We Buy Houses Miami: 7 Scams to Avoid & How to Verify a Cash Buyer

Quick answer: Seven red flags that indicate a "we buy houses" company is a scam: upfront fees, no proof of funds, high-pressure tactics, vague contracts, wholesale assignment clauses, "subject-to" deed transfers, and deeds signed under duress. Florida Statute §501.1377 (Home Equity Theft Prevention Act) offers specific protections for Miami homeowners.

If you've driven through Miami lately, you've seen the signs: "We Buy Houses Cash" on telephone poles, bandit signs at intersections, flyers under windshield wipers. Postcards in the mail, online ads. The "we buy houses" market is crowded, and while many cash buyers are legitimate professionals, others are looking to take advantage of motivated sellers. Here's how to tell the difference.

Why the Industry Exists (and Why It Attracts Bad Actors)

Traditional sales don't work for everyone. Foreclosure timelines, job relocation, major repairs, inherited properties, tenant problems – cash buyers fill a real gap by offering speed and certainty the MLS can't match. For the right seller in the right situation, that service is worth accepting a price below retail.

Unfortunately, the low barrier to entry attracts scammers. You don't need a real estate license to buy a house in Florida. Anyone with a printer can put up a bandit sign. The industry polices itself imperfectly.

7 Red Flags to Walk Away From

1. Upfront fees

Legitimate buyers don't charge you to make an offer. Any "application fee," "processing fee," "evaluation fee," or "earnest money deposit to you" request is a scam. Real buyers make money by buying, fixing, and reselling – not by collecting fees from sellers.

2. No proof of funds

Real cash buyers can show you a bank statement, a letter from their bank, or verification from their escrow agent proving they have the funds to close. "I'll get that to you later" or "my investor handles that" are evasions. Proof of funds is standard – if they can't produce it within 24 hours, they probably don't have the money.

3. High-pressure sales tactics

"This offer expires in two hours." "Sign today or the deal's off." "Don't talk to a lawyer." These are manipulation tactics, not business. Reputable buyers give you time to consult family or advisors. Urgency is often manufactured.

4. Vague or blank contracts

Your contract should clearly state: the buyer (the actual entity), the purchase price, the closing date, the title company, what you pay, what they pay, and any contingencies. Blank spaces, handwritten insertions, or "standard clauses" you don't understand are red flags. Never sign without reading every word.

5. Assignment-of-contract clauses (the wholesaler trap)

A wholesaler signs a contract with you at a low price, then "assigns" that contract to an actual cash buyer for more money, pocketing the spread. This isn't illegal in Florida, but the wholesaler isn't the one actually buying your house – and if they can't find a real buyer, the deal falls apart and your property has been tied up for 30–60 days. Look for "and/or assigns" language in the contract and ask directly: "Are you the buyer, or are you assigning this?"

6. "Subject-to" deed transfers

In a subject-to transaction, you transfer the deed to the buyer but leave your existing mortgage in your name. The buyer makes the payments – allegedly. If they stop, you're still on the hook with the lender, and the foreclosure goes on your credit even though you don't own the house anymore. Reputable buyers pay off the mortgage at closing. Subject-to deals aren't always scams but they're advanced strategies that routinely go wrong for sellers.

7. Deeds signed under pressure (Florida Home Equity Theft Prevention Act)

Florida Statute §501.1377 specifically protects homeowners in foreclosure from equity-skimming schemes. If someone approaches you during foreclosure and asks you to sign over the deed with vague promises to "help you keep the house," "lease it back to you," or "let you buy it back later" – stop. The statute gives you a 5-business-day right to cancel certain foreclosure-rescue transactions. Consult an attorney before signing anything during foreclosure.

What Legitimate Buyers Do

• Explain the offer math. We show the comparable sales we used and the assumptions behind the number.
• Provide proof of funds on request within 24 hours.
• Use reputable title companies – never cash-at-the-kitchen-table closings.
• Give you time to review the contract, consult a lawyer, talk to family.
• Are accountable locally – verifiable business address, BBB profile, Google Business Profile, Florida Division of Corporations filing.
• Pay off your mortgage at closing – the lender gets paid in full, the deed transfers clean.

5 Questions to Ask Any Cash Buyer

1. "Can you show me proof of funds?" – should arrive within 24 hours.
2. "Are you the actual buyer or are you assigning this contract?" – if assigning, ask who the end buyer will be.
3. "What title company will we use?" – should be a recognized Florida title insurer (Old Republic, Fidelity National, First American, etc.).
4. "How many properties have you closed in Miami-Dade or Broward?" – a real local buyer will have specific recent deals.
5. "Can I have 48 hours to review the contract with an attorney?" – reputable buyers say yes immediately.

How to Verify a Miami Cash Buyer

• Florida Division of Corporations – search search.sunbiz.org for the company's active registration.
• BBB profile – look for the physical Miami-Dade address and customer review history.
• Google Business Profile – verified local businesses show reviews over time, not just a handful of recent 5-stars.
• Miami-Dade property records – search miamidade.gov/propertysearch for prior purchases under their entity name.
• Florida Department of State records – does the business actually exist as a legitimate Florida LLC or corporation?

Trust Your Instincts

If something feels off, it probably is. Take your time. Ask for references. Get a second opinion. You deserve full confidence in a decision this big. A legitimate buyer will wait. A scammer will push.

Frequently Asked Questions

How do I know if a "we buy houses" company in Miami is legitimate?

Check their Florida Division of Corporations registration (sunbiz.org), BBB profile, Google reviews over time, and Miami-Dade property records for prior purchases. Ask for proof of funds, confirmation they're the actual buyer (not a wholesaler), and time to review the contract. Legitimate buyers pass all of these easily.

Should cash home buyers charge upfront fees?

No. Never. Any request for an application fee, processing fee, evaluation fee, or "earnest money to the buyer" is a scam. Real buyers make money on the purchase and resale, not from fees charged to sellers.

What is proof of funds and how do I verify it?

Proof of funds is documentation showing the buyer has money to close – typically a bank statement, bank letter, or escrow agent verification. To verify, call the bank or escrow agent listed directly. Letters can be forged, so a live confirmation call matters.

Is a wholesaler the same as a cash buyer?

No. A wholesaler signs a contract with you at one price, then assigns that contract to an actual buyer for more, pocketing the spread. If they can't find an end buyer, the deal collapses. Wholesaling isn't illegal in Florida, but it's slower and riskier than selling to a real cash buyer. Always ask: "Are you the actual buyer or assigning this contract?"

What Florida laws protect homeowners from real estate scams?

Florida Statute §501.1377 (Home Equity Theft Prevention Act) protects homeowners in foreclosure from equity-skimming. Florida's Deceptive and Unfair Trade Practices Act (§501.201) applies broadly to misleading sales tactics. The Florida Attorney General's office investigates consumer complaints. For foreclosure-rescue transactions specifically, you have a 5-business-day right to cancel.