Set of keys on top of a mortgage document - Beachworks LLC

You can probably imagine the following scenario: You’re late for your kid’s event and you’re stuck behind what must be the longest red light in the entire Seattle area. Frustrated, you look around for a sign, any sign, that you’ll make it. Then, you see it. It’s not a sign of your fate, but rather, a large red cardboard sign with “We buy houses in any condition!” written in puffy paint.

For many, these signs seem too good to be true. After all, who wants a boarded-up house that deserves be scorched (or perhaps already has been?) You may write it off as a scam right then and there and continue on your way. You could be right about that. However, while puffy paint signs might not scream professionalism, not everyone who advertises “we buy houses” is a scam.

Whether you’re thinking about selling and considering your options or just curious about the legitimacy of these companies, here are a few ways you can identify a “we buy houses” scam and avoid being ripped off.

1. You don’t get an estimated offer forthright

At the beginning of the process, a legitimate real estate investor will do some preliminary research on your home to come up with an estimated offer up front. This way, you can decide whether you’d like to move forward with the process or find a new solution.

If you don’t get the estimated offer first, then it’s possible that your contact isn’t serious about purchasing your home, and you may end up in a scam. The investor will just need your address to start the process. From there, the in-person evaluation will solidify the estimate and an official all-cash offer will be written up.

2. There’s no in-person evaluation of your home

Once the initial offer has been made on your home, the next step is the evaluation. The evaluation will allow you to meet your contact face-to-face and have a conversation about your options. Additionally, the investment professional will use this opportunity to make any adjustments to the original offer based on the state of the home.

A scammer may or may not go through the trouble of an in-person meeting. Instead, they may ask you to sign a contract based on a phone conversation. If this happens, stop the process and do more research on the company before signing anything. To be sure you’re talking to the right people, ask them if you can call them back, and call the publicly available number on their website or business card. If you’re convinced it’s a “we buy houses” scam, keep reading.

3. They ask for fees up front

When a legitimate investor buys your home, you’re the one who gets money – not the other way around. To review the process, once you show interest in receiving an offer on your home, the professional will send you a preliminary offer on your home based on the information they have available. From there, they will perform an evaluation and make any necessary changes to the original offer. Once it’s been accepted on both ends, you will receive your check, close, and move on.

If you’re asked to pay application or credit processing fees, especially at the beginning of the process, then the likelihood is the recipient is going to take off with your money. In fact, if you’re signing anywhere on the front of a check, you may be getting scammed. Before sending off that check, keep reading to understand what to do when you encounter a scammer.

Related Article: The Pros and Cons to Selling Home As Is Versus Fixing It Up

What To Do If You Encounter a We Buy Houses Scam

Before you give any personal information or money to anyone, ask yourself: is this likely to be a scam? These signs are one way to tell whether you’re about to be scammed, but the game is always changing and some scammers are getting good at hiding their techniques.

If you think someone is trying to take advantage of you, the best thing to do is hang up (if they’re on the phone) and report them immediately. You can report scammers to places like the Better Business Bureau (BBB) and the Federal Trade Commission (FTC).

How to Avoid Being Scammed

The first step is to make sure you do plenty of research on any future companies you decide to work with, should you decide to continue selling through an investor. There are many reputable investment companies who can help you out and truly will buy your home with all-cash and a flexible close.

Another thing to keep in mind is to always understand what you’re signing. Some scams may seem legitimate until after closing when you realize they’ve performed a contract “bait and switch”, or added changes to your contract in their favor, expecting you to skim and sign.

You’ll also want to make sure that you get all agreements in writing. These are much more viable in court than verbal agreements, where it’ll all come down to he-said-she-said.

Finally, if something just doesn’t feel right, just walk away. If a deal sounds too good to be true, it probably is. If you find yourself in a situation with an offer that’s a hundred-thousand dollars more than any other and offers more flexibility, take a closer look. Listen to your gut.

When looking at more reputable companies, keep in mind the kind of people you’d like to work with. Although large companies have a strong brand presence, the smaller reputable local companies can be a better bet for both your money and your local community. Local real estate investment companies, such as Beachworks LLC, are much more likely to understand your neighborhood and the true value of your home based on its location, as well as the physical state of your home.

Get started with a local, family-owned company based right here in the greater Seattle area. Request an all-cash offer on your home today and skip the possibility of a “we buy houses” scam altogether.

Beachworks LLC local, family-owned company in north Seattle committed to improving the value of our community. For those who need to sell their homes quickly and privately, we we provide an all cash offer and close on your timeline.

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How to Identify a We Buy Houses Scam
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How to Identify a We Buy Houses Scam
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Whether you’re thinking about selling and considering your options or just curious about the legitimacy of these companies, here are a few ways you can identify a "we buy houses" scam.
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Beachworks LLC
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5 responses to “How to Identify a We Buy Houses Scam”

  1. […] Related Article: How to Identify a We Buy Houses Scam […]

  2. […] What if you want to save on commissions but need to sell quickly? Or, maybe your home just isn’t in the best condition to sell as is and the idea of renovating and cleaning it up overwhelms you? Fortunately, there is one more option: selling to a trusted real estate investor. […]

  3. […] As you can see, this process can take a lot of time and money to do correctly. Yet, it’s an important step if you want to make sure your house doesn’t sit on the market for months without getting even one potential buyer. The only other way to sell your house quickly without having to put in the time and effort to prep your house would be to sell it as-is to a local investment company. Just be careful to make sure you don’t get stuck in a scam. […]

  4. […] 4. What is their reputation? Ask to see testimonials. A legitimate individual or company should be able to provide a few reviews from past clients about their experience. The Better Business Bureau, Google, Facebook and real estate specific sites are a few places to check if you’re concerned their reputation is not great. If they have no reviews at all, or a lot of negative reviews, that can be a red flag and may require you to dig further for information.Related Article: How to Identify a “We Buy Houses” Scam […]

  5. […] Related Article: How to Identify a “We Buy Houses” Scam […]

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