DON'T GET SCAMMED BY FAKE HOME BUYERS. 

Selling a house can be a stressful and time-consuming experience. From choosing a reliable agent to enduring long waits for potential buyers, the process can feel like a nightmare. Unfortunately, the fast cash home buying industry has also attracted scammers looking to exploit homeowners in need of quick sales.

While some “we buy houses for cash” companies are legitimate and offer homeowners a convenient way to sell their property quickly, some operate with unethical practices that can leave sellers vulnerable.

Here’s how to spot and avoid "we buy houses for cash" scams:

Red Flag Language in the Contract

The simplest give-away that you are dealing with a fake home buyers is that the contract will read you are agreeing to sell your home to "ABC Home Buyers and/or assigns."  This "and/or assigns" verbage is a clear indication you are working with a middleman who has no intention of buying your home.  They want to tie it up for several weeks while they try to find a REAL buyer to eventually close. This is extremely unethical and frustrating, since very often the are unable to find a real buyer. If you see the words "and/or assigns" next to the buyer's name, walk away. 

False Registration Information

Scam companies often provide misleading details like fake addresses, phone numbers, or VAT registration. Before engaging with a home-buying company, take time to verify their information. Run a quick Google search to check the company’s legitimacy. If anything feels off, trust your instincts and look elsewhere.

Watch Out for Upfront Fees

Legitimate cash home buyers will never ask for upfront fees. Some scammers may claim they need "processing" or "deposit" fees, but reputable companies don’t operate this way. These companies make money by actually buying homes, not by charging sellers for miscellaneous services.

Deed Transfer Scams

Never transfer the deed before your mortgage is fully cleared. Some shady companies might claim holding the deed can speed up the process. Once the deed is transferred, you lose significant legal control over the property, putting you at risk of losing your home without proper compensation.

Verify the Website

A professional-looking website doesn’t always guarantee legitimacy. Check how long the site has been active and whether it’s updated frequently. Ensure that a legitimate company registration number is displayed. If this information is missing or difficult to find, be cautious.

Proof of Funds

Any legitimate company that buys houses for cash should have sufficient liquid assets. Always ask for proof of funds (IN THEIR NAME) before proceeding. If a company hesitates to provide this or provides on from  a "partner" of theirs, it’s a red flag that they might not have the financial ability to close the deal. Many seminar companies provide "proof of funds" letters to their students which have no value in determining the buyer's ability to close.

Beware of Bad Valuations

A major benefit of selling your house for cash is the speed of the transaction, but don’t let a company undervalue your property. Compare the offer to recent sales in your area and consider getting an independent valuation from a surveyor. If their offer is significantly lower than market value, proceed with caution.

Lock-In Contracts

Avoid signing contracts that lock you into the deal or penalize you for canceling. Some companies include cancellation or withdrawal fees to profit from sellers rather than buying homes. Make sure to read the fine print and avoid any deal that seems overly restrictive.

Unrealistic Promises

“If it sounds too good to be true, it probably is.” If a cash buyer claims they can purchase your home for close to market value—around 90-95%—be wary. The reason they can buy houses quickly is often because they are buying them at discounted prices.

Last-Minute Price Drops

Some scammers will offer an attractive price initially, only to lower the offer at the last minute, blaming "market conditions." By this stage, they’re banking on your emotional or financial investment in the process, hoping you’ll accept the reduced offer out of convenience or frustration.

Trust Your Instincts

If something doesn’t feel right, it’s worth investigating further. Seek advice from a real estate professional if you have concerns about a potential deal. Trusting your gut can save you from a bad experience.

Are you looking to sell your house for cash? Hurry Home Buyers can help. We buy houses fast and for cash, providing you with a stress-free, legitimate solution. Fill outt the form below to get started.