We Buy Houses Florida Alternative: What Sellers Need to Know Before Signing

How the "We Buy Houses" Franchise Model Actually Works in Florida

"We Buy Houses" is a trademarked brand operated nationally through HomeVestors of America, which licenses local franchisees across Florida — including markets like Miami, Tampa, Orlando, and Jacksonville. Each franchisee is an independent investor who purchases homes at a steep discount, renovates them, and resells on the open market or to another investor. The business model depends on buying low. There is nothing illegal or deceptive about this — it is a legitimate real estate investment strategy — but sellers need to understand what it means for their proceeds.

The typical acquisition target for a WBH-style franchise is 50-70% of after-repair value (ARV). ARV is what the home would sell for after renovation. If your home would be worth $300,000 fixed up and requires $60,000 in work, a franchisee needs to buy it at roughly $150,000-$165,000 to make their margin after holding costs, renovation, selling costs, and profit. The seller absorbs that entire gap.

In Florida, this model is particularly active in older housing stock — homes built before 1990 with deferred maintenance, aluminum wiring, galvanized plumbing, or hurricane damage. Franchisees are experienced at identifying these properties and making fast, confident offers. That speed and certainty has real value. But the price sellers receive reflects the franchisee's renovation risk, carrying costs, and resale margin — not the seller's actual equity position in the market.

Florida law does not require a franchisee or cash buyer to disclose how much profit they intend to make on a resale. Under F.S. §689.261, sellers must be given a disclosure of buyer's intent only in specific circumstances. The burden is on the seller to ask the right questions before signing.

The Re-Trade Pattern: How Offers Get Cut After You Say Yes

One of the most documented frustrations sellers report with WBH-style buyers in Florida is the re-trade: an offer is accepted, and then — after an inspection, or after a vague "we need to run this by our partners" conversation — the price drops. Sometimes it drops significantly. Sellers who have already stopped showing the home, turned down other interest, and mentally moved on are now negotiating from a weakened position.

The re-trade is not random. It is a structural feature of how wholesale and franchise acquisition models work. The initial offer is made to secure the contract. Once the contract is signed, the buyer has an inspection period — in Florida, this is negotiated but commonly 10-30 days under most residential purchase agreements — during which they can request price reductions or cancel. Under F.S. §475.278, real estate licensees must disclose known material defects, but a cash buyer has no obligation to proceed at the agreed price if the contract contains standard inspection contingencies.

Some buyers insert language that makes re-trading nearly automatic: broad inspection clauses, financing contingencies (even on "cash" offers), or clauses tied to "investor approval." Sellers signing these contracts without legal review are exposed.

The re-trade pattern is distinct from a legitimate renegotiation. A legitimate renegotiation happens when a real inspection reveals a previously unknown defect — a collapsed drain line, active mold, or structural failure — and both parties decide how to share that cost. A re-trade happens when the buyer uses the inspection period as a second negotiation window, not because the home had a hidden defect, but because the business model allows it.

Cash Flow Deals does not re-trade. The price agreed at signing is the price on the closing statement. CFD uses a novation structure where the end buyer — a bank-financed buyer who will live in the property — is identified before the price is set. There is no investor review step, because the buyer is not an investor.

Who Is Actually Buying: The Wholesaler Behind the Contract

Many Florida sellers who respond to a "We Buy Houses" sign or online ad are not talking to the person who will ultimately purchase their home. They are talking to a wholesaler — someone who puts the property under contract and then sells that contract to a third-party investor for an assignment fee. The seller never meets the real buyer. The seller often does not know the assignment is happening.

This is legal in Florida. Under F.S. §475.01, a person who is not a licensed real estate broker or salesperson can buy and sell real property, including buying contracts for their own investment purposes. What is required is that the wholesaler is a principal in the transaction — they must actually intend to purchase or actually hold equitable interest — not simply act as an unlicensed broker collecting a fee for finding a buyer. The line between legal wholesaling and unlicensed brokerage is frequently tested and occasionally litigated in Florida.

For sellers, the practical consequence is uncertainty. When you sign a contract with a wholesaler, you do not know: who the end buyer is, whether the end buyer will perform, what the end buyer's inspection standards are, or whether the wholesaler will be able to close at all. If the wholesaler cannot assign the contract, they typically cancel. The seller has lost weeks and must restart.

Assignment fees in Florida wholesaling range from a few thousand dollars to $20,000 or more on higher-value homes. This fee is paid by the end investor and is rarely disclosed to the seller on the closing statement, though disclosure requirements vary by how the transaction is structured.

Cash Flow Deals does not assign contracts. CFD uses a novation structure: the original contract between CFD and the seller is replaced by a direct purchase contract between the bank-financed end buyer and the seller. The seller knows who is buying their home. The closing is handled by Title Guaranty of South Florida, a licensed Florida title company that represents both parties' interests in the transaction.

