Common “We Buy Houses” Scams to Avoid

Selling your home to a "we buy houses" company can be a convenient and stress-free solution, especially if you're looking for a quick sale or don't want to deal with traditional real estate processes. However, not all companies offering to buy homes are legitimate. Some unscrupulous individuals and organizations take advantage of motivated sellers, using deceptive “cash for houses” scams to con individuals out of money or property.

Knowing how to spot these scams and protect yourself is essential. Below, we outline common scams and provide practical tips to ensure your home sale is secure and legitimate.

Signs of Legitimate vs. Scam “We Buy Houses” Companies

Before diving into specific “we buy houses” scams, it's important to understand the difference between legitimate companies and scammers.

Legitimate Companies

• Communicate clearly and professionally
• Have verified Better Business Bureau ratings, reviews, testimonials, or references
• Provide transparent processes and detailed contracts
• Are willing to answer questions and share credentials

Red Flags

• High-pressure tactics or rushed decision-making
• Unwillingness to provide proof of legitimacy, such as business registration or references
• Poor or nonexistent online presence, including no website or fake reviews
• Suspiciously low offers that deviate significantly from a legitimate cash buyer offer

4 Common “We Buy Houses” Scams

1. Bait-and-Switch Contracts

Some “we buy houses” scammers lure sellers with attractive offers but later introduce changes to the contract at the last minute. These changes may significantly lower the purchase price or include hidden fees, leaving the seller with much less than expected. 

To avoid this “cash for home” scam, always take the time to read contracts thoroughly. Consulting a real estate attorney or trusted advisor to review documents before signing can help you catch any unfavorable terms.

2. Equity Skimming

This “we buy houses” scam involves a fraudster convincing the homeowner to transfer ownership of their property while allowing them to stay temporarily. The scammer then collects rent or other payments but fails to pay the seller or mortgage, which often results in foreclosure. 

To prevent falling victim to this scam, never transfer ownership of your property without a clear, written agreement detailing the payment terms and an escrow company to coordinate a secure transaction. Verifying the buyer’s credentials and financial history is also essential to ensure they are trustworthy.

3. Upfront Fees

In this scheme, scammers request that sellers pay for appraisals, administrative fees, or other costs before completing the sale. Once they collect these fees, they disappear, leaving the seller without a buyer or their money. 

To avoid these types of “we buy houses for cash” scams, remember that reputable buyers cover all transaction costs, and you should never agree to pay upfront fees during the selling process.

4. Fake Buyers

Fake “cash for houses” scammers often pose as legitimate homebuyers, using fraudulent checks or other tactics to scam sellers. In some cases, they might try to steal personal information during the process. Protect yourself by verifying the identity of any buyer or company you work with. 

Additionally, using secure payment methods like wire transfers and refraining from sharing sensitive personal or financial information early in the process can safeguard you from this scam.

How to Protect Yourself From “We Buy Houses” Scams

To protect yourself from “we buy houses” scams, start by thoroughly researching any buyer or company, checking reviews, Better Business Bureau rating, and their business history to ensure legitimacy. Avoid sharing sensitive personal or financial information too early in the process, as reputable buyers won’t require it upfront. 

Review contracts and navigate the transaction securely. Always scrutinize contracts for vague language, hidden clauses, or unusual terms, and don’t hesitate to ask questions or walk away if something feels off. Taking these steps can help ensure a safe and successful home sale.

Benefits of Selling to 800CashToday

When you choose 800CashToday, you’re partnering with a company that has a proven track record of success and integrity. With hundreds of properties purchased and counting, we’ve built a reputation for providing homeowners with fair offers and a hassle-free experience. 

Our process is transparent, straightforward, and designed to give you peace of mind. We value your time, which is why we handle everything quickly and efficiently—no repairs, no showings, and no hidden fees. Trust 800CashToday for a fast, reliable home sale that puts your needs first. Contact us today to get started!