Ways to Avoid Home Buying Scams

When you are selling your home, you are under a lot of pressure. You may need to sell your home quickly because you are relocating for work. You might need to sell the house to avoid foreclosure. You might have found a great deal on another home and do not want to miss out on that opportunity. 

No matter the reasons, you need to avoid home buying scams. Real estate industry fraud has been growing in recent years. So, whether you are selling or buying a home, it is crucial that you understand these scams and how to avoid them. 

Common Real Estate Industry Scams

#1: Home Inspection Scam

Home inspection scams involve people pretending to be home inspectors. They charge you an upfront fee to inspect the home. While they may show up and do a walkthrough, they often say everything is fine, even though repairs and maintenance need to be completed. 

#2: Home Appraisal Scam

With this scam, the fair market value of the home is either overvalued or undervalued. When the home is overvalued, it makes it much harder to sell the house. When it is undervalued, your home sells faster because it is way below fair market value. 

#3: House Flipping Scam

The house flipping scam goes along with an undervalued home appraisal scam. You receive a cash offer on the home in an attempt for you to sell for much lower. The scammer then flips your home for the actual fair market value. 

#4: Upfront Fee Scam

The upfront fee scam is where someone posing as a real estate professional will want you to pay certain fees upfront. Once you pay the fees, they often disappear with your money in their pocket. 

#5: Wire Transfer Scam

You get a phone call from someone posing as a real estate agent saying they found a buyer for your home and are preparing to wire money to complete the sale. They will attempt to get your financial information like your bank account and routing number. 

#6: Real Estate Attorney Scam

The real estate attorney scam typically targets sellers. You may get a phone call, or someone will show up on your doorstep pretending to be a real estate attorney. The scams can vary, from the pretend lawyer saying they need to collect upfront fees to wanting your contact information for wire instructions for closing costs on the home. 

#7: Foreclosure Avoidance Scam

The foreclosure avoidance scam hurts people facing foreclosure. They are often told they can get help with their mortgage payments by refinancing the home for a lower amount. The scammer will attempt to collect an upfront mortgage payment, leaving the person out that money and still potentially losing their home.

A variation of this scam is where the scammer says they buy houses for cash and will purchase your home for cash and pay off the mortgage. To proceed, they need you to send money for closing costs, provide personal information, etc. 

#8: Deed and Title Scam

Deed and title scams are where someone attempts to get the homeowner to sign off their house deed and title. Unfortunately, this scam happens all the time, especially within the senior community. Seniors are tricked into believing that when they sign off ownership, they sign the house over to a potential buyer when, in fact, there is no buyer. 

How to Avoid These Scams

It is becoming increasingly challenging to identify scammers because they are using advanced techniques and technology. They often put pressure on the home seller or home buyer to complete the transaction electronically.

However, by practicing many of the same things you do to protect your personal information and financial information, you can avoid home buying and home selling scams, including:

• Never open emails from email addresses you do not recognize.
• Never give out your contact information online or over the phone.
• Be wary of websites that are not secure.
• Never click links or pop-up ads in emails.
• Pay attention to the sender’s email address—it may look like it is from a trusted real estate industry resource, but, when you look at the physical email address, it is often a weird combination of letters and numbers.
• Only work with reputable home buyers and home sellers that are licensed in your state.
• Don’t sign any documents or forms upfront—these things are done at closing.
• Don’t answer phone calls from unknown phone numbers.
• Never be pressured to act immediately, especially in real estate transactions.
• Be wary of limited documentation transactions.

If anything looks or sounds suspicious and sets off red flags, chances are it is a scam. If you suspect someone is attempting a real estate scam against you, notify your local law enforcement immediately. 

Why You Can Trust 800CashToday to Sell Your Home

When you want to sell your home in Southern California, you need to ensure you work with reputable real estate industry professionals. At 800CashToday, we carefully screen every real estate investor to ensure they are legitimate by conducting an extensive background check on them. 

We connect you with a locally trusted professional who has been around the block and puts the seller first. Our local buyers are friendly and professional, so you can put an end to shopping around and sharing your personal information with various home buyers. 

To learn more about how we can help you sell your home quickly and easily for cash, fill out our contact form on our website today! Do not hesitate to contact us directly if you have any questions or concerns or need assistance, by calling 1-800-CASH-TODAY.