3 Hidden Risks of Selling to Corporate Buyers
by Zach Burnham
February 2025

In recent years, large national home-buying companies have become a popular option for homeowners looking to sell quickly. You’ve probably seen them on TV, radio, or the “We Buy Houses” signs in your neighborhood. These corporate buyers often promise a hassle-free process and fast cash offers, but the reality can be much different. While their marketing may sound appealing, sellers often find themselves in frustrating situations with little to no protection. Here are 3 hidden risks of selling to corporate buyers…
1. Their Contracts Favor Them, Not You
Agents use contracts written by their Realtor Association which is designed to equally protect both parties. Corporate buyers write their contracts to protect themselves, not the seller. These companies insert clauses that allow them to back out, alter the deal, tack on hidden fees, or delay closing as many times as they like. This can leave you with less money and limited legal options if something goes wrong.

2. They Make Offers Without Proper Research
These companies often provide attractive initial offers without thoroughly evaluating your home. However, after a more in-depth assessment, they may lower their offer or back out entirely. Unlike traditional buyers who have agents to guide them through inspections, corporate buyers may drag their feet, find something they don’t like about the property, and walk away. This keeps your property off the market wasting valuable time and missing out on serious potential buyers. Buyers who stand to lose a lot more by walking away because they don’t buy hundreds of houses a month like corporate buyers.
3. They Resell the Contract for a Profit
Many corporate buyers never intend to buy your home themselves. Instead, they engage in a practice known as wholesaling, where they sell the contract to another buyer at a higher price. (Realtor Association contracts do not allow this, further supporting risk #1). As a result, you miss out on potential profits that you could have gained by selling directly to a final buyer. This process benefits the corporate buyer while leaving you shortchanged.
The Bottom Line
I could probably list a few more but there are 3 hidden risks of selling to corporate buyers. Selling your home is a major financial decision, it’s not something to take unnecessary risks with. While corporate buyers may seem like an easy solution, their contracts, lack of commitment, and wholesaling tactics can leave you at a disadvantage. Overall, being unrepresented regardless of who your buyer is leaves you open to unnecessary risk, financially and legally. Choosing a trusted real estate professional can help you secure a better deal and avoid unnecessary risks.
Check out more of my #RealValueRealtor blog content HERE. Plus follow me on Facebook, LinkedIn, and Instagram to stay in touch!