Industry Alert – Warning of Fake Buyers in Real Estate Transactions (2024)

FAQs

Why do I keep getting text messages about buying my house? ›

Potential buyers could be wholesalers shopping for an investment company. Perhaps house flippers looking to improve a property and sell it for a quick profit. Or, an iBuyer — online companies using algorithms to purchase homes and spin them off. The text could also be from a real estate agent.

A legitimate buyer will more than likely ask for additional information about the item for sale, such as the condition of the item. Potential buyers who ask for personal information like your email address or phone number or request the funds quickly are most likely scammers.

Scammers sometimes target homeowners about HAF programs. If you get an unsolicited offer by phone, in the U.S. mail, through email, or by text message offering mortgage relief or foreclosure rescue services, be wary.

REALTORS® should be aware that negotiations through text and email may bind clients to an agreement. Therefore, great caution should be used when communicating through these means unless the agent has the "express actual authority" to bind their client through such means.

Can realtors send unsolicited text messages? Generally, real estate agents can't send unsolicited text messages, according to U.S. consumer protection laws. You must get your recipients' permission before sending them marketing texts.

Unsolicited offers: Don't respond to unsolicited cold calls, emails, junk mail, late-night commercials or infomercials, or social media posts that are either overly attractive or fear-inducing. These are all common tactics scammers use to entice you to engage.

Scammers often come up with various reasons, such as emergencies, medical expenses, or travel costs. Never send money to someone you've only met online.

Verifying buyer information can be done by searching their name, email, phone number, or address on Google or social media platforms. This can help you confirm their identity or spot any red flags.

How to check if a broker is legit? ›

Visit FINRA BrokerCheck or call FINRA at (800) 289-9999. Or, visit the SEC's Investment Adviser Public Disclosure (IAPD) website. Also, contact your state securities regulator.

If you're fielding phone calls, text messages, and postcards from people who want to buy your home — for cash, nonetheless — you're not alone. Investors and buyers on the hunt for real estate deals employ these tactics to find off-market properties.

The first reason is real estate investors. They're always looking for new properties to buy, especially in competitive markets where housing is in short supply, like we have right now. They may use a variety of methods to find potential investment properties, including public records, direct mail, and cold calling.

It is not uncommon to receive cold calls with offers to buy your home, especially for those who live in desirable neighborhoods. While some of these calls are legal as they come from established real estate brokers, be aware that some of the calls are coming from fraudsters searching for their next potential victim.

This is especially common in competitive markets where agents may be trying to find off market deals for their clients. However, it's important to be cautious when receiving unsolicited offers to buy your house. Not all of these offers are legitimate, and some scammers may try to take advantage of homeowners.