The Truth About 'We Buy Houses' Companies in Fresno

You've seen the yellow signs on telephone poles. You've gotten the postcards in the mail. "We Buy Houses — Any Condition — Fast Cash!" The phone numbers are different, the names are different, but the pitch is always the same. So what's actually going on behind these signs? And how do you know which companies are legitimate and which ones will waste your time — or worse, take advantage of you?

The Three Types of "We Buy Houses" Companies

Not all cash buyers are the same. There are three fundamentally different business models operating under the "we buy houses" umbrella, and understanding the difference is critical before you sign anything.

Type 1: Direct Cash Buyers (Legitimate)

Direct cash buyers use their own capital to purchase homes. They make money by renovating and reselling or renting the property. Because they're buying with their own money, they can close quickly, provide proof of funds immediately, and honor their offers without last-minute price reductions.

Alder Heritage Homes is a direct cash buyer. Connor Morris (CA DRE #02219124) purchases homes with his own capital. There are no middlemen, no assignment contracts, and no surprises at closing.

Type 2: Wholesalers (Misleading)

Wholesalers are the most common type of "we buy houses" operator — and the most problematic. A wholesaler doesn't actually buy your home. Instead, they put it under contract at a low price, then sell that contract to a real investor for a fee of $10,000–$30,000. That fee comes directly out of what you receive.

Wholesalers are technically legal in California, but they are required to disclose their intent to assign the contract. Many don't. The result is that you think you're selling to the person who made the offer, but you're actually selling to an unknown third party who you've never met and who may have different expectations about the property's condition.

The telltale sign of a wholesaler: the contract says "and/or assignee" after the buyer's name. This means they can sell your contract to anyone without your knowledge or consent.

Type 3: iBuyers (Algorithm-Based)

iBuyers like Opendoor and Offerpad use algorithms to make instant offers on homes. They typically offer closer to market value than traditional cash buyers, but they charge "service fees" of 5–8% and require the home to be in good condition. They don't buy distressed properties, probate homes, or homes with significant deferred maintenance.

iBuyers are legitimate but not the right fit for most sellers who need a cash buyer — their fees often exceed what you'd pay a traditional real estate agent, and they're very selective about what they'll purchase.

Red Flags to Watch For

Before you sign anything with a "we buy houses" company, look for these warning signs:

• "And/or assignee" in the contract: This is the clearest sign of a wholesaler. Do not sign a contract with this language unless you understand and accept that your home may be sold to an unknown third party.
• Can't provide proof of funds: Ask for a bank statement or letter from a financial institution showing they have the cash to buy your home. A legitimate direct buyer can provide this within 24 hours. A wholesaler cannot.
• Vague or verbal offers: Any legitimate buyer will provide a written offer with a specific price, closing date, and terms. Verbal offers are meaningless.
• Long inspection periods: A 30–45 day inspection period is a sign that the buyer is shopping your contract to other investors. A direct buyer needs 7–14 days maximum.
• Price reduction at closing: This is the most damaging tactic. A buyer agrees to a price, then finds "problems" during inspection and demands a reduction. Legitimate buyers make offers based on the property's condition as-is and don't renegotiate unless they discover something materially different from what was disclosed.
• No license number: In California, anyone who represents themselves as a real estate agent must display their DRE license number. Ask for it. Verify it at dre.ca.gov.

How to Verify a Cash Buyer Is Legitimate

Before signing anything, do these three things:

1. Ask for proof of funds. A bank statement or proof of available capital, dated within the last 30 days. If they can't provide it in 24 hours, they're a wholesaler.
2. Check their DRE license. Search the buyer's name at dre.ca.gov. If they're a licensed real estate agent, their license, status, and any disciplinary history will appear.
3. Read the contract. Look for "and/or assignee" language. If it's there, ask them to remove it. A direct buyer will agree. A wholesaler will resist or make excuses.

The Alder Heritage Homes Difference

We built Alder Heritage Homes specifically to be the alternative to the predatory cash buyer market. Connor Morris is a licensed California real estate agent (DRE #02219124) who buys homes with his own capital. We provide proof of funds within 24 hours, written offers within 24 hours, and we never use assignment contracts.

Our contracts don't say "and/or assignee." Our offers don't drop at closing. And if you get a higher offer from another legitimate buyer, we'll match it or beat it — or tell you honestly when their number is fair and you should take it.

If you're considering selling to a cash buyer in Fresno, Clovis, or anywhere in the Central Valley, call Connor at (559) 281-8016 for a free consultation. We'll answer every question honestly, including whether a cash sale is even the right choice for your situation.