How to Avoid “We Buy Houses” Scams: 9 Red Flags

Most cash home buyers are legitimate businesses. But because sellers are often under pressure, this industry attracts some bad actors too. Whether you work with us or someone else, here’s how to protect yourself.

9 red flags

1. They ask you for money. A real buyer never charges you application, processing or “consulting” fees to buy your house.
2. They pressure you to sign today. A good offer will still be there tomorrow. High-pressure tactics are a warning sign.
3. They won’t explain their offer. You should be able to get a clear breakdown of how they arrived at the price.
4. They want you to sign over the deed before closing. Never transfer ownership outside of a proper closing with a title company or attorney.
5. They promise to “save your house” for a fee. Foreclosure rescue scams often take upfront fees or the deed and leave the homeowner worse off.
6. There’s no real company behind them. Look for a business name, a working phone number, reviews and a history.
7. The contract lets them walk away for any reason, for a long time. Long inspection periods with easy exits can tie up your house while they shop it to other buyers.
8. They cut the price at the last minute. Some buyers offer high, then renegotiate after you’ve stopped talking to anyone else.
9. They won’t use a title company or attorney. A legitimate sale closes through a licensed title company or real estate attorney who handles the money and the deed.

How to check out a cash buyer

• Read their Google, Facebook and BBB reviews
• Ask how long they’ve been in business and how many houses they’ve bought
• Ask for proof of funds
• Ask who the title company or closing attorney will be
• Have your own attorney review the contract if anything is unclear

Our commitments

We’ve been buying houses for 20+ years and have purchased 500+ homes. We never charge fees, we pay all closing costs, we close through a licensed title company or attorney, and we’ll explain exactly how we arrived at our offer. You can read our reviews and check us out with the BBB before you ever talk to us.