How "We Buy Houses" Companies Work in Sacramento (2026)

A "we buy houses" company is a cash investor that buys homes as-is, skips the MLS and closes on a date you pick, usually within 7 to 30 days. The catch is price. Most investors start from about 70% of what the house would sell for after repairs, then subtract the repairs.

This guide walks through how those offers get built and how to tell a real buyer from someone who plans to sell your contract to another investor. We're a Sacramento cash buyer ourselves, so we'll also tell you when listing with an agent is the better call.

What a "we buy houses" company is

Behind the yard signs and "cash for houses" ads are real estate investors who pay with cash or private loans instead of a bank mortgage. No lender means no appraisal and no loan approval. That's how they can buy a house a bank won't finance, and close in days instead of months.

In Sacramento you'll usually run into one of four types:

Type	Who actually closes	Homes they buy	What to watch for
Local investor (renovates and resells)	The investor	Any condition, including major repairs	The offer depends heavily on their repair estimate
Buy-and-hold investor	The investor	Homes that work as rentals	May pass on homes that need too much work
Wholesaler	Usually another investor, after your contract is assigned	Any condition	An "and/or assigns" clause, and a deal that stalls if no end buyer is found
iBuyer (large online buyer)	The company	Newer homes in good condition	A service fee and repair deductions after the inspection

A wholesaler isn't automatically a bad actor. Some are upfront about what they do. The trouble is the ones who aren't, so ask directly: "Will you close with your own funds, or assign this contract?"

How cash offers are calculated

Most investors start from the same formula, usually called the 70% rule:

Offer ≈ (after-repair value × 70%) − repair costs

After-repair value (ARV) is what the house would likely sell for once it's fixed up. Thirty percent sounds like a big haircut, and it is. It pays for the investor's costs to buy and resell, several months of taxes, insurance and utilities while they own the house, whatever turns up behind the walls, and their profit.

Say the house would sell for $450,000 after repairs and needs $40,000 of work:

$450,000 × 70% = $315,000
$315,000 − $40,000 in repairs = $275,000 offer

Real offers move around that number. A house that needs paint and carpet often gets more. One with foundation or roof problems gets less. We break down each piece of the formula, with the costs behind it, in How Much Do Cash Buyers Pay?

Before you talk to any buyer, get a rough idea of what your home is worth. Recent sales on your street, or a comparative market analysis from a local agent, give you something to hold every offer up against.

Who a cash sale makes sense for

The discount is worth it when speed, certainty or the state of the house matters more to you than the last dollar. In practice that's usually one of these:

You're behind on payments and a trustee sale is coming. Closing before that date pays off the loan and keeps whatever equity is left in your pocket. See selling a house in foreclosure.
You inherited the house, or it's going through probate. Heirs who live out of town, or who can't agree on what to do with it, often prefer one clean sale. See selling an inherited house and probate sales.
You're divorcing, and both of you want a fixed number and a quick exit. See selling during a divorce.
The house needs major work. Foundation, roof, water or fire damage scares off buyers who need a loan. See selling with foundation problems.
There are tenants in it. Plenty of investors buy occupied rentals and keep the lease in place. See selling a house with tenants.
You're on a hard deadline, like a job transfer with a start date six weeks out.

If none of that sounds like you and the house is in good shape, list it with an agent. You'll usually walk away with more money. We'd rather tell you that here than have you figure it out after the fact.

How the process works, step by step

You reach out. Call, or fill out a form with the address, the condition and when you need to move.
The buyer sees the house. In person or on a video walkthrough. Some buyers lean on public records and photos too.
You get a written offer. A number over the phone means nothing until it's on paper with the terms.
You take your time. Compare offers, ask questions, counter or walk away. A real buyer won't push you to sign on the spot.
Escrow opens at a title company. The buyer puts down an earnest money deposit, and the title company checks for liens, judgments and anything else that has to be paid off at closing.
You close. You sign at the title office or with a mobile notary, and the money is wired to you.

How it works with Pacific Home Buyers

We come out within 48 hours and usually hand you a written cash offer on the same visit. You pick the closing date: as soon as 7 days out, or later if you need time. We pay the closing costs, there are no fees or commissions, and you can leave behind anything you don't want.

