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. We run one of these companies, so treat this as an insider view, not a neutral one, and read accordingly.

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. Whichever path fits your home, we walk through it with you before you sign anything so there are no surprises later.

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

It is usually the wrong choice when the home is in great shape, the market is warm, you have three months of runway, and no pressing situation. In that case, list it. You will almost certainly net more.

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, deposit, closing date, and financing terms
• Willingness to close through your real estate lawyer
• No pressure to sign the same day, and no penalty for taking 48 hours to think about it
• Straight answers about how they arrived at the offer
• Comfortable with you getting a second opinion from an agent or another buyer

Red flags

• Verbal offers only, or offers that change once the paperwork appears
• Hidden assignment: the buyer plans to reassign the contract but does not tell you, or buries it in the fine print
• Large deposit demands from you
• "Sign today or the offer disappears" tactics
• Refusal to name the actual purchasing entity
• No professional address, no track record, no online presence
• 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: You review with your lawyer, negotiate any terms, and sign.
• Closing: As soon as 7 days out, or up to several months, depending on what works for you. Funds hit your account through your lawyer at closing.

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. Will you be closing on this yourselves, bringing in a partner investor, or assigning the contract? Any of those can be fine, you just want it stated up front.
2. Who is the legal purchasing entity on the agreement?
3. What is the deposit, and when does it become non-refundable?
4. What are your conditions, and how long do they last?
5. What happens if you cannot close on time?
6. Are you comfortable with me having my lawyer review this before I sign?
7. How did you arrive at this specific number for my property?

Frequently asked questions