“We Buy Houses”: Ripoff or Speedy Sale?

✏️ Editor’s Note: Realtor Associations, agents, and MLS’ have started implementing changes related to the NAR’s $418 million settlement. While home-sellers will likely save thousands in commission, compliance and litigation risks have significantly increased for sellers throughout the nation. Learn how NAR’s settlement affects home sellers.

Home sellers on average lose between $10,000 to $50,000 in cash due to hidden fees in the form of we buy houses ripoffs. In fact, some “We Buy Houses” deals turn out to be scams, causing financial strain and emotional distress.

Selling a house can be stressful. If you want a quick sale “We Buy Houses” companies can seem like a lifesaver. However, it’s important to stay vigilant against potential scams to safeguard your finances.

Consider listing your property on a reputable cash buyer marketplace. Platforms like Houzeo.com connect you directly with a network of cash buyers. This safeguards you from fraudulent activity associated with cash transactions.

What are “We Buy Houses Ripoffs”?

The “We Buy Houses” slogan itself isn’t inherently bad. It’s a marketing strategy used by real estate investors who specialize in buying properties for cash. However, some companies exploit this approach and target distressed homeowners.

“We buy houses” slogan when used unethically can lead to rip-offs by exploiting sellers, employing deceptive tactics, and causing financial harm. It’s important to note that not all “We Buy Houses” companies are scams. There are reputable cash buyers who offer a legitimate service.

Top 5 We Buy Houses Ripoffs or Scams

Here are some common scams for you so you can be on your guard.

• Upfront Fee: Some companies promise quick sales but want money upfront. This could be a sign of a ripoff, especially if the deal sounds too good to be true.
• Equity Skimming: Individuals or companies target homeowners in financial distress. They offer to “rescue” them by taking over their mortgage payments. But ultimately stripping away equity from the property.
• Foreclosure Relief Scams: Some companies prey on homeowners facing foreclosure. Scammers promise to save homes for a fee but often do nothing to help.
• Wholesaling: Some wholesalers engage in unethical practices by tying up properties under contract. They resell the contract to a new buyer at an inflated price, often without disclosing major property defects or problems.
• Email Phishing: Scammers send fraudulent emails posing as legitimate real estate agents, title companies, or lenders. They attempt to trick recipients into wiring money or providing sensitive personal information for non-existent services.

How to Avoid “We Buy Homes” Scams?

You’ve already discovered various scams that lurk within the market. Now, let’s uncover signs to spot these scams and keep yourself clear.

1. Avoid Any Offer That Is Too Good to Be True

Reputed cash home buyers offer a fair price that benefits both parties. However, if you receive any offer that is above your asking price, it’s a sign of a step back.

2. Do Not Be Intimidated if They Try to Rush You

Genuine cash home buyers will usually take some time to inspect your property in person, handle the paperwork, and finally offer a fair price.

While on the other hand, scammers will try to rush you through the process. Do not be daunted if someone makes you a promise to purchase your house in just one or two days. Deny any such deal where you are pressurized.

3. Do Not Proceed if They Have No Proof of Funds

Before you make a final deal with a cash house buyer, ask for proof of funds. If the cash-for-house company can’t prove they have sufficient funds to make the purchase, simply walk away.

4. Step Back If They Demand Money for Any Reason

Beware of the scams that manipulate homeowners into wiring funds to the buyer under pretenses. Avoid if they request money through wire transfer. Genuine cash buyers will never ask for money for any purpose.

5. Avoid Companies With No Digital Footprints

Before you deal with any cash-for-house company, check their official website, and other credible review sites. If you can’t find information, avoid such buyers. Research thoroughly and look for reviews.

6. Avoid Any Unsolicited Cash Offers

Be cautious and reject any unexpected offers by phone, mail, or email to buy your house before you’ve begun exploring local cash buyers. Trustworthy cash buyers usually advertise their services and allow you to make the first contact.

Alternatives to Companies That Buy Houses for Cash

• List Your Home With a Flat Fee MLS Service: You can get up to 100% of the cash for your home on the open market. High-tech For Sale By Owner websites like Houzeo can help you sell your home for cash!
• Hire a Top Realtor: Good Realtors can help you sell your property within a set timeline. However, the best Realtors will charge a 6% commission. That amounts to thousands of dollars!
• Sell “For Sale By Owner”: Selling your home purely For Sale By Owner implies no access to the MLS. You market your property, conduct market research, manage offers and showings, etc., all by yourself.

Should You Sell to Companies That Buy Houses for Cash?

No, not all “We Buy Houses for Cash” companies are rip-offs. They can be a legitimate option.

Selling to a cash buyer prioritizes speed and ease over maximizing profit. For homeowners needing a quick sale without the hassle of repairs or showings, a cash buyer can be a valuable option. Just be aware you might receive a lower offer than through a traditional sale.

Instead, list your home on America’s #1 cash buyer marketplace – Houzeo. Your listing will be active in less than 24 hours. Moreover, you could receive cash offers from multiple cash buyers, ultimately driving up your final home price.

Check out how Houzeo works in this video:

» Houzeo Reviews: See how Houzeo home sellers save thousands with Houzeo technology and MLS exposure.

Frequently Asked Questions

• Seller