Scammers targeting homeowners through deceptive practices with "we buy houses" offers

From Yahoo Finance: 2024-09-13 14:16:00

"We Buy Houses" signs, online ads, and text messages are common ways cash buyers try to purchase homes. ProPublica’s investigation into HomeVestors revealed deceptive practices. State AGs are now scrutinizing the industry, leading to new regulations like HomeVestors’ three-day cancellation policy. Legitimate cash buyers exist, including REITs, iBuyers, and real estate investors.
Be cautious of scam signs when selling your home. Scammers ask for upfront money, push for title transfers, offer no earnest money, or include walk-away conditions in contracts. If you need to sell quickly due to financial struggles or other reasons, consider cash buyers. But be aware they may offer below-market prices to make a profit.
Cash home buyers may purchase homeowner contact lists to find potential sellers. Research local buyers, like HomeLight Simple Sale®, Offerpad, and Opendoor. National brands like Zillow and Redfin previously offered iBuyer services but have since discontinued them. Use multiple automated valuation models (AVMs) to get an accurate estimate of your home’s value.