You've decided to sell for cash. You've gotten a few offers — or you're about to. Now comes the part nobody talks about: how do you actually evaluate who to sell to?
Price isn't the only thing that matters. Here's how to make a smart decision.
Step 1: Verify They Can Actually Close
This is the most important question and most sellers never ask it.
Ask the buyer directly: "Are you buying with your own funds, or do you assign contracts?"
If they're a wholesaler, they'll find another buyer after you're under contract. That buyer may or may not close. If the assignment falls apart, you're back to square one — weeks later, sometimes in a worse position.
A legitimate cash buyer uses their own capital. They can close without finding another party. Ask for proof of funds if you want to be sure.
Step 2: Look at Their Track Record in Memphis
How many homes have they bought here? In which neighborhoods? Over how many years?
This isn't about bragging rights — it's about competence.
A buyer who has closed 400+ deals in Memphis has seen every situation and knows how to get to the finish line. A buyer who's new to the market may be making offers they can't actually execute.
Ask for specific examples. "We've bought homes in Frayser, Whitehaven, Cordova, and Bartlett" is a meaningful answer. "We buy houses all over" is not.
Step 3: Compare Net Proceeds — Not Just Offer Price
A $130,000 cash offer isn't always better than a $125,000 cash offer. Look at:
- Who pays closing costs? Some buyers deduct these from your proceeds. Others cover them entirely.
- Are there any fees? Legitimate cash buyers don't charge sellers anything.
- What's the timeline? A faster close means fewer mortgage payments, insurance payments, and carrying costs.
Do the full math, not just the headline number.
Step 4: Read the Contract Carefully
- Inspection contingency — can they renegotiate the price after the inspection?
- Financing contingency — if they claim cash but have a financing out, they're not a true cash buyer
- Earnest money — a serious buyer puts down earnest money. No skin in the game is a red flag.
- Closing date — is it firm, or "on or before"?
Step 5: Check Reviews and References
Google the company name. Look for reviews on Google, BBB, and Facebook.
Real buyers have a real reputation — good or bad. A buyer with no reviews, no web presence, and a brand new website should raise questions.
Step 6: Trust Your Gut on Communication
How responsive are they? Do they show up on time to walk the property? Do they explain their offer clearly and answer questions directly?
You're doing a significant financial transaction with this person. If they're hard to reach before you sign, they'll be harder to reach after.
Why Sellers Choose Spencer Buys Houses
- Over 400 homes purchased across Memphis and the Mid-South
- Our own capital — no assignments, no third-party buyers
- No fees, no commissions — ever
- We cover closing costs — what we offer is what you net
- Consistent communication — you'll always know where you stand
- We close through Bradsher, Albert & Stuart, PLLC — trusted Memphis title company
SpencerBuysHouses.com — Get your offer and compare it to anyone else's.
Frequently Asked Questions
How do I know if a cash home buyer in Memphis is legitimate?
Look for Google and BBB reviews, a real web presence, and ask for proof of funds. Legitimate buyers use their own capital, put down earnest money, and don't charge any upfront fees. If a buyer assigns contracts instead of buying directly, they're a wholesaler — not a cash buyer.
Should I get multiple cash offers before selling?
Yes — getting 2–3 offers gives you a baseline for comparison. But compare net proceeds (after closing costs and fees), not just the headline price. A slightly lower offer with zero fees and a faster close may actually put more money in your pocket.
What's the difference between a cash buyer and a wholesaler in Memphis?
A cash buyer purchases your home directly with their own funds. A wholesaler puts your home under contract and then sells (assigns) that contract to another investor. Wholesalers can back out if they can't find a buyer, leaving you without a deal. Always ask which type you're dealing with.
Can a cash buyer lower their offer after inspecting my house?
Some buyers include inspection contingencies that allow them to renegotiate after seeing the property. Read the contract carefully. At Spencer Buys Houses, we make our offer after walking the property — so we don't come back later and lower the number.
Who pays closing costs when selling to a cash buyer in Memphis?
It depends on the buyer. Some deduct closing costs from your proceeds. Others cover them entirely. Spencer Buys Houses covers standard closing costs — the offer we make is what you net at the table.
How long does it take to close with a cash buyer?
Most cash sales in Memphis close in 7–21 days. The timeline depends on title work and how quickly you're ready to move. If you're in a time-sensitive situation — tax sale, foreclosure, relocation — let the buyer know upfront so they can expedite.
Author Bio
Spencer Shadrach | Owner, Spencer Buys Houses
10+ years, BBB A+, WREG featured, 4.9★ / 113 reviews
Spencer Shadrach is a Memphis-based investor and property manager specializing in purchasing occupied rental properties. With 10+ years of experience and over 200 single-family transactions closed across the Mid-South, Spencer focuses on stabilized tenant outcomes and helping “tired landlords” exit the market with ease.
SpencerBuysHouses.com