Tips to Avoid Cash Home Buyer Scams

Just like in every other industry that exists today, scammers are present in the cash home buyer realm. Since scammers are present, it’s important to know the red flags to watch out for and how to ensure you are dealing with a legitimate, honest real estate investment company. 

Common We Buy Houses for Cash Scams

If you want to sell your home or property to a cash buyer, you are putting yourself at risk for a scam. You must understand how a cash offer scam works and how you can avoid these unscrupulous individuals.

If possible, consider working with a real estate agent to help you find the red flags before you get scammed. Keep reading to learn how to avoid these types of scams. 

Check the Company’s Reviews 

When using a cash buyer for selling your home, it’s important to do plenty of research. There are a few ways to determine how reliable the potential buyer is. 

Be sure that you learn as much as possible about the company you plan to work with. Look at their website, read customer reviews, and even reach out to prior clients. 

Searching on Google isn’t enough to provide you with enough information to decide. You should see if they are listed on the industry directories and if the company’s information is consistent. 

Visit the Company’s Website

Another method you can use to avoid a scam is by looking at the company’s website. If they have a nice-looking, professional, and easy-to-navigate website. Be sure to navigate across the site and see what information they have available. 


Your intuition or gut instinct plays a role in this element. If you find the person you speak to is able to answer your questions without delay, they are probably trustworthy. If they seem unprofessional, can’t answer your questions, or don’t have the right answers, you should probably look elsewhere for a home buyer. 

Finding Legitimate Cash Home Buyers 

Today, using a company that pays cash for houses is one of the most popular ways to sell a home without a realtor. However, it is best to use caution when you take this route. Most buyers are flippers or wholesalers who want to purchase a distressed property at a low price. 

In some cases, this is going to work in your favor. Traditional homebuyers don’t want to purchase a distressed property (in most cases). A private cash buyer takes all the risk and gives you money right away. Just make sure you are transparent with the buyer and work with a reputable company. 

Using a Cash Buyer to Sell Your House

There’s no question that a cash buyer can be a great way to sell your house quickly. While this is true, you need to ensure you take the right steps and find a buyer who is not trying to scam you. The tips above provide you a good starting point to do this and begin the process of selling your home.