Cash Home Buyer Checklist:
10 Questions to Ask Before
Accepting Any Offer

Why Vetting Your Cash Buyer Matters

The Long Beach cash buyer market has grown significantly. Alongside legitimate buyers like Jay Buys Houses, there are national brands that use call centers and algorithms, wholesale operators who assign contracts to third parties, and iBuyers with hidden fee structures. This checklist helps you ask the right questions before signing anything.

The 10 Questions Checklist

1. "Are you buying this property yourself, or assigning the contract?"

This is the most important question. Wholesalers sign purchase agreements with sellers and then sell ("assign") those contracts to other investors for a fee. If the deal closes at all, it may close with a different buyer than the one who made you the offer — and sometimes they don't close at all. Ask directly: "Do you fund this purchase with your own money, or do you assign the contract?"

Jay Buys Houses purchases with our own funds. We never wholesale or assign contracts.

2. "Can you show me how you calculated this offer?"

Any legitimate buyer can explain their offer: the comparable sales they used for ARV, their repair estimate, holding costs, and margin. If a buyer says "that's just our formula" or "we can't disclose our calculations," that's a significant red flag. Transparency in the offer formula is a core indicator of legitimacy.

Jay Buys Houses opens a laptop on every walkthrough and shows you every number.

3. "Can I see proof of funds?"

Ask for a current bank statement or proof-of-funds letter showing they actually have the cash to close. A genuine cash buyer will provide this without hesitation. A wholesaler or cash buyer relying on a line of credit may be evasive or provide inadequate documentation.

4. "What is your track record in Long Beach specifically?"

National brands may have purchased thousands of homes — but in how many Long Beach neighborhoods? A local buyer who has purchased dozens of properties in your specific area has better comp data and renovation cost knowledge, which translates to more accurate (and potentially higher) offers.

5. "Will there be any price changes between the offer and closing?"

Some buyers use a bait-and-switch: high initial offer, then "we found issues during inspection" renegotiation just before closing when you're emotionally committed. Ask explicitly: "Does your offer change after the inspection? What would trigger a price reduction?"

Jay Buys Houses front-loads all cost assessment before making an offer. Our signed offer is the number that closes.

6. "Who pays closing costs?"

Some cash buyers advertise "no commissions" but charge escrow fees or other "administrative" fees. In a genuine cash purchase, the buyer should pay all standard closing costs (escrow, title, transfer taxes). Ask for a net sheet showing exactly what you'll receive.

7. "What is your closing timeline, and what can delay it?"

A real cash buyer has a specific, reliable timeline. "We can close in 7 days" should come with specifics: "assuming clear title and both parties available to sign." Ask what could delay the close and listen for vague answers.

8. "Do you have references from recent Long Beach sellers I can contact?"

Any established buyer should be able to provide references or point you to verifiable testimonials. Testimonials on their own website aren't independently verifiable — Google reviews or direct references from past sellers are more reliable.

9. "Are you affiliated with a national brand or a local company?"

National brands (We Buy Ugly Houses/HomeVestors, Opendoor, Offerpad, etc.) use different business models than local buyers. Neither is inherently better, but knowing which type of buyer you're dealing with helps you understand the process and potential risks.

10. "What happens if you can't close on time?"

Ask about their earnest money deposit (a real buyer puts up a meaningful EMD), what liquidated damages apply if they fail to close, and what recourse you have. A buyer confident in their ability to close will provide a fair EMD and accept meaningful consequences for non-performance.

Red Flags to Watch For

• No physical office or local presence — just a website and a call center
• Pressure to sign quickly without time to think or consult an attorney
• Offer comes in dramatically higher than others without explanation — may be wholesaling bait
• Contract has no specific closing date or has very long "inspection periods"
• Assignment clause in the purchase agreement allowing them to transfer the contract
• No earnest money deposit or nominal $100 EMD (no skin in the game)
• Request to sign over power of attorney or sign documents you don't understand