7 Secret Tactics Used By We Buy Houses For Cash Companies

Cash home buyers dont want you to know about these but I'm going to tell you anyway!

These common strategies are used to beat you up on the price, leave you feeling like you have no other option than sell your house to them right there and then! Some might even question if they are LEGAL! 

I have talked to legitimate companies that buy houses for cash that are appalled at some of the tactics they have seen used. “Legit cash home buyers that truly want to serve their communities have plenty of opportunities to make money and should never put their own needs ahead of the sellers” said Shaun Martin, owner of a real estate company based in Denver Colorado. 

“We pay cash for houses in Denver and need to get a fair deal to make sure we can pay rent, pay staff and keep the lights on but the deal must be fair for us and the seller! I have heard many ugly investors boast of how they took a little old lady to the cleaners. 

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Avoid Costly Mistakes When Selling Your House Fast for Cash

For most of us buying and selling a house will easily be the largest financial transaction of our lives! I know it was for me!

With so much at stake it’s so important you get it right. 

When you are selling your home to a real estate professional you must remember that it is their job. They will have a lot more experience than you. While it would be nice that you could trust them always double-check what they are saying. 

If you are not selling your house to me feel free to ask me a question. You can easily do this on the form. I promise to give you the facts – even if it’s not what you want to hear.

While it is not the scope of this article you must, of course, consider if selling your house for cash is a good idea.  There are many circumstances when a fast sale of your house for cash makes sense but it is not right for everyone. 

Make sure you understand your reason for selling. This will help you avoid costly mistakes for sure!

Don’t miss the:

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How to Beat Cash Home Buyers When Selling to Them?

There is no “beating” a cash buyer. They will either make a deal or they want. And if they make a deal it will either be a fair deal for them or it will be a home run deal for them.

When selling for cash you just want to make sure you give them a fair deal. To do this you must have a basic understanding of how to run comps. You can run comps for free very easily these days with a great degree of accuracy. 

If you know what your house is worth in its current condition then you know what a fair deal is, right?

7 Tactics We Buy Houses For Cash Companies Use Against You!


As I have already stated these tactics are designed to make you sell your house for less than a fair cash price. 

When you are dealing with cash home buyers in your city you must keep your witts about you. You must have nerves of steel. You must know what it is you need from selling your home for cash and above all…


Now, this last one can be difficult. I say this because many homeowners that I work with call me in varying degrees of needing to sell fast. That’s why they call a cash buyer because we can close faster on a house than anyone else.

Some of the situations I commonly see are:

  1. Needing to sell for cash to pay bills.
  2. Selling because of divorce.
  3. Behind on the mortgage.
  4. Late on property taxes and facing penalties.
  5. In Preforeclosure or facing a foreclosure auction sale soon.

The common theme is these people need fast cash and will be feeling the pressure. AND this may be you too!


You still have time to be patient. You do not have to sell to the person standing in front of you.

You can ABSOLUTELY go online, search cash home buyers near me, call a few and have a handful of cash offers by the end of the week. 

Some of these cash offers will be fair, some of the “we buy houses” companies will be legitimate. BUT UNFORTUNATELY, some of them won’t be and that’s why I am here to reveal the secrets of the bad we buy houses companies. 

Let’s dive in to the 7 common tactics used by we pay cash for houses businesses right now. 

BUT REMEMBER: When dealing with real estate professionals you must be patient with yourself. Sleep on it as they say.


I'm Going to Sell My House Fast for Cash - What Should I Look Out For?

Here we go. 7 tactics you must know about before you sell your house fast for cash. 

The nickel and dime approach.

When you search online for cash homebuyers, all of them will tell you they pay cash for houses as-is. I’m sure you’ve seen such slogans as cell cash sell fast and sellers is or you don’t have to repair or fix anything and many companies say you don’t even have to do the cleaning.

Now, while in theory this is true Many companies that buy houses for cash will send you a cash offer and you will accept it because it seems fair. Then they will tell you they need to come and see the house just to ensure it is in the same condition as you describe to them over the phone.

Harmless enough, right?

This is where a bad company will be. Try and beat you down using the nickel and dime approach. The nickel and dime approaches when the cash buyer will walk through your home and mark down absolutely any little neck broken thing and detail as to why the house wouldn’t sell for top dollar.

An example of some items they might highlight are a cracked outlet, a scuffed wall, or maybe they say the electrical needs updating even though they already knew the house was 100 years old.

And this is where it gets hard for the seller because they can’t deny these things, and unscrupulous buyers will start to make the person feel like these things should be repeated to sell it however the person. The cash buyer will say they will still buy the house, but they need to subtract these items from their cash offer.

Now remember they already offered you cash at a price that represents they house hasn’t been renovated. So now they are discounting the discounted price! This is what bad companies do!

Don’t let them. Remember you can always walk away. Yes you signed a contract but as soon as the property investor makes changes to the contract it s a new contract and if you don’t sign it then you are under no obligation to sell to them!

