Is "We Buy Houses" Legit? How to Vet a Cash Buyer in Utah (Checklist)

Settled & Sold Home Buyers · Utah seller guide

"We buy houses" signs and ads are everywhere in Utah. Some are established local investors. Some are one-person operations learning as they go. Some are marketing companies that sell your information to others. Most are legitimate businesses, but quality varies a lot. Here is how to tell the difference before you sign anything.

1. Find out who they actually are

• Legal name. Ask for the company's legal entity name, not just the brand. Many use trade names. For example, Settled & Sold Home Buyers is a trade name of McKean Family Holdings, LLC.
• Look them up. Utah's Division of Corporations and Commercial Code has a public business entity search where you can confirm an entity exists and is in good standing.
• Local presence. Do they know your area? Will the person you talk to be involved in buying your house?
• Licensing. Investors buying for themselves do not need a real estate license, but if someone says they are an agent, you can check the Utah Division of Real Estate's license lookup.

2. Ask whether they buy or assign

Some companies buy the house with their own money and close. Others sign a contract and then assign it to a different investor for a fee (wholesaling). Assignment is not automatically bad, but you should know about it up front. Ask directly: "Will you close on this house yourselves, or might you assign the contract?" The Utah Division of Real Estate has cautioned that some wholesaling business models can cross into activity that requires a license, so a straightforward answer matters. Read more in our post on wholesalers vs cash buyers.

3. Ask for proof of funds

A legitimate cash buyer can show a recent bank statement or a letter from a lender or capital source showing they can close. Some redact account numbers, which is fine. If they cannot or will not show anything, that is a warning sign, especially if they plan to close quickly.

4. Insist on a licensed title company

In Utah, real estate closings are typically handled by title and escrow companies, which are regulated. The title company holds the earnest money, checks the title, pays off your mortgage and liens, and sends you your money. Ask which title company they use, and feel free to call the title company to confirm they have worked with the buyer. You can also ask to use a title company you choose.

5. Read the contract carefully

Look for these terms:

• Price and who pays closing costs. Is the price net to you, or do costs come out of it?
• Earnest money. How much, when it is deposited, and when it becomes nonrefundable to the buyer.
• Inspection or due diligence period. How many days they have to back out, and for what reasons.
• Assignment clause. Words like "and/or assigns" after the buyer's name can mean they may transfer the contract. Utah's state-approved purchase contract form says the contract may not be assigned without the seller's written consent, except for certain transfers to the buyer's own entities, but investors often use their own contracts, so read the wording.
• Closing date. Is it firm? Who can extend it?
• What stays and goes. Can you leave belongings? Who removes them?

It is completely reasonable to have a real estate attorney review a contract before you sign it.

6. Ask how they got to the number

A good buyer can explain their after-repair value, repair estimate and costs. You do not have to agree, but you should understand it. If someone gives you a number over the phone without seeing the house, expect it to change after the walkthrough.

7. Watch for these red flags

• Pressure to sign on the spot or "today only" offers
• Any request for money from you, such as application or processing fees
• A very high verbal offer that drops sharply right before closing after a long inspection period
• Refusal to put terms in writing or to name a title company
• Asking you to deed the house to them outside of a title company closing
• For foreclosure situations, promises to "save your home" for a fee, or lease-back arrangements you do not fully understand
• Vague answers about who they are or who will buy the house

8. Check reviews carefully

Look for reviews on Google and other platforms, but read them critically. Look for detail and specifics, and be skeptical of a wall of vague five-star reviews. A newer company may have few reviews; that alone is not a red flag if everything else checks out. Ask for references from past sellers or the title company.

9. Get more than one offer

Comparing two or three written offers is the easiest way to know whether a number is fair. Also get a sense of what listing might net from a local agent. Then decide based on price, certainty, timing and how comfortable you feel with the buyer.

A printable checklist

1. Legal entity name confirmed with the state
2. Buy-and-close vs assignment answered in writing
3. Proof of funds received
4. Licensed title company named and confirmed
5. Earnest money amount and deadlines clear
6. Inspection period and exit terms clear
7. Closing costs spelled out
8. No fees charged to you
9. Offer math explained
10. At least one comparison offer or agent estimate

The bottom line

"We buy houses" can be a great option or a frustrating one, depending on who you work with. A few direct questions, a look at the contract and a licensed title company protect you either way.

General information only, not legal, tax or financial advice. Laws and programs change; talk to a Utah attorney, CPA or HUD-approved housing counselor about your situation.