We Buy Houses Ontario: How These Companies Actually Work

"We buy houses" signs, ads, and websites are everywhere in Ontario. Some of the companies behind them are excellent. Some are not. This is an honest breakdown of what these businesses actually do, how the money works, when a direct sale is the right choice, and how to tell a good buyer from a bad one.

What "we buy houses" companies actually do

A direct home buyer is a real estate investor or investment company that purchases houses directly from owners, without listing them on the MLS. Most are one of three types:

• Buy-and-hold investors: Keep the home as a rental. They care about long-term cash flow, so they can sometimes pay a bit more on homes in decent shape.
• Fix-and-flip investors: Renovate the home and resell it. They need room in the numbers to cover renovations, carrying costs, and profit, so offers tend to be lower on homes that need real work.
• Wholesalers: Sign a purchase agreement with you and then bring in an end investor to close, usually through an assignment clause. Done transparently, with the seller knowing up front, this is a legitimate way to move a home quickly. Done quietly, it is where the industry earns most of its bad press.

Peritus Properties is an Ontario-based buyer. Depending on the property, we buy and hold, renovate and resell, or work alongside partner investors to close the deal. We keep the process clear and answer your questions at every step.

How offers actually get priced

There is no magic. Every serious direct buyer runs a version of the same calculation. On a typical single-family home:

In practice, most as-is offers on Ontario homes land somewhere in the 65% to 75% range of current as-is market value. Homes in strong condition can push higher. Homes needing significant work, or in slower markets, sit at the lower end. It is not the highest number you could theoretically get on the MLS, and any honest buyer will tell you that up front. It is a fair number for a sale with no repairs, no showings, no commissions, and a closing date you choose.

We break down exactly where the money goes in a traditional sale in The Real Cost of Selling a House in Ontario. That's the honest comparison you should run before deciding.

When selling to a direct buyer is the right move

A direct sale rarely produces the highest headline price. It often produces the best net outcome when the situation includes one or more of these:

• The home needs repairs you cannot afford or are unwilling to manage
• Time matters (relocation, job change, health, family circumstances)
• A power of sale or serious mortgage arrears are in the picture
• Inherited property you do not want to hold or restore
• Divorce or separation where a fast, clean cut is worth more than the last few dollars of sale price
• Tenanted property that would be hard to show or list
• Vacant home costing money every month
• You have already tried a traditional listing and it did not work

Even outside these situations, plenty of homeowners choose a direct sale simply because they value the certainty, the speed, and skipping the whole listing process. There is no single right answer, only the one that fits your home and your timeline.

How to tell a good buyer from a bad one

Green flags

• Actual company address in Ontario, real names, a website that has existed for more than a few weeks
• A written offer with a clear price, closing date, and terms
• Willing to walk you through the agreement in plain language before you sign, at whatever pace you want
• Straight answers about how they arrived at the offer

Red flags

• Verbal offers only, or offers that change once the paperwork appears
• Hidden assignment: the buyer flatly denies they may bring in a partner or assign the contract, then does it anyway without telling you
• Pressuring you to commit before you've had time to review the offer or think it through
• Refusal to name the actual purchasing entity
• Blanket guarantees like "we buy every home, no matter what"

What the process actually looks like

With a serious buyer, from first call to keys, it usually plays out like this:

• Day 1: You share basic details about the property. Buyer asks follow-up questions.
• Day 1 to 3: Short call, sometimes a quick in-person or virtual walkthrough.
• Day 2 to 5: Written offer delivered, with a closing date you choose.
• Day 3 to 10: We walk you through the agreement together, answer questions, adjust any terms, and sign when you are comfortable.
• Closing: As soon as 7 days out, or up to several months, depending on what works for you. Funds hit your account through the closing lawyer.

You are never obligated at any stage until you sign the final agreement. Requesting an offer costs you nothing and locks you into nothing.

Questions to ask any direct buyer before signing

1. Who is the legal purchasing entity on the agreement?
2. What are your conditions, and how long do they last?
3. What happens if you cannot close on time?
4. Will you walk me through the agreement clause by clause before I sign?
5. How did you arrive at this specific number for my property?

Frequently asked questions