Common pressure tactics and what they mean

If a buyer says "this offer expires in 24 hours" — that's a sales tactic, not a reflection of market reality. A serious cash offer is usually good for a week or longer. The same applies to "I have another property today, decide now."

Another classic: the lowball offer with room to "negotiate up." Some buyers open low specifically so they can come up later and feel like a hero. The fix is simple — get two or three offers and let them compete.

Wholesalers vs. true end-buyers

A wholesaler is someone who gets a property under contract and then assigns that contract to a different end buyer for a fee. This is legal in Florida and not inherently bad — many wholesalers are good operators. The problem is hidden wholesaling. A clean operator tells you up front: "We may assign this contract, here is how it works, the closing date and price are still locked in." A bad actor hides it and uses your closing window to shop the deal, then comes back asking for more time.

What a clean deal looks like

Written offer with clear price and closing date
Proof of funds provided same day
Earnest money deposited at a title company within 72 hours
Inspection / due diligence period of 7–14 days
Closing within 14–30 days of contract
Title company or attorney handles funds and recording

The bottom line

Choosing a cash buyer is mostly about removing risk. The price you agree on only matters if the deal actually closes. Verify funds, lock in real earnest money, and use a neutral closing agent — and you've eliminated 90% of the ways a cash sale goes sideways.

Selling a house in Florida and want a straightforward cash offer with full transparency? Call OfferLink Home Buyers at 407-930-9801. We make cash offers across all 18 counties we serve, including Orange County, Polk County, and Brevard County.