You've seen the signs. They are stapled to telephone poles or plastered on highway overpasses with neon lettering that screams "WE BUY HOUSES." Maybe you've received a postcard in the mail addressed to "Current Resident" offering a "done deal" in forty-eight hours. It feels a little sketchy, right? Like something out of a late-night infomercial where the stakes are your biggest financial asset.
Done deal home buyers are basically real estate investors who bypass the whole "put it on the market and pray" circus. They aren't looking for a home to live in. They're looking for an asset to flip or a rental to add to a portfolio.
Selling a house is usually a nightmare. It involves scrubbing baseboards with a toothbrush and hiding your cat's litter box every time a stranger wants a tour. Then you wait. You wait for the buyer's mortgage to clear, for the inspection report to come back with a list of "must-fix" items, and for the appraisal to actually match the price. Sometimes the deal just falls apart.
Cash buyers skip that.
How Done Deal Home Buyers Actually Operate
If you're expecting a tailored suit and a briefcase, you're looking in the wrong place. Most of these operations are lean. Some are local "mom and pop" investors; others are massive "iBuyers" like Opendoor or Offerpad (though the iBuyer model has taken a massive hit recently, with Zillow famously exiting the space after losing hundreds of millions).
The process is almost jarringly fast. You call. They look. They offer. You sign.
They use something called the "70% Rule." It's not a law, but it's a standard benchmark in the industry. Basically, an investor will usually offer roughly 70% of the After Repair Value (ARV) minus the costs of the repairs needed. If your house could be worth $300,000 all fixed up, but it needs $50,000 in work, they aren't going to give you $250,000. They’re going to give you $160,000.
That $90,000 difference? That’s their profit margin, their holding costs, their taxes, and their insurance.
It sounds like a lot of money to leave on the table. It is. But for some people, it's the only way out.
Why People Actually Use Them
Most people don't sell to a cash buyer because they want to. They do it because they have to.
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Think about probate. You inherit a house three states away that's filled with forty years of "treasures" and smells like old newspapers. You can’t afford the property taxes. You can't fly back and forth to manage a renovation. A cash buyer becomes a literal lifesaver because they take it "as-is." You don't even have to sweep the floor.
Then there’s divorce. Or pre-foreclosure. When the bank is breathing down your neck, a 60-day closing period on the MLS (Multiple Listing Service) is a luxury you don't have.
I’ve seen situations where a house had such severe foundation issues that no traditional bank would ever issue a mortgage on it. In those cases, the house is effectively "un-sellable" to a normal family. You need a buyer with a big pile of cash who isn't scared of a cracked slab.
The Ethics and the Red Flags
Let's be real: the industry has some sharks.
There are "wholesalers" who act like buyers but don't actually have any money. They get you under contract for $200,000 and then spend the next two weeks frantically trying to "assign" that contract to a real investor for $210,000. If they can't find a real buyer, they use a "weasle clause" in the contract to back out at the last second.
You’re left standing at the altar with a house that’s still for sale and a month of wasted time.
How to spot a fake
- The Inspection Period is Too Long: If they ask for a 21-day "inspection" period, they aren't inspecting the roof. They are trying to find a buyer to sell your contract to.
- No Earnest Money: A real professional will put down a non-refundable deposit. If they won't put $2,000 or $5,000 into an escrow account, walk away.
- Proof of Funds: Ask for a bank statement. Not a "letter of intent" or a "pre-approval." A redacted bank statement showing they actually have the cash to close.
Honestly, the best done deal home buyers are the ones who show up, look at the property for twenty minutes, and tell you exactly what they can pay without the fluff. They don't try to be your friend. They are making a business transaction.
The Math Behind the Offer
Let’s talk about the "convenience fee." Because that’s really what the price drop is.
When you sell a house the traditional way, you pay:
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- Real estate agent commissions (usually 5% to 6%)
- Closing costs (1% to 3%)
- Seller concessions (the buyer wants $5k for a new roof)
- Holding costs (mortgage, insurance, and utilities paid while the house sits for 3-6 months)
On a $400,000 house, those "hidden" costs can easily eat up $40,000 or $50,000.