See our process

What to check before you sign (with any buyer, including us)

Get everything in writing: the price, the closing date, who pays closing costs and any fees taken out at closing. Ask for an estimated net sheet so you know what lands in your account.
Ask which title or escrow company will close, then call that company yourself.
Ask for proof of funds, like a recent bank statement or a letter from the buyer's lender.
Read three clauses in the contract: how long the inspection period runs, whether the buyer can back out or lower the price during it, and whether the buyer is listed as "and/or assigns". That phrase means they can sell the contract to someone else.
Find out how much earnest money goes down and when it stops being refundable to the buyer.
Check that the company exists. Look it up in the California Secretary of State business search. If anyone claims to be a licensed agent or broker, check the California DRE license lookup.
Read the reviews, the bad ones especially, and see how the company answers complaints. Google and Yelp tell you more than any website, ours included.
Take the contract home and show it to an attorney or a family member. If a buyer won't give you that time, walk away.

If a notice of default has been recorded on your home, California law gives you extra protection. Under the Home Equity Sales Contracts Act, you can cancel certain contracts with an equity purchaser until midnight of the fifth business day after you sign, or until 8 a.m. on the day of the trustee sale, whichever comes first (Civil Code §1695.4). A HUD-approved housing counselor can go over your options for free.

The most common scams, and how to spot them, are in Cash Buyer Scams to Watch For in California.

Cash buyer or listing with an agent?

It comes down to what you need more right now: the highest price, or a sale that's fast and certain.

Factor	Cash buyer	Listing with an agent
Sale price	Below market, usually built from about 70% of ARV minus repairs	Closest to full market value
Time to close	Usually 7 to 30 days	Often two to three months from listing to closing
Repairs and cleaning	None, sold as-is	Usually some, plus staging and showings
Agent commissions	None on your side	Usually paid by the seller
Financing risk	None: no loan, no appraisal	The deal can fall through if the buyer's loan or appraisal fails

You don't have to pick one up front. Get a written cash offer, list with an agent for a few weeks, and treat the cash number as your floor. We run the real costs of each path, with numbers, in Cash Offer vs Realtor.

Taxes and legal points in California

If you owned the home and lived in it for two of the last five years, up to $250,000 of profit is excluded from federal tax, or $500,000 for married couples filing jointly (IRS Publication 523).
California doesn't have a lower rate for capital gains. They're taxed as ordinary income on your state return (Franchise Tax Board).
Heirs usually get a stepped-up cost basis on an inherited home, which can cut the tax bill a lot. See capital gains tax on inherited property.
Some probate sales need court confirmation, which adds time. Make sure your buyer has closed probate sales before (California Courts probate self-help).
A lease survives the sale. Tenants covered by the Tenant Protection Act (AB 1482) keep those protections under the new owner.

This is general information, not legal or tax advice. Talk to a CPA or an attorney about your own situation before you sign anything.

Frequently asked questions

How fast can a we-buy-houses company close in Sacramento?

Usually 7 to 30 days after you accept the offer. What slows it down is title, like a lien or a probate court date, and how soon you can move out. Most buyers, us included, let you pick the closing date.

Do I need to clean or repair the house first?

No. Cash buyers purchase as-is, so you don't have to repair, repaint or empty the house. Take what you want, leave the rest, and ask upfront whether the buyer handles the cleanout.

Will I get full market value from a cash offer?

No. Most offers start from about 70% of the after-repair value, minus repairs, to cover the buyer's costs, risk and profit. If your home is in good shape and you have time, listing it usually nets more.

Are we-buy-houses companies legit?

Many are, and some aren't. A legitimate buyer puts the offer in writing, closes through a title company you can call, can show proof of funds and doesn't rush you. Check reviews and the company's state registration before you sign.

What happens if I'm behind on my mortgage?

If the sale closes before the trustee sale, the money pays off the loan and you keep the equity that's left. If you owe more than the house is worth, the lender has to approve a short sale, which is a separate process.

Can I sell a rental with tenants still living there?

Yes. Lots of investors buy occupied rentals. The lease transfers to the new owner, and covered tenants keep their protections under California's Tenant Protection Act. Tell the buyer about the tenancy upfront.

What is the difference between a cash buyer and a wholesaler?

A cash buyer closes with their own money. A wholesaler signs your contract and sells it to another investor for a fee. Look for "and/or assigns" in the contract and ask who will actually close.

Next step

Want to see what a cash offer on your house would look like? The form takes about a minute, or call us at (916) 885-0510. The offer is free, it's in writing, and you don't have to take it.