You might see “We Buy Houses” advertisements around your city and wonder if they are a scam or if they will give you a fair deal. These businesses, often called cash-for-houses buyers, offer a quick alternative to traditional home selling. They purchase homes for cash, often handling necessary repairs themselves. However, the urgency of homeowners sometimes gets exploited by unscrupulous buyers who dangle the promise of fast cash, but tack on hidden fees or use unethical practices.
While cash home buyers can be a convenient option for a homeowner who wants to sell their house fast, it’s important to do your due diligence and ensure that you’re working with a reputable company. At Florida Cash Home Buyers, we pride ourselves on honesty and transparency. Learn more about our ethics by visiting our About Us page and get a free, no-pressure offer by requesting a quote today.
Whether you work with us or not, we want to help you identify potential “We Buy Houses” scams and make informed decisions. This article will help you identify red flags, avoid identity scams, and figure out if your cash for homes company is the real deal.
Are “We Buy Houses” Companies a Rip-Off?
Some “We Buy Houses” companies will rip you off and take advantage of you, but there are legit businesses out there too, like Florida Cash Home Buyers.
We perform our due diligence and promise to tell you if a cash home sale isn’t the best option for you. For example, if you have a turnkey home that you can sell at or above market rate, a cash home buyer may not be the way to go. However, if your home needs a lot of work and the repairs are too costly or time intensive, selling to a cash home buyer like us may be the right move.
We pride ourselves on being transparent about how our process works and how we calculate legitimate cash offers. If you’re curious about how much you’ll lose selling a house as-is, read our in-depth article which breaks down different scenarios and covers the pros and cons.
Ultimately, the short answer is this: While not all “We Buy Houses” companies are rip-offs, there are scammers out there who might take advantage of sellers in a financial bind.
Common Cash-for-Houses Scams and How to Avoid Them
Selling a home can be overwhelming enough. The last thing you want to have to think about is the threat of losing it all to a scam. Luckily, these common red flags can help you identify a we-buy-houses-for-cash scam.
Upfront Fee Scam
One common scam involves upfront fees. Scammers may request payment for property repairs or as a deposit before purchasing your home. Legitimate “We Buy Houses” companies won’t demand upfront fees and will be patient with your timeline.
Be wary of any home-buying company that pressures you into quick decisions, is unwilling to provide references, or cannot verify their financial capabilities. Reputable buyers, like Florida Cash Home Buyers, offer transparency and flexibility.
We are a Florida Limited Liability Company, fully registered and compliant with Florida law, and we provide free, no-obligation offers and even offer cash advances in some cases.
Email Phishing
Be cautious of email offers, as some scammers use phishing tactics to target sellers. Phishing emails appear to be from legitimate sources, often mimicking the name, email address, and signature of a trusted “We Buy Houses” company. These scam emails aim to steal your personal information through fake websites or login portals. They might also request financial details or pressure you into upfront payments via wire transfer.
Warning signs of a phishing email include:
- Suspicious links or attachments
- Grammatical errors and typos
- A sense of urgency or threats
- Email domain mismatch (e.g., email from “floridacashhomebuyers.com” with a “@gmail.com” address)
- Generic greetings like “Dear Homeowner” instead of addressing you by name
If you get a suspicious email offer that has these red flags, don’t open it, click on any links, or download attachments. Delete it immediately. Consider changing your email password and other affected passwords as a precaution.
If unsure about an offer’s legitimacy, avoid responding to the email directly. Instead, search for the company’s official website or social media profiles to find contact information. Contact them directly through those verified channels to inquire about the offer.
Remember, a reputable cash-for-homes company is unlikely to approach you with an offer that seems too good to be true.
For Florida Cash Home Buyers specifically, you can always call us at (954) 519-7040 or email us at info@FloridaCashHomeBuyers.com to verify the authenticity of any suspicious emails claiming to be from our company.
Foreclosure Relief
A mortgage is a loan agreement between you and a lender. If you can’t or don’t repay the loan, they can repossess your home through a process called foreclosure. From there, they’ll usually sell the property to pay off the mortgage.
