Are “We Buy Houses” Companies a Scam? A Washington Homeowner’s Guide

If you have ever driven or ridden around in the United States, you are probably familiar with the signs: “We Buy Houses for Cash!” or “Sell Your Home Fast!” Maybe you’ve even received a postcard or text message offering to purchase your home quickly, with no repairs needed. Too good to be true, right?

These companies — often referred to as “We Buy Houses” companies — are everywhere. And if you’re a homeowner facing financial stress, relocation, divorce, or costly repairs, their promises might sound like the perfect solution. For instance, Nine8 Redevelopment (the business whose blog you are currently reading) is one of these companies. How are you to know who is legit and who is a scam? Who can you trust?

The truth isn’t simply “trust this company” or “this company is a scam.” While there are legitimate companies doing honest business, there are also bad actors who prey on vulnerable homeowners. Let’s learn a few ways to tell the difference.

How “We Buy Houses” Companies Work

At their core, “We Buy Houses” companies are real estate investors. They purchase properties directly from homeowners, often with cash, and usually in as-is condition. The appeal is obvious:

• No repairs required
• Fast closings (sometimes in as little as a week)
• Flexible timelines that can work around your move-out date

Once purchased, the company might renovate the home and resell it for a profit, keep it as a rental, or wholesale the contract to another investor.

On paper, this can be a win-win — you get speed and convenience, they get an investment opportunity. But the experience you have depends heavily on who you’re working with and how much of the pie they intend to take.

Why People Worry About Scams

Many people like yourself are often skeptical of “We Buy Houses” companies because unfortunately some bad actors have given the industry a bad reputation. This includes larger, non-local companies who are less interested in your community as well as local companies that either lack integrity or have a low level of experience. Here are some effects for working with partners like these:

1. Unrealistic promises: Some companies advertise cash offers at top dollar, only to lower the price dramatically right before closing.
   
   
2. High-pressure tactics: Homeowners have reported feeling rushed into signing contracts without enough time to review terms, seek advice, or field offers.
   
   
3. Wholesaling without disclosure: Certain companies never intend to buy your home themselves. Instead, they find another buyer and profit off the difference, without telling you upfront.
   
   
4. Lack of transparency: If you can’t get a straight answer about who owns the company, how they calculate their offer, or where they’re based, that’s a red flag.

The Role of Local vs. National Companies

One of the biggest factors in whether your experience will be positive or negative is who you choose to work with. In Washington, there are two main types of buyers:

1. Local Home Buyers

• Owned and operated by people who live in the community
• Make decisions themselves without corporate approval
• Understand the local market, neighborhoods, and seasonal trends
• Often more flexible in terms of pricing, terms, and move-out schedules
• Many build their business on referrals and repeat clients, so reputation matters

2. National Brands with Local Branches

• Operate as franchises or licensees of a larger brand
• May follow strict corporate guidelines for making offers
• Often route leads to multiple investors or sales reps
• May have less connection to the local community
• Profits typically go to the parent company, not back into the local economy

Why Local Knowledge Matters in Washington

Property values are influenced by many factors including:

• Seasonal patterns that affect showings and curb appeal
• Neighborhood-specific trends (e.g., new transit projects, school districts, or tech company expansions)
• Local permitting rules and zoning laws
• Competition between traditional buyers and investors

A buyer who actually lives and works in the community will understand these nuances and that can lead to more accurate offers and smoother closings.

Red Flags to Watch Out For

Not all “We Buy Houses” companies are bad, but it’s important to spot warning signs before committing. If you encounter any of these, proceed with caution:

• They won’t put their offer in writing.
• They avoid answering direct questions about ownership.
• They push you to sign on the spot.
• They refuse to let you involve a lawyer, real estate agent, or trusted advisor.
• They drastically change the offer after an inspection without a valid reason.
• They have low or no earnest money deposited (typically should be at minimum 1% of purchase price)
• Earnest money is scheduled to be deposited late in the process (for example, after 2 weeks of feasibility, or right before closing in some instances)

Questions to Ask Before You Sell

To protect yourself, ask potential buyers:

1. Who owns your company and where are you based?
2. Will you be buying my home yourself or assigning it to another buyer?
3. How did you determine your offer price?
4. Can I see a copy of the purchase agreement before I decide?
5. Do you have references from past clients in Washington?

The answers can reveal a lot about whether the company is legitimate and whether they’ll treat you fairly.

The Benefits of a Local, Transparent Buyer

When working with a trustworthy, local home buyer, you can expect:

• Direct communication with the decision-makers
• Clear explanations of how your offer is calculated
• No hidden fees or commissions
• Flexible timelines tailored to your needs
• Significant earnest money deposited, no more than a week from signing the Purchase and Sale Agreement. 
• Honest advice, even if it means you shouldn’t sell to them

Some homeowners decide to sell directly for speed and simplicity. Others realize listing on the open market is a better choice. The right buyer will help you make that decision without pressure.

Are All “We Buy Houses” Companies Bad?

No. Many operate with integrity and help homeowners solve real problems. In fact, for situations like:

• Inherited properties
• Settling Probate
• Behind on Property taxes
• Non-paying Tenants
• Homes in serious disrepair
• Foreclosure prevention
• Divorce settlements
• Job relocations
  …a direct sale to a cash buyer can be a smart move.

The problem isn’t the business model, it’s the execution. Just as there are honest and dishonest real estate agents, there are good and bad home buyers.

How to Protect Yourself

Here are steps to ensure you’re working with a legitimate company:

• Do your research. Look for reviews, check the Washington Secretary of State business registry, and search for complaints.
• Compare offers. Even if you’re in a rush, get at least two or three bids to see if the numbers make sense.
• Read everything carefully. Never sign a contract you don’t understand.
• Consult a professional. Even a quick call to a real estate attorney can give you peace of mind.

A Washington Example: Why Some Homeowners Choose Local

In the Puget Sound region, local home buyers often work differently than national brands. Many build their business on word-of-mouth referrals, so they have an incentive to treat every client well. They may even recommend not selling if they think another route would be better for you.

In contrast, some national companies have sales quotas to meet. The focus is on volume, and the person you talk to might not be the one who ultimately buys your home. This can create confusion and make the process feel impersonal.

TL;DR: So, Are “We Buy Houses” Companies a Scam?

The answer is: not all of them, but some are — and the difference comes down to who you work with. Arm yourself with knowledge and go into any deal as informed as possible.

Considering Your Options? Here’s How Nine8 Approaches It

So here’s our pitch: If you’re thinking about selling your home quickly and want to avoid the uncertainty of working with a large, out-of-state “We Buy Houses” chain, Nine8 Redevelopment takes a different approach. We’re a truly local, Washington-grown company that values honest conversations over high-pressure tactics.

Our policy is simple: we walk you through all of your options, including ones that don’t involve selling to us, so you can make the decision that’s right for you. If our offer works for you, great! If it doesn’t, you’ll still leave the conversation knowing exactly where you stand and what other paths you can take.

Because we live and work in the same community we buy in, we care about fair offers, clear timelines, a smooth process from start to finish, and ultimately – our reputation. For you, that means no hidden fees, no last-minute changes, and no taking a larger piece of the pie than we need.

We’d love the chance to speak with you, hear your story, and see if we can play a part in closing out this chapter and helping you start the next.