People who wish to sell their home fast often encounter scams like:
- Fake cash buyers and unwanted pressure
- Forged paperwork
- Fraudulent iBuyer or investor companies demanding fees
- Misleading communication leading to high fall-through rates
- Hacked financial transactions
To avoid all these scams when selling your home fast, you should:
- Take your time to verify the buyer’s/buyers’ credentials
- Not pay any fees
- Hire a reputed iBuyer company
- Document all conversations and offers
- Have a real estate lawyer review the agreement and declare it aboveboard
That way, you will be able to ensure that you don’t get cheated on.
Did you know that more than 9300 people became victims of real estate crime in 2024, as per the FBI? This number has only increased in recent years, due to the growth of social media.
Many people, including yourself, sometimes post information related to house sales on social media to attract buyers. However, this is how scammers and fraudsters choose their targets.
They pose as buyers, extract information, and then exploit your urgency through fake offers, forged documents, and pressure tactics. But don’t worry. We’ll help you navigate through these scams smoothly.
We’ll talk about the common kinds of scams you can come across, and how you can avoid them by selling your home to verified cash house buyers in Houston. Continue reading for more information below.
What Are the Most Common Home Selling Scams You Should Be Aware of?
Take a look at some of the common scams that take place when you try to sell your house quickly below:
Fraudulent iBuyer Companies
Unlike genuine iBuyer companies that purchase homes in their present condition, you might come across fake iBuyer companies. These companies might exist only on paper or have a fake address.
You might find that these companies have their own websites as well. However, when you attempt to make a transaction, they will demand fees from you. Most or all, iBuyer companies do not charge fees for such transactions, since speed is of the essence.
So you should be wary if they demand fees from you.
Fake Cash Home Buyers and Unwanted Pressure
As we mentioned, some scammers and fraudsters will express interest in taking your home off your hands. They will do all the right things, like staying in touch with you, asking to view your home, and negotiating cash offers.However, in such instances, they will steal your personal information and then misuse it or sell it on the black market.
Some fraudulent cash home buyers might also pressure you to transfer the property documents. They won’t offer any written communication regarding the offers, but push you to close the sale fast.
Lack of Transparent Communication
This is another trap that people wishing to sell their homes quickly experience. Scammers or fraudsters trap them in never-ending negotiations or unclear communication. They might keep changing their cash offers, and also be unwilling to view your home.
You will also find that these fraudulent buyers utilize a variety of email addresses and offer shoddy paperwork.
Title and Identity Thefts
Another serious issue is that of identity theft. In fact, more than 20% of Americans became victims of identity theft in 2021. Some scammers or buyers might pretend to be someone else, or impersonate genuine buyers.
These scammers often collect data about these genuine buyers through various sources, such as social media and other reputable listing sites.
Alternatively, they might hack your information and use that to create illegal property sale documents. They will create documents to transfer the ownership of your home to themselves.
Home Inspection Scams
Finally, some fraudulent buyers will pretend to be home inspectors and gloss over the imperfections of your home. This non-disclosure of vital information leads to unwanted surprises for cash house buyers in Houston after the sale is closed.
How Can You Protect Yourself From These Scams?
You can avoid these scams in the following ways:
Verifying Your Buyer/Buyers’ or Home Inspector’s Credentials
One of the most obvious things is to first verify your potential buyer, buyers’, or home inspector’s credentials. You can do this by checking with a reputed iBuyer company since they will screen them for you.
In case of your home inspector, you should interview him or her in person. Consider asking questions about their experience, which organization they are affiliated with, and the time the process will take.
Carefully note their responses and be watchful of them:
- Not presenting adequate information
- Wishing to rush through the process
- Promising a report without inspecting your home thoroughly
Ensure that you accompany them throughout the inspection to make sure that they study all aspects of your home.
Monitor Your Property Records
You should keep in touch with your property records office and periodically review your property’s records. Watch out for signs of unexpected or missing bills, like loans, or vital documents like property deeds.In case you find missing documents or additional notices, notify your property records office and local law enforcement immediately. They’ll be able to help you track down the miscreants easily. We would also recommend signing up for an identity theft protection plan.
This plan should also include property-related transactions to alert you if anything like that happens.
Demand Proof of Funds
When fraudulent buyers offer you verbal confirmations of funds, you should always determine whether or not they actually possess those funds. Ask for bank statements, or ask them to transfer a small amount of money to you first for confirmation.
Also, demand an online payment receipt for that small amount. This will help you verify their payment credentials easily.
Remember to document all communication.
Evaluate Too-Good-To-Be-True Offers
One of the core differences between an honest cash offer and a fraudulent one is the fine print. When you sell your home to a legitimate home buyer, they will consider factors like:
- Repair costs
- Renovation costs
- Location
- Market value
- The condition of your home.
After considering these factors, they will offer you a decent price. However, a fraudulent cash buyer will offer you a price that will be higher than that of others. If you find such offers, avoid giving in to them.
Work With A Licensed iBuyer Company
You should always hire a reputed iBuyer company. You can locate such a company by researching and asking your peers. Working with reputed iBuyer companies will ensure that you are able to sell your home to verified cash house buyers in Houston.
Scam vs Legitimate Safe Offer: What’s the Difference?
Let us now quickly take a look at the differences between a legitimate home buying offer and a fraudulent one in the table below:
|
Factor |
Scam/Fraudulent Buyer |
Legitimate Buyer |
|
Buyer Identity |
No ID, vague details | Clear identity, contact info provided |
| Proof of Funds | Avoids or fakes documentation |
Verified bank statement or letter |
|
Viewing the Property |
Refuses, delays, or makes excuses | Visits or sends representative |
|
Fees Requested |
Asks for money before closing |
No seller fees until transaction closes |
| Communication Style | Pushy, urgent, and often vague |
Professional, transparent, timely |
Table: Legitimate Home Buying Offer Vs Scam Home Buying Offer
Speed Shouldn’t Cost You Safety
Selling quickly doesn’t mean you have to cut corners and get scammed. To avoid this possibility, you should verify your buyer/buyers’ and home inspector’s credentials, and hire a licensed iBuyer company.
You should also analyze unrealistic offers, monitor your property records, and demand proof of wire or fund transfers.
Ready to Sell Your House Quickly?
Ideally, this is what selling your house quickly should look like:
Also take a look at our checklist for a quick recap of what you should do when selling your home fast below:
✅ Ask for and verify buyer ID + proof of funds
✅ Never pay upfront fees to a buyer or “agent”
✅ Use a licensed iBuyer company
✅ Document every conversation and offer
✅ Avoid signing anything under pressure
✅ Get contracts reviewed by a real estate lawyer