If your gut is telling you it feels off then take a moment. Tell them you need a day or 2 to think about it and talk to a trusted friend. If they put pressure on you to sell, limited offer etc, just remember, they came to you! If they are willing to give you cash for your hose so is someone else!

The If they are willing to give you cash for your hose so is someone else! The nickel and dime approach is a very common tactic employed by companies that pay cash for houses. Don’t forget about this one. It’s very easy to spot and very easy to walk away from.

Fear tactics after inspection forcing seller into corner.


Companies that use fear tactics to force a seller to feel like they have to sell is so WRONG!!! I am saddened by how often I come across people who are trying to sell their house that have had this happen to them.

Let me give you an example of what it looks like.

  1. You called a company asking if you can sell them your house for cash.
  2. You negotiate a cash sale price and they come and do an inspection.
  3. After the inspection, they identify some big scary items and present them to you.
  4. For example, let’s say there is an issue with the sewer line like some of the clay pipes are misaligned, or there is root intrusion.
  5. NB – Misaligned clay pipes, or root intrusion in Denver is very common. 999999 times out of a million If the clay pipes are misaligned, you don’t have to do anything. If there is a root intrusion, you can use one of many cheap products online or from a local hardware store that will encourage the roots to go elsewhere. These products can be bought for less than $20 And applied in a matter of seconds By any homeowner.
  6. So getting back to the Example, the potential buyer has identified an issue with your sewer line and towse you that this must be remedied and other people will find it also.
  7. They tell you the cost to replace a sewer line could be 10 or $15,000.
  8. They then go on to tell you that if you think to sell your house to someone else, that it is your legal obligation to disclose this issue.
  9. Fat to do you a favor. They will take the house for let’s say 8000 lists, which is splitting the difference of the entire replacement cost of the sewer line.
  10. Now remember most of these issues are known issues, so this fire is using scare tactics and a thread of the law to put fear into you to sell to them. But at a further discounted rate.

There are many real estate professionals that use the fear tactics of an inspection and big ticket items. To force a seller to reduce their price. In fact, this isn’t just a standard practice in the we pay cash for houses business. I have also come across this with many other real estate professionals. Looking to get their clients a house.

Once again, when you’re selling a house, you have the option to either walk away or say you don’t want to do these things. You also have the option to say you need time to think about it.

Even if you need to get rid of your house fast, you can still sleep on it overnight.

If you don’t have a friend to talk to, please feel free to reach out to me. My details will be below. Use me as a third party resource even though we’re not making a deal. I like to give people a solution or an option to talk to somebody that is in the industry because I really care about Denver and I want to see Denver continue to grow strong and be a safe place for me and my future families and generations.

Many “Cash Buyers” aren’t buyers are all! – but sellers of contracts.


There are a lot of we buy houses companies. It say that they buy houses, however. In fact, they never have any intention of buying your house. These are called real estate wholesalers and this is how their business works.:

  1. They contact you saying they will pay cash for your house.
  2. The house buyer will negotiate with you and send you a cash offer.
  3. If you agree, you will sign it and now you are under contract to sell your house.
  4. Included in the contract will be a clause that allows the cash “buyer” To assign the contract to another party.
  5. This means that they can infect, sell the contract to buy your house to someone else at a higher rate.
  6. Wholesalers are legitimate businesses and there are a lot of good ones out there. However, they never have an intention of actually buying your house.
  7. This is a legal practice, however the downside is you don’t know who you are actually selling your house to now.

As I said, there are a lot of really good and honest trustworthy wholesalers out there. I think a key component is they need to be transparent and let you know that there is a chance that they might sell the contract onto somebody else.

Honesty and transparency is key in any industry and I feel that it should be more prevalent in the real estate industry too.

Many Companies Don’t Reinvest Locally – Ship Profits Overseas

As you are probably aware, there are many overseas investors, national companies and hedge funds that also buy houses for cash in our community. This is completely legitimate, however, all too often. Instead of reinvesting in our local communities, the money is shipped off overseas or to some massive corporation somewhere else in the country.

I firmly believe that if you live and work in an area or profit from an area, you should reinvest those profits into the local community.

For example, Watson buys. Has two officers based right here in Denver. We have an office in Montbello on the northeast end of Denver and another one in golden right under the Front Range. We are a local Colorado company, We shop at the local supermarket. We go to the local parks. We appreciate all this and we pay taxes right here in Colorado.

Profits are also spent in and with local businesses in and around Denver and all of Colorado because this is where we live.

Don’t have money to buy your house – verified funds

If a Business calls you and tells you they pay cash for houses, then shouldn’t they have cash available to buy it?

Mini we buy houses for cash companies tell you that they use their own funds and therefore avoid bank fees and interest charges and the rest of it. However, many companies are actually still using loans behind the scenes that have been pre arranged.

Why is this a problem?

This is a problem because they build in the cost of the loan and pass it on to you, the home seller.

So while it may look like they are paying cash to you directly for your house, they aren’t in fact and they are charging you more for fees that they are incurring.

You are well within your rights to ask for proof of funds and legitimate companies that buy houses for cash like Watson buys will be happy to show you this.

