Many cash offers for houses come from wholesalers, not buyers. A wholesaler puts your home under contract and then sells, or “assigns,” that contract to another buyer for a fee. That fee can be a few thousand dollars or six figures, and it comes out of what your house is worth. Here is how to protect yourself.
What is wholesaling?
A wholesaler signs a contract to buy your house but never plans to close on it. Instead they market the contract to investors and collect the difference between your price and the investor’s price. You give up equity in exchange for speed and convenience, often without knowing it.
Red flags in a cash offer
- The buyer’s name on the contract is followed by “and/or assigns.”
- A very small earnest money deposit, or a deposit not held by a title company.
- Long inspection or “partner approval” periods that let the buyer walk away.
- Strangers asking to walk through your home before closing.
- A sudden price cut late in the deal after a “second inspection.”
Your rights under Maryland law
Since October 1, 2025, a buyer who may assign a residential contract must tell the owner in writing, before the contract is signed, that it may be assigned. If they don’t and then assign it, the owner can cancel the contract without penalty any time before closing. Source: Maryland HB 124 (2025) fiscal and policy note. This is general information, not legal advice; talk to an attorney about your contract.
Comparing companies? See how the companies that buy houses in Baltimore differ.
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Our promise
When Maryland Home Options makes a cash offer, we close on it ourselves. If we ever intend to assign a contract, we disclose it in writing before you sign.