How 'We Buy Houses' Companies Actually Work in DFW — The Honest Truth

What Is a Cash Home Buyer?

A cash home buyer — sometimes called a real estate investor or wholesaler — is someone who purchases houses directly from homeowners without using bank financing. Because there's no lender involved, the process is much faster and has far fewer conditions than a traditional sale.

In the DFW market there are individual investors, small local companies, and large national 'iBuyer' platforms like Opendoor and Offerpad. The local operators typically offer more flexibility and personal service than the national platforms.

How Are Cash Offers Calculated?

Cash buyers use a formula that starts with the After Repair Value (ARV) — what the house would sell for on the open market in fully repaired condition. From that number they subtract the estimated repair costs and their profit margin.

A typical formula looks like: Offer = (ARV × 70-75%) minus repair costs. This means a house with a $300,000 ARV and $40,000 in repairs might receive an offer around $185,000. The offer reflects the buyer's risk and the cost of repairs, not a reflection of the homeowner's situation.

What Happens After You Accept?

Once you accept an offer, both parties sign a purchase agreement. A licensed title company opens the transaction, verifies title, and handles all the paperwork. There's no home inspection contingency that can kill the deal. No appraisal. No bank underwriting. The title company closes the transaction and wires or hands you a check. The whole process typically takes 7-30 days.

Is It Legitimate?

Yes — cash home buying is a legitimate, legal transaction that closes through a licensed title company the same way any real estate sale does. Reputable buyers will never ask you to sign over your deed directly to them or transfer title outside of a title company. That's a red flag. Every legitimate cash sale closes through a neutral third-party title company.

When Does It Make Sense?

A cash sale makes financial sense when: the property needs significant repairs you can't afford; you're facing a time-sensitive situation like foreclosure; you're dealing with a difficult title situation; you need to close quickly due to relocation or divorce; or the property is vacant and costing you money every month. For properties in great condition with no time pressure, a traditional listing often nets more money. A good cash buyer will tell you honestly which option makes more sense for your situation.