In this article, we\u2019ll walk you through the most common home-buying scams, their warning signs, and how to make sure the money from your home sale stays in your pocket.<\/p>\n\n\n\n\n\n
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\n <\/div>\n \n Avoid Scams by Using a Seasoned Agent<\/h3>\n
To avoid house-buying scams and get the most out of your home sale, partner with a top real estate agent in your market. They have the experience to get you safely and smoothly through the process, from prepping your house for sale to getting to closing day.<\/p>\n \n
8 common home-buying scams to avoid<\/h2>\n
The following scams involve fake or devious buyers trying to convince you that they want to purchase your home. We\u2019ve also included one counterfeit seller scam. They may take different approaches, but their end goal is always the same: To cheat you out of your money.<\/p>\n
1. The overseas or foreign buyer<\/h3>\n
This buyer contacts you \u2014 through a website, an email, or even through the mail \u2014 begging to buy your home. They explain that they\u2019re overseas and won\u2019t be back in the U.S. until a certain date, but they really need a place to live. And then, they offer to send you a cashier\u2019s check to secure the house.<\/p>\n
Scammers have been pulling this one for a long time, not just with home-sellers but with landlords, and with high-value items on resale websites. A few days after the cashier\u2019s check shows up and you\u2019ve deposited it into your account they contact you with a sob story about how their plans fell through and ask for a refund. They may even generously offer to let you keep some of the money as an apology, which really is meant to remove any doubts.<\/p>\n
There won\u2019t have been enough time for the cashier\u2019s check to bounce, but bounce, it will \u2014 often just a few days after you send them back \u201ctheir\u201d money.<\/p>\n
2. The eager-beaver and unavailable buyer<\/h3>\n
Sure, you think your house is great. But beware the eager-beaver buyer. Being excited about your home is one thing, but a buyer who comes across as obsessively eager to send earnest money or a large down payment sight unseen can be a red flag.<\/p>\n
Similar to the foreign buyer scam, they\u2019ll be unavailable to tour in person or take phone calls, but they still really want to buy your house. They could make an offer over your asking price, offer cash, promise to deposit earnest money into an account \u2014 and then run a cashier\u2019s check or wire fraud scam.<\/p>\n
Note that some legitimate buyers do buy homes remotely<\/a>. But they\u2019ll typically have an agent who walks them through the house on a video call or negotiates on their behalf. This is where your real estate agent can help you screen the real from the fake.<\/p>\n From the start, this buyer gives you detailed financial records and personal information \u2014 far more than someone would expect on an initial home sale inquiry. They send bank and financial statements without even being asked, to \u201cprove\u201d they can afford to pay cash<\/a>.<\/p>\n In this situation, use your common sense. Would you send a stranger financial records? Probably not. While proof of funds is part of a legitimate cash deal<\/a>, the information would always pass between your agents and the escrow company.<\/p>\n While they may be willing to provide lots of bogus financial details, they might not have references, a social media presence, or any real proof they exist.<\/p>\n3. The detail-overload buyer<\/h3>\n