A cash buyer offer of $330,000 might look insulting next to a $400,000 market value. But when you realize you won't pay commissions, you won't pay for repairs, and you'll stop paying the mortgage in ten days, the gap starts to shrink. It’s still a loss, but it’s a calculated one.
Navigating the "As-Is" Clause
The term "As-Is" is the holy grail of these transactions.
In a standard sale, "As-Is" usually means the seller won't fix anything, but the buyer can still back out if the inspection is scary. In the world of cash investors, it's much more literal.
You can leave the old couch. You can leave the broken fridge. You can leave the pile of tires in the backyard. For someone dealing with a hoarding situation or a sudden death in the family, this "trash-and-all" service is often more valuable than the cash itself.
However, "As-Is" does not mean "non-disclosure." You still have a legal obligation to disclose known defects like lead paint or a history of flooding. Don't think a cash sale lets you off the hook for fraud.
The Rise of the Professional "Fix and Flip"
Reality TV has done a number on this industry. Shows like Flip or Flop made it look like you can buy a house, paint it gray, and make $100,000 in a weekend.
Because of this, the market is flooded with "newbies" who took a $5,000 weekend seminar and think they are moguls. These are the people you want to avoid. They often overpay for houses, run out of money halfway through the renovation, and try to lowball you mid-escrow to save their own margins.
Experienced done deal home buyers have a track record. They have a "standard operating procedure." They use the same title company for every deal. They have a crew on standby.
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Check their reviews. Check the Better Business Bureau. Look at their recently closed transactions in public records. If they haven't bought anything in six months, they might be struggling with the current interest rate environment.
Current Market Reality
In 2026, the market is weird. Interest rates have stabilized somewhat, but inventory remains low. This means cash buyers are becoming more aggressive. They are competing with "regular" buyers who are using programs like "Cash Offer" services (where a bank buys the house for the buyer to make the offer stronger).
The distinction is blurring.
How to Prepare for a Cash Offer
Even if you're in a hurry, don't be reckless.
First, get your own appraisal or a Comparative Market Analysis (CMA) from a local realtor. You need to know what the "top of the market" price is so you can quantify exactly how much you are "paying" for the convenience of a cash sale.
Second, don't sign the first contract you get. Get three offers. There are enough investors out there that you can make them compete.
Third, read the contract. It’s usually only two or three pages. Look for the "contingencies." A true "done deal" should have almost zero contingencies. If the contract says "subject to partner approval" or "subject to financing," it’s not a cash deal. It’s a trick.
Actionable Steps for Sellers
- Clear the Title: If you have liens, unpaid taxes, or weird boundary disputes, tell the buyer upfront. They can usually help solve these, but surprises at the closing table kill deals.
- Skip the Repairs: Don't spend $2,000 on new carpet thinking it will add $10,000 to a cash offer. It won't. The investor is likely going to rip it out anyway to put in LVP flooring that matches their brand.
- Verify the HUD-1: Before you sign the final papers, look at the settlement statement (HUD-1). Ensure there are no "junk fees" snuck in at the end.
- Timeline is Everything: Specify your move-out date. Some investors will allow a "post-occupancy" agreement where you get your money but stay in the house for two weeks to pack.
The most important thing to remember is that you are in control. Until you sign that deed over at the title company, the house is yours. Don't let a high-pressure "acquisition manager" make you feel like you're doing them a favor. They are the ones making the profit.
Selling to a cash buyer isn't for everyone. If you have a beautiful, move-in ready home and three months to wait, go the traditional route. You'll make more money. But if the house is a burden, if the clock is ticking, or if the walls are literally crumbling, a cash investor is a valid, logical business exit.
Just keep your eyes open and your wallet closed until the check clears.
To start the process, your first move should be searching for local investment groups rather than national franchises. Local players understand the specific street-by-street value of your neighborhood better than a spreadsheet in an office three time zones away. Reach out to at least three, ask for "proof of funds" immediately, and never pay an upfront "application fee" or "inspection fee." A real buyer pays you; you never pay them.