What a cash home buyer is
The phrase covers four different kinds of buyer. They behave differently, so it helps to know which one is calling you.
| Type | What they do | What to know |
|---|---|---|
| Investor who buys and renovates | Buys with their own money or a private lender, fixes the house, then sells or rents it. | Pays for the repairs and risk, so the offer is lowest on rough houses. Ask how many houses they bought in your town this year. |
| Wholesaler | Signs a contract with you, then looks for another investor to take over (assign) that contract for a fee. | May never have the money to buy. See the wholesaler section below. |
| iBuyer | A national company that makes an algorithm-based offer and charges a service fee. | Covered in iBuyer vs cash buyer vs agent. |
| Ordinary cash buyer | A person or family paying all cash for a home to live in. | Pays near market price. Often one of many offers on a listed house. |
Cash buyers are common here. Realtor.com reported that 26.4% of Massachusetts home purchases were all cash in the first half of 2025, and 26.1% in Greater Boston (Banker & Tradesman). Most of those are buyers with large savings or equity, not "we buy houses" companies.
What cash buyers pay
No free, official dataset tracks investor cash offers in Massachusetts. The numbers below come from industry sources, many written by cash-buyer or referral companies that earn money when you pick them. Treat them as ranges, not promises.
| Buyer | Reported price | Source type |
|---|---|---|
| Cash buyers overall | Roughly 65% to 85% of value | FairOffer blog, a cash-buyer company |
| National instant-offer platforms | About 9% to 11% below value | FastExpert blog, an agent-referral company |
| Local investors paying for repairs and risk | About 15% to 30% below value | Same FastExpert blog |
| Investor rule of thumb | 70% of after-repair value, minus repair costs | Investor marketing pages. A rule of thumb, not a statistic. |
Your own offers are the only numbers that matter. Condition drives the gap: the worse the house, the more the discount is paying for work you would otherwise do and wait on. On a house in good shape, a deep discount is usually just a low offer.
Do the math on your net, not the headline price. A cash offer usually has no agent commission and no repairs, while a listing has both. The net proceeds calculator and the cash vs listing comparison tool put the two side by side. Our guide to comparing cash offers shows the line-by-line method.
Fees and costs to ask about
- Service or "processing" fees. An investor who buys directly rarely needs one. iBuyers charge a service fee that is shown in each offer. Ask for every fee in writing before you agree.
- Closing costs. Ask who pays the closing attorney, title and recording. In Massachusetts the seller customarily pays the deeds excise tax of $4.56 per $1,000 of price (MGL c.64D s.1 sets the tax; ask your attorney who pays in your contract).
- Repair credits. Some buyers lower the price after an inspection. Ask whether the offer is final or can be re-priced, and under what conditions.
- Your own payoff and liens. A mortgage, home equity line, municipal lien or unpaid taxes come out of your proceeds at closing, whoever the buyer is.
How to spot a bad offer
- Pressure to sign today. The FTC says that if a buyer pushes you to act immediately, walk away, and to have a lawyer or trusted adviser read the contract (FTC).
- No proof of funds. A real cash buyer can show a bank or brokerage statement or a letter from the institution holding the money. "Funds available" in an email is not proof.
- The price changes late. Some buyers offer a high number, then lower it just before closing after you have made plans. Ask what in the contract lets them re-price.
- Long exclusive rights or recorded documents. The Massachusetts Attorney General sued MV Realty over agreements that paid homeowners small amounts of cash, typically under $1,500, in exchange for a 40-year exclusive right to list their home. The AG reached a $2.25 million settlement (Mass.gov). Do not sign anything that gives a company a right to list or buy your home in the future, or that gets recorded against your title, without an attorney.
- Selling the deed to "help" with a foreclosure. The FTC describes equity-skimming: a scammer takes the deed, rents the house out, and the mortgage stays in your name (FTC). If you are behind on payments, see a HUD-approved housing counselor first.
- Sale-leaseback offers. The FTC warns of high fees, rising rent and eviction risk when you sell and rent back (FTC alert, Oct. 3, 2024).
Wholesalers and assignment contracts
A wholesaler signs a purchase contract with you, then sells their rights under that contract to another investor and keeps the difference. This is called an assignment. It can be a fast way to find a buyer, but you are dealing with someone who may not hold the money.
- Ask directly: "Are you buying this house yourself, or will you assign the contract to someone else?"
- Read the contract for the words "assign" or "and/or assigns." If your contract lets the buyer assign it, you may not know who ends up buying until closing.
- Ask about the deposit and what happens to it if the wholesaler cannot find an end buyer. Never agree to terms that let them cancel freely while you cannot.
- Massachusetts defines a real estate broker as a person who, for a fee or commission, negotiates or offers to negotiate the sale of real estate for another person, and requires a license (MGL c.112 s.87PP). Whether a particular wholesaler needs a license depends on how the deal is set up. We could not find a Massachusetts statute that deals with wholesaling by name, so ask your attorney. You can check any license in the state license lookup.
Proof of funds, and what else to ask for
- Proof of funds: a recent statement or institution letter showing money at least equal to the price. If they use a private lender, ask for the lender's commitment letter.
- Company details: the legal name, the people who sign, and the address. Search the company name online and check recorded deeds for houses they say they bought (see how to value your house for the free registry search).
- Contract terms: inspection or financing contingencies, closing date, deposit, assignment, and who pays which costs.
- Two more offers: from another investor and from a listing agent's market opinion. One offer is a number; three are a market.
Massachusetts is an attorney state in practice: the Massachusetts Trial Court Law Libraries note that real estate attorneys are a regular part of buying and selling by law and practice. Hire your own, even when the buyer offers to "handle everything."
What Home Options MA does and does not do
We do not buy houses. We are not a real estate broker or agent. If you send us your details, we pass them to independent local investors and licensed agents who may pay us a fee for the introduction. You can say yes to one, both, or neither, and nothing is owed. Our disclosures page has the full wording.
If you are selling because of a death, a move, a tenant problem or a house in rough shape, the situation pages show how the options compare: house needs work, sell as-is, inherited or probate home, and tired landlord. To report a business that treated you unfairly, file a complaint with the Attorney General's Consumer Advocacy & Response Division or call the consumer hotline at (617) 727-8400. You can also report scams to the FTC at ReportFraud.ftc.gov.