If you’re trying to sell your home in Washington, D.C., getting a fast cash offer might sound like a dream come true. No repairs. No agents. No waiting. Just a straightforward deal and a clean break. However, not all cash offers are legitimate.
Scams in the real estate world have become more sophisticated. D.C. homeowners are no exception to the growing trend. Before you start entertaining cash offers, you need to protect yourself from buyers who don’t actually have the funds or the intention to follow through.
Know how to tell the difference. Here’s how to make sure you’re dealing with a reputable and ethical business that advertises “We buy houses in Washington, D.C.”
1. There are No Upfront Fees
One of the most common scam tactics is asking you to pay something before the sale is even close to closing. This might come in the form of:
- Processing fees
- “Application” costs
- Wire transfers to “secure the offer”
No legitimate cash buyer will ever ask you to pay up front. In fact, most buyers cover the closing costs or negotiate those fees into the final sale price in an honest transaction. If someone’s asking you for money before you’ve signed anything official, it’s a major red flag.
2. The Buyer Can Show Proof of Funds
A real cash buyer should have real cash. You have every right to ask for a proof-of-funds letter before moving forward. This letter could come from a bank, financial institution, or private lender and should clearly prove that the buyer has the funds to cover the purchase.
Beware if the buyer avoids the question, delays providing proof, or sends something that looks like a vague spreadsheet or unverifiable account statement. No serious buyer would hesitate to back up their offer with documentation.
3. The Offer Involves Written Contracts
Verbal offers or overly vague email “deals” are often a cover for bad intentions. A reputable buyer will provide a written agreement that clearly outlines:
- The purchase price
- The timeline
- Any contingencies (such as title review)
- Who pays which fees
The contract should be clear and concise, leaving no room for ambiguity. If the language feels confusing or the buyer pressures you to sign quickly without reading, pause. Take the time to have someone review it with you, preferably a title company or real estate attorney. When you feel confident about it, ensure all parties involved sign it.
4. The Buyer Uses a Local Title Company
In Washington, D.C., cash transactions still go through a title company to ensure the legal transfer of ownership. A legitimate buyer will have no problem working with a known, reputable title company, ideally one with experience in D.C. property laws.
If your buyer says they handle everything themselves or don’t need a third party, that’s a problem. Skipping this step could put you at risk for fraudulent paperwork or an invalid transfer.
Bonus tip: Research the title company, especially if you’re unfamiliar with them. Call the company directly, check reviews, and verify their licenses.
5. The Buyer Doesn’t Disappear or Get “Too Busy”
Another scam strategy is going radio silent.
You receive an exciting offer. Then, nothing. No communication. No updates. Or worse, they start changing the terms or pushing out the closing date with strange excuses.
While delays happen in real estate, consistent ghosting or odd behavior usually signals that the buyer never intended to close in the first place. A legitimate buyer will stay in touch, meet deadlines, and provide clear updates throughout the process.
6. The Offer is Realistic
It’s tempting to jump at a high-dollar cash offer, especially if you’re stressed or behind on payments. Take caution. An offer significantly above what your home is worth might be bait to reel you in.
Dishonest buyers sometimes use inflated offers to win your attention. Once you emotionally commit or turn down other buyers, they lower the price or add unreasonable demands.
Trust your instincts and compare the offer to local D.C. property values. It’s a good idea to get a quick valuation from a licensed agent, appraiser, or online source to see if the offer aligns with your home’s condition and location.
How to Protect Yourself
While not every cash offer is a scam, it’s wise to approach each one with a bit of healthy skepticism. Here’s how you can safeguard your sale:
- Ask for proof of funds early in the process.
- Always insist on a written contract.
- Use a licensed title company for closing.
- Verify the buyer’s reputation online or with local professionals.
You’re not obligated to continue if you feel something isn’t right. You can walk away at any time before signing.
What Makes a Cash Offer Legitimate?
A legitimate cash offer usually comes from one of these three types of buyers:
- A professional home-buying company with a track record in Washington, D.C.
- An investor with proof of funds and a clear purpose (rental, flip, etc.)
- An individual buyer who is financially qualified and backed by a trustworthy title company
These buyers are upfront, transparent, and ready to move quickly, without gimmicks or pressure. They also know how to navigate D.C.’s unique zoning laws, taxes, and property issues, which helps ensure your deal won’t fall apart halfway through.
It’s OK to Be Cautious
Selling your D.C. home for cash can be a great move, especially if you want to avoid repairs, commissions, or long wait times. But don’t let the promise of fast money blind you to the risks.
Trust, but verify. Ask questions. Do your research. And remember, the right buyer won’t rush you or hide behind vague promises.
If you’re unsure, consult a professional. A reputable cash home buyer will walk you through every step without pressure or confusion, and leave you feeling confident about the decision to sell.