Don’t put real earnest money down so they can walk away

When you enter into a contract to sell your house, there is something called earnest money. Earnest money protects the home seller if the buyer backs out. It’s an amount of money paid in cash, typically to a title company. That will go to the seller if the buyer chooses not to close on the property.

Now, if the buyer has no intention of closing on the property and instead may be trying to sell the contract to someone else or something worse, then they will offer you little to no earnest money.

It doesn’t matter if you’re selling your house for cash, so in your house, fast for cash, selling your house by yourself or selling it through a real estate agent, make sure that you get an earnest money amount that feels right to you.

If you’re working with the cash buyer, you always have the option to ask for more earnest money.

Giving you false comps to undervalue the cash value of your house.


When you are selling your house the best way to know if you are getting a fair deal is to run real estate comps. This is where you compare your house to other houses that recently sold in your neighborhood. By comparing your house with others that recently sold you can work out roughly what your house is worth

When running comps the houses that sold must be as recent as possible. This is because house prices can change depending on the local market conditions.

An example of this is houses in Denver 5 years ago were selling for half of what they are selling for today.

So that brings us to a tactic by some companies looking to buy your house. They will show you comps from a long time ago or they will show you houses that are from different neighborhoods. They will also have many reasons why these are still acceptable as comps and put a little doubt in your mind as to the true cash value of your property.

So how do you combat cash buyers and investors who are giving you false comps

  1. Make sure the houses that are being used as comparisons were sold recently. The more recent the better and anything outside 6 months is a real stretch.
  2. Ensure the houses are in same condition. For example if your house is completely renovated and nice then it is obviously worth more than a run down old ugly place, right?
  3. Comparable properties must be in the same neighborhood. Ideally on the same side of any major highway and not over railway lines. Even within neighborhoods, a house on the corner of a busy street may sell for less than a house 2 doors down away from the hustle and bustle.

If you have questions on comps check out this guide on how to run real estate comps for free.

Another far-fetched by an apparently true story is when looking at the value of your house – if you are in a house that is haunted you must also look for comps that are haunted houses.

Don't be fooled by National Companies and Overseas Hedge Funds!

Are You working with a locally based Company or a National or Overseas Fund that takes money out of the community instead of reinvesting in it.

Bigger isn’t always better. And when it comes to cash buyers this couldn’t be more from the truth. Many of us suspect that the large corporations send money overseas. We hear about it in the news.  AND if a company is making profits from my community I think it should reinvest in it – not drain it of all its cash! What do you think?

Other items large corporations say they are better on is pricing however in a phone survey we found that national companies potentially offer less than locally based companies. We talked to a local cash home buyer who had this to say, “As a local we are driving around the neighborhoods, we are seeing the gentrification, and monitoring first hand what is happening with the prices of house in our city. When companies are calling in from Silicon Valley or overseas there is no way they can truly understand the cash value of a persons home like we do.

What I cant stand personally is being called by a robot, having that 10 seconds of silence then someone saying – HI am I speaking to so and so. I’m sure you have had the call. It Is so not personal and so intrusive.

At Watson Buys we never call out to people randomly. Our way of getting in touch with people is putting our name out there and letting people come to us. It is certainly not aggressive and while  many other we buy houses for cash companies think we are silly at Watson Buys we believe your home is yours and we are not going to invite ourselves in – even if it is just through the phone.

We believe if and when you are ready to sell to a cash buyer you will find us and call us.

Watson Buys is a cash home buyer based in Denver Colorado. We buy houses for cash. We will pay cash for any house in any condition. Our mission is to make selling your home fast, easy, simple and fair.

If you have any questions fill out the form or call us on 720.418.8670.

Who Am I? I'm a Denver Based Investor Who Will Buy Your House for Cash.


Who am I?

My name is Shaun Martin and I am a Denver based real estate investor. I have been paying cash for houses since 2008. I live in Denver. My family is in Denver. I love Denver and I care about Denver. That is why I want to give you behind the scenes look at tactics that bad companies use to buy your house for cash for a price that is not fair.

I was born in New Zealand and moved to America about 20 years ago. I’m very lucky to be here and I want to share my gratitude with others. As I am in the real estate industry, I I can tell you about the behavior of some illegitimate people in companies in this industry.

Why trust me?

You don’t have to trust me. However, I am going to tell you some things that when you sell your house for cash, you need to lookout for. If nothing else, even if I do these things now, you know to lookout for them, right?

I have seen. These tactics used to buy houses for cash many times over and I just don’t think it’s fair that people who have saved and worked hard their whole lives have so much taken from them. With these equity purchasing companies.

By equity purchasing company I mean a we buy houses for cash company. They equity purchasing companies because they buy houses for less than the MLS or retail price. Now, while this approach is completely legal and also a legitimate business practice like any industry. There are some companies out there that are doing things that are not right and I want to reveal some of those tactics so you don’t get caught up in it and you get a fair cash deal when you sell.

So enough of the introductions, shall we dive in?


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