The three kinds of company contacting you
The first kind is a lead broker. They are not buying anything. They collect your details, sometimes with a form promising an instant offer, and sell that information to several buyers. The tell is that the "offer" never arrives as a figure, and you suddenly start hearing from multiple companies at once.
The second kind puts a house under contract at a low number and then sells that contract to somebody else before closing. This is wholesaling. It is legal and it is not automatically bad, but you should know it is happening, because the person you shook hands with is not the person who will close.
The third kind buys with its own funds and closes. That is the only one where the number you are given and the number at closing are the same thing by default.
Four questions that settle it
Four questions do most of the work.
Proof of funds? A real buyer has it and shares it. Excuses are an answer in themselves.
Closing yourselves, or assigning? You are entitled to a plain answer before you sign, whichever it is.
Can the number change after inspection? If it can, treat the offer as provisional, because it is.
My own attorney? Always, in New York. Be wary of anyone steering you to theirs or suggesting you skip it.
Warning signs worth taking seriously
The list, roughly worst first: a number before a viewing, pressure to sign before you can get a second opinion, a request for money from you, hesitation over proof of funds, and vagueness about who is really buying.
One of these alone does not prove anything. Several together describe a buyer who is counting on you not to ask. The answer is always the same: slow down, put your questions in writing, and have your attorney look before you sign.
The normal sequence, step by step
Somebody visits the house. In New York both sides instruct attorneys, and yours reviews the contract before you sign anything. A deposit is held in your attorney's escrow account, not handed to the buyer. Title is searched, which is where liens, judgments and open permits surface. Then you close, on a date in the contract.
What should not happen anywhere in that sequence: a renegotiation because of something an inspection found, a new party appearing as the purchaser, or a request for money from your side. If any of those occur, that is the point to stop and call your attorney rather than the buyer.
Where we sit, since you are asking about us too
The same questions, answered for us. Proof of funds: yes, on request. The number: it holds from offer to closing, because we price the condition up front. Your attorney: your own, always.
Assignment: ask us directly whether we will close on your house ourselves, and you will get a plain answer about your specific property rather than a slogan.
And when a Ronkonkoma seller would net more by listing, we tell them. It loses us some deals. It is still the right advice for a real share of the people who call.
Where your information goes
Sometimes it goes to one company. Frequently it is sold on to several, and occasionally it is sold repeatedly over months, which is why homeowners who filled in one form years ago are still getting texts.
The test is simple enough. Look for a privacy policy and read the paragraph about sharing with third parties. A site that promises an instant offer, asks for a phone number before showing you anything, and has no clear policy is collecting rather than buying. Ronkonkoma homeowners get a lot of these.
Assignment, explained properly
An assignment clause lets the buyer transfer the contract to somebody else before closing. The person who signs with you is not necessarily the person who completes, and the difference between what they agreed with you and what they sell the contract for is their fee.
It is legal, and disclosed clearly it can be a perfectly reasonable transaction. Two things make it a problem. One is not being told. The other is that if no end buyer is found, you can reach the closing date with a contract nobody is in a position to complete, having taken the house off the market for weeks.
Ask whether the contract is assignable, ask whether they intend to assign it, and have your attorney read the clause.
What to do if you think you moved too fast
See an attorney, and do it before the next conversation with whoever you signed with rather than after.
People in this position often feel foolish and stay quiet for a while, which is the worst available option because most of what can be done gets harder with time. Bring every piece of paper, including anything handed to you at the door and any text messages. Your attorney will tell you where you actually stand, and it is frequently better than you fear.
Common questions
Are all the companies texting me about my house scams?
No, though a lot of them are not buyers. The largest group is selling your contact details rather than buying property, and a second group intends to sign a contract and sell that contract to somebody else. Real buyers exist in the mix. The four questions above separate them quickly.
Should a cash buyer ever ask me for money?
No. Never, for any reason. There is no legitimate fee, deposit or application payment that a buyer collects from a seller.
They offered more than everyone else. Is that good?
Treat a conspicuously high offer with more care, not less. A number well above the others is sometimes real and is often a way to secure the contract and take other buyers out of the picture, after which it is reduced. Ask whether the figure is binding and whether it can change after an inspection, and get the answer in writing.
Do I really need my own attorney?
In New York, yes, and use your own rather than one suggested by the buyer. It is the single most effective protection available to you, and it is standard practice on both sides of every residential sale in the state.