“We Buy Houses” Scams

How to spot “We Buy Houses” scams and avoid them

There are many reasons why a home owner would want to sell your house fast. Job change, relocation, debt problems, divorce and inheritance are just a few. Unfortunately, people in need also tend to attract predators who have no problem profiting from someone else’s misfortune.

If you’re looking to sell your house fast, here are a few scams to be on the lookout for and how to avoid becoming a victim yourself.

Contract Bait and Switch

In a contract bait and switch you agree to a verbal offer but then when it’s time to sign the written offer, it’s nothing like your verbal agreement.

Liberian FSBO

A person outside the U.S. contacts you after seeing your house on Craigslist or a For Sale By Owner site, telling you that he is looking to move to the U.S. soon and can pay cash for your home. His story is compelling to the point that you actually feel good about helping him out — not to mention being able to sell your home.

Ultimately, though, his only goal is to get you to transfer him money and/or to get access to your bank account so that he can transfer the funds himself before you realize what has happened. And because he is outside the U.S., recovering your money can be next to impossible.

How to Protect Yourself from Scams

If you need to sell your house fast, here are a few rules for protecting yourself from falling prey to a scam like these.

Only Work with Professionals

The best way to protect yourself from scams is to work only with professionals who have an established history of home buying.

Check Out the Buyer

If you have any concerns about the buyer, don’t hesitate to check them out. Contact your state’s Real Estate Commission. If they are an established business, also check out the Better Business Bureau.

Always Understand What You’re Signing

Not asking questions because you are afraid of looking stupid could end up costing you tens of thousands of dollars or more if you end up in a deal that wasn’t what you thought it was. A lawyer or even your mortgage company can help you if you want professional advice from a third party. Never, ever sign a contract that you don’t understand.

Get All Agreements in Writing

If a disagreement arises about a verbal agreement, the issue becomes your word against theirs and often must go to a court of law to be settled. Don’t risk that. Insist that all terms be in writing, and don’t agree to anything that isn’t.

Be Willing to Walk Away

If you have any doubts about the buyer or the contract — or if it just doesn’t feel right — just walk away. It’s never worth the months (and maybe years) of future headaches to sell your house a few days sooner.

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