Getting your home foreclosed on is incredibly stressful to say the least — meaning it’s ripe for scammers to prey on. Keep in mind that your mortgage is between you and your lender: Only your mortgage servicer has the discretion to modify the terms of your loan.
Third-party “foreclosure relief” companies might promise to do this — even going as far as to say they have direct contact with your mortgage services — but they can’t. It’s always a scam. They’ll just charge you a fee and never deliver on their promises.
Some cash-for-homes scams will even try to get you to sign over control of your home to them. So you’d not only lose your rights to your home, but you’d also still be responsible for your mortgage payments.
Beware of foreclosure scams that:
- Charge upfront fees for mortgage modification services
- Offer money-back guarantees
- Advise you to stop making mortgage payments
- Claim to perform a “forensic audit” of your loan
Legitimate “We Buy Houses” companies can’t modify mortgage agreements. At Florida Cash Home Buyers, we can provide a quick and hassle-free solution by purchasing your home as-is before the auction. If you’re facing foreclosure, contact us for a no-obligation cash offer.
Equity Skimming
Home equity is the difference between your home’s value and your mortgage balance. As you make mortgage payments, your equity gradually increases. Equity skimming occurs when someone convinces a home seller to sell their home for less than its market value, often under false pretenses.
Scammers targeting homeowners facing financial difficulties often employ equity skimming tactics. They might propose a lease-to-own arrangement where you continue living in the home but lose ownership and equity. The scammer collects rent payments but fails to make mortgage payments, eventually losing the property to foreclosure.
Red flags of equity skimming scams include:
- A buyer agreeing to purchase your home without a proper inspection.
- Receiving an “I owe you” note instead of actual payment.
At Florida Cash Home Buyers, when we buy homes, we offer fair prices based on a property’s current condition. We’re transparent about how we calculate our offers and strive to create mutually beneficial transactions.
What to Do If You Encounter a “We Buy Houses” Scam
If you suspect you’re a victim of a “We Buy Houses” scam, immediately stop all communication with the scammer. Contact your local authorities or state attorney general to report the incident.To help prevent future fraud, report the incident to the Federal Trade Commission (FTC), Consumer Financial Protection Bureau (CFPB), and Better Business Bureau (BBB). These agencies can provide guidance on protecting yourself from similar scams.
How to Know If a “We Buy Houses” Company Is Legit
Not all “We Buy Houses” companies are scams. Many legitimate businesses offer a convenient and quick selling process. These companies often have the financial resources and connections to purchase homes as-is and handle repairs.
If you need to sell your home quickly or it needs a lot of repairs, a cash home buyer might be a good option. But keep in mind that you’ll likely receive less than the full market value (the purchase price you may get on the open market) for your property. The final offer will factor in the cost of repairs and other fees that cash home buyers have to pay.
If you’re considering doing business with a “We Buy Houses” company, use the following questions to vet them:
- Do they have a legitimate website with an “About” page?
- Do they have good customer reviews?
- How long have they been in business?
- Are they accredited by the Better Business Bureau?
- Do they have a business location and phone number?
- Are they knowledgeable in repairs?
- Are they able to share proof of funds with you or evidence they have the money for a down payment?
A good company will cover all the closing costs that you would normally pay when selling through an agent. Some won’t even charge any fees or commissions.
Before doing business with any “We Buy Houses” company, make sure you have a thorough understanding of your contract’s terms, including any contingency clauses that might allow them to back out of the deal if certain conditions aren’t met.
Sell to Credible Cash Home Buyers
At Florida Cash Home Buyers, we understand that life can throw unexpected curveballs. Whether you’re facing foreclosure, relocation, property repairs, or simply need to sell fast, we offer a quick and hassle-free solution. Our cash offers eliminate the stress of traditional home selling, allowing you to move forward on your terms.
We pride ourselves on transparency and honesty. Our goal is to provide you with a fair cash offer and a smooth closing process, over and done with in just 15 to 30 days. Let us handle the complexities while you focus on what matters most. Contact us today for a no-obligation cash offer.