CFD's Structural Difference: Bank-Financed Buyers and the Novation Contract

The reason Cash Flow Deals can offer sellers 85-95% of market value — instead of the 50-70% a WBH franchise targets — is structural, not charitable. A bank-financed end buyer does not need a flip margin. A homebuyer who is going to live in the property is paying retail or near-retail. They are not calculating renovation costs, carrying costs, and resale margin. They are comparing your home to others available in the neighborhood and making an offer based on comparable sales.

The CFD model connects sellers who cannot use the traditional MLS — because of condition, timeline, title issues, tenant problems, or other complications — to bank-financed buyers who want those homes. CFD structures the transaction using a novation contract. Under a novation, the original contract between CFD and the seller is superseded by a new direct contract between the end buyer and the seller. This is one transaction, one closing, one title transfer. There is no assignment fee, no double close, no second investor in the chain.

Because the buyer is bank-financed, the timeline is longer than a cash close — typically 30-60 days depending on loan type and appraisal scheduling. Sellers who need to close in seven days will find a WBH franchise faster. But sellers who have even four to six weeks and want to keep significantly more equity will find the CFD structure more favorable.

The property is sold AS-IS. The seller does not make repairs, does not clean out, and does not stage. The bank-financed buyer accepts the condition of the property at the time of contract. CFD's fee is a separate line item on the closing statement — the service is free to the seller. All closings are handled through Title Guaranty of South Florida, which is a licensed Florida title company with full escrow and disbursement authority under F.S. Chapter 627.

Price Comparison: What Florida Sellers Actually Net Under Each Model

The right comparison between a WBH franchise and Cash Flow Deals is not the gross offer — it is what the seller walks away with after all costs, fees, and deductions at closing.

Under a WBH-style franchise or wholesaler offer in Florida, the offer itself is the net to seller. There are typically no commissions, no seller-paid closing costs, and no repairs required. But the offer is calculated to give the investor their margin, meaning sellers typically net 50-70% of what the home would sell for on the open market after renovation. On a home with a $350,000 market value, that is a range of $175,000-$245,000.

Under the traditional MLS, a seller might net 90-97% of market value before costs, then subtract a buyer's agent commission (2.5-3%), a seller's agent commission (2.5-3%), seller-paid closing costs (1-2%), and repair credits negotiated after inspection (0-3%). On a $350,000 home in listed condition, net proceeds after a full MLS sale might land in the $305,000-$325,000 range — but only if the home qualifies for the MLS, the seller has time to list, and the property survives inspection without major renegotiation.

Under the CFD novation model, the seller receives 85-95% of market value with no repairs, no commissions, and no cleanout. On a $350,000 home, that is a range of $297,500-$332,500 — significantly above what a WBH franchise pays, and comparable to a traditional MLS net on a clean home, without the listing period or re-trade risk.

These ranges are illustrative based on how each business model works, not a guarantee of any specific outcome. Every property is different. CFD provides a specific written offer after evaluating the individual property, and that price is locked at signing.

Florida Seller Rights: What You Should Know Before Signing Any Contract

Florida law gives sellers meaningful protections — but only if sellers know to invoke them. Before signing any purchase contract with a WBH-style buyer, wholesaler, or any cash investor, Florida sellers should understand the following.

First, a signed real estate contract in Florida is binding. Florida is not a three-day-right-of-rescission state for real estate transactions the way it is for certain consumer contracts. Once you sign a purchase and sale agreement, you are bound by its terms unless the contract itself provides an exit. Read every contingency, every inspection period, and every cancellation clause before signing.

Second, the inspection period is the buyer's period, not yours. The buyer can cancel; the seller typically cannot cancel during the inspection period without penalty unless the buyer defaults.

Third, title searches are required for a clean transfer. Under F.S. §627.7843, a title insurance commitment must be issued before closing. If a wholesaler is rushing you to close without title insurance, that is a warning sign.

Fourth, Florida's Seller's Property Disclosure (SPDS) is required for most residential sales under F.S. §689.261. You must disclose known defects. This protects buyers — but it also protects sellers from post-closing claims when disclosures are made properly.

Fifth, if anyone pressures you to sign without letting you consult a real estate attorney, that is a warning sign. Florida attorneys who review residential contracts typically charge $300-$600 for a contract review — money well spent before committing to a transaction that determines how much equity you keep.

Cash Flow Deals structures transactions through Title Guaranty of South Florida with full title search, proper escrow, and a closing disclosure that shows every fee, every deduction, and every disbursement. The seller sees exactly where their money goes before they sign anything at closing.