Are “We Buy Houses” Companies Legit in Philadelphia?

If you own a house in Philadelphia, you’ve gotten the postcard, the yellow letter, or the 8am text: “We buy houses — cash, as-is, close in 7 days.” The fair question is whether any of it is real.

Most “we buy houses” companies are legitimate businesses, and Philadelphia regulates them more tightly than almost any city in the country. But the industry attracts bad actors, and this city wrote specific laws precisely because some of them targeted Philadelphia homeowners. Here’s how to tell the difference in about ten minutes.

The scam usually isn’t a fake company — it’s a hidden middleman

Very few “we buy houses” complaints involve someone stealing money outright. The common pattern is quieter: a person signs a contract to buy your rowhome, then assigns that contract to a real investor for a fee. They never intended to buy it themselves. That’s wholesaling, and it is legal — but only if they tell you in writing, and only if they’re licensed.

Two laws set what that has to look like here:

• Philadelphia’s Residential Property Wholesaler law. Wholesalers must hold a city license from the Department of Licenses & Inspections, and must hand you a Homeowner Bill of Rights disclosure at least three days before you sign an agreement of sale — a document that points you to city programs and tells you to research what your house is worth. Sign with an unlicensed wholesaler and you may cancel that agreement any time before closing.
• Pennsylvania Act 52 of 2024, effective January 9, 2025. Statewide, a “wholesale transaction” now falls under the Real Estate Licensing and Registration Act. The contract has to say it’s a wholesale deal, has to tell you that you may consult an appraiser or an attorney, and has to give you a cancellation right — generally until midnight on the 30th day after signing, or until the property transfers, whichever comes first, with any money refunded within ten business days. A contract missing those disclosures can be canceled any time before the property changes hands.

So the real question isn’t “are these companies legit.” It’s “is the person in front of me actually the buyer, and are they licensed?”

Red flags worth walking away from

• They won’t say whether they’re the end buyer. Ask it flat out: “Are you buying this yourself, or assigning the contract?” A direct buyer answers in one sentence.
• Pressure to sign today. A Philadelphia wholesaler owes you three days with that disclosure first. Urgency is a tactic, not a necessity.
• The offer drops after you sign. “Re-trading” — cutting the price days before closing, when you have no time left to find another buyer — is the most common complaint against cash buyers anywhere.
• They ask you for money. A real buyer pays you. You should never be wiring funds or paying “processing fees” to receive an offer.
• They want the deed signed over now, before closing. A legitimate sale transfers the deed at a closing, through a title company, with a settlement sheet you get to read.
• They kept contacting you after you told them to stop. Philadelphia maintains a Do Not Solicit list — sign up online or call (215) 686-4500. Contacting someone on it carries fines up to $2,000 per contact; complaints go to the Commission on Human Relations at (215) 686-4670.

How to check out a Philadelphia cash buyer

• Check the city license. L&I publishes a business license search — look the company up by name and see whether the wholesaler license is current.
• Check the state license. Pennsylvania real estate licenses, and any disciplinary history attached to them, are public at pals.pa.gov.
• Confirm the company exists. Search the entity name in the Pennsylvania Department of State’s business records. An LLC formed three weeks ago deserves a second look.
• Search the contract for the word “assign.” If the agreement lets them assign it, ask whether they plan to — and get the answer in writing.
• Put an alarm on your deed. The Department of Records runs Fraud Guard, a free service that emails you whenever a document is recorded in your name. To report suspected deed or mortgage fraud, call (215) 686-2290.

Before you sell to anyone, know your free options

A lot of people take a cash offer because they believe there’s no other move — back taxes, a mortgage in default, a house that was never legally put in their name. Sometimes that’s true. Sometimes one phone call proves it isn’t.

• Save Your Home Philly Hotline — (215) 334-HOME (4663), weekdays 9am to 5pm. Mortgage foreclosure, tax foreclosure, tangled title.
• Community Legal Services — (215) 981-3700. Free legal help for lower-income Philadelphia homeowners, including agreements of sale you wish you hadn’t signed.
• PA Attorney General, Bureau of Consumer Protection — 1-800-441-2555.
• If a sheriff sale already happened and there’s surplus money owed to you, claim it through the Sheriff’s Office directly — you don’t need to pay a “finder” a percentage of your own money.

We’d rather you make that call than sell to us in a panic. If a program keeps you in your house, that’s the better outcome, and we’ll say so.

What a straight answer looks like

We’re Liberty Pathway Homes, and we buy houses in Philadelphia. No fees, no commissions, no repairs, no cleanout — leave behind whatever you don’t want. A fair cash offer, usually within 24 hours, and you pick the closing date. If we’re not the right fit, we’ll tell you instead of stringing you along.

Ask us every question on this page. For the math behind an offer, read how much cash buyers actually pay in Philadelphia, or weigh a cash offer against listing with an agent. Our buying process and what past sellers said are both on the site.

This page is general information about how selling a house works in Philadelphia — it is not legal advice. For guidance on your specific situation, talk to an attorney.

Want a real number, with no pressure and no obligation? Get your fair cash offer today, or call or text us at (215) 515-7799.

Once you’ve vetted the buyer, the next question is usually how quickly this can realistically be done. Our complete guide to selling a house fast in Philadelphia covers the real timeline, the City payoffs that set the floor on it, and the documents to gather first.

Frequently Asked Questions

Are “we buy houses” companies legit in Philadelphia?

Most are real businesses doing a real transaction. The risk isn’t usually a fake company — it’s a middleman who signs a contract with you and assigns it to someone else for a fee without saying so. Philadelphia requires those wholesalers to be licensed by L&I, and Pennsylvania’s Act 52 (effective January 9, 2025) requires the contract to disclose a wholesale deal and give you a cancellation right. Ask whether the person is the end buyer, then verify the license.

How do I know if I’m talking to a wholesaler instead of the actual buyer?

Ask directly: “Are you buying this house yourself, or assigning the contract to someone else?” Then read the agreement for the word “assign.” A Philadelphia wholesaler also has to give you a Homeowner Bill of Rights disclosure at least three days before you sign — if no such document appeared, that tells you something.

Can I cancel a contract I already signed with a cash buyer?

Often, yes. If you signed with an unlicensed wholesaler in Philadelphia, you can generally cancel any time before closing. Under Act 52, a wholesale contract usually carries a cancellation right through midnight on the 30th day after signing or until the property transfers, whichever comes first, with any payments refunded within ten business days. Call Community Legal Services at (215) 981-3700 to review what you actually signed — this is general information, not legal advice.

Do legitimate cash home buyers charge fees or commissions?

No. A real cash buyer makes money on the house, not on you. There are no listing fees, no agent commissions, and no charge for an offer. If anyone asks you to send money to get an offer or to “release” your funds, stop and walk away.

How do I stop the “we buy houses” letters, calls, and texts?

Sign up for Philadelphia’s Do Not Solicit list at phila.gov or by calling (215) 686-4500. Wholesalers who contact someone on the list can be fined up to $2,000 per contact, and you can file a complaint with the Commission on Human Relations at (215) 686-4670. You can also tell any individual buyer in writing to stop contacting you.

Is Liberty Pathway Homes a wholesaler?

Ask us and we’ll tell you straight — that’s the whole point of this page. We buy houses in Philadelphia with no fees, no commissions, no repairs, and a closing date you choose. Call or text (215) 515-7799, or request your cash offer and we’ll walk you through exactly how the deal would work.