House Buying Scams You Should Avoid

Suppose you want to sell your home because you want to find someplace to live in or make a profit on the real estate market in New Hampshire to receive extra funds. Regardless of your financial situation, you might find any opportunity for selling your home to be the most convenient solution.

When selling property to cash home buyers in New Hampshire, it would be best to find a reputable company to help you negotiate a real estate transaction that suits your needs. Unfortunately, however, many homeowners find themselves susceptible to falling into house buying scams. 

Fraudsters claiming to be lenders persuade you into paying a hefty upfront fee while selling your home.

Luckily, there are several ways you can avoid house buying scams. From wire transfer scams to “we pay cash for houses” scams, you can counteract scammers from accessing your bank account, taking your cash, and causing inconvenience.

As we delve into some of the most common real estate scams you might encounter, we’ll provide you insight into identifying them and how to avoid them. 

Spotting a House Buying Scam in New Hampshire

Spotting a House Buying Scam in New Hampshire

Although many scammers find ways of exploiting their victims’ trust to take their money, several red flags can help you pinpoint which house buying companies are legitimate and which ones aren’t.

If you roam around your neighborhood and spot a sign advertising, “we buy houses,” chances are it’s a house buying scam aiming to lure unsuspecting victims. Scammers usually target people who face foreclosures or who are desperate to accept any deal quickly. If you ever thought to yourself, “I need to sell my house fast in Bedford” or anything along those lines, you might be more susceptible to scammers.

Another way you can identify a house buying scam is the types of offers they promise. If the offers are too good to be true, they’re most likely non-existent. 

How to Avoid Being Scammed

Although many people fall victim to home and rental scams, there are several methods you can use to avoid getting scammed. While some homeowners might trust their instincts and suspicions more than others, it’s still wise to stay vigilant whenever home buying companies attempt to get your financial data.

Know Who You’re Negotiating With

Building trust is an essential component when negotiating with legitimate home buyers. Unfortunately, many home buyers don’t have certification when constructing a negotiation with you. Companies that buy houses in Rochester are licensed businesses that should help you for any reason, condition, and financial challenge you might face.

Company reviews are another way you can avoid a scamming scheme before making negotiations. Looking at negative reviews from people who used their services through online outlets, such as the Better Business Bureau, can give you some perspective of what to expect if you do business with a shady home buying business.

The Better Business Bureau is also a reliable way for you to research a company’s licensing credentials. 

Verify Communications

Another way you can avoid getting scammed is by verifying the company’s communications. Many publicly placed signs and online ads that scammers place usually showcase a single phone number as the only means of communication. 

Legitimate house buying companies usually have websites with business emails, social media accounts, and web pages advertising their services and how they can solve your issues. If the scammer lacks several communication outlets and doesn’t provide you with transparent information, you should avoid them at all costs.

Research House Buying Process

When selling your house by yourself, it would be wise to research New Hampshire’s house buying processes to ensure the deals you make with a cash buyer are legitimate. Whether you rely on face-to-face deals or prefer selling your property online, it’s an excellent way of keeping your financial data secure.

When selling your house online, you should reconsider marketing your property to iBuyers. While they specialize in buying your homes swiftly, this eagerness for making a deal with you is a characteristic most associated with house buying scammers.

Some factors you should consider when researching include:

  • Your financial situation
  • Finding an experienced and trustworthy realtor or real estate agent
  • Performing property inspections
  • Mortgage pre-approval

Keep Your Information Safe

Before making a deal with any person or company claiming they can buy your home, it would be wise to ask them for more information before giving them your data. With the significant growth of the Internet, many scammers are more likely to find your personal information and find you online. 

When a scammer asks you for your banking data when they request a fee for their services, it would be best to ask them several questions about what they intend to do after making the transaction. When they can’t give you a transparent answer, they’ll likely leave you alone and search for a new person to scam. 

When a scammer asks you for your social security number through email or phone, don’t give it to them. Giving them this essential information grants them access to your personal data to commit identity theft; doing this damages your credit score as they apply for and use their credit cards.

Types of House Buying Scams to Look Out For

Different scammers use different methods of swindling you for your cash or banking information. Although the real estate market is a fast-paced environment for making and closing deals, it’s best to slow down and stay vigilant for scams aiming to take your money and property.

Cash Offer on House Scam

One type of house buying scam that you should look out for involves scammers offering tremendous amounts of cash for your home. You might receive these offers through unsolicited phone calls or emails.

Although several of these offers come from foreign buyers, scammers from any country can use this scheme to their advantage. These businesses or individuals usually ask to buy your property within a short time frame. 

To avoid these house buying scams in New Hampshire, request the buyer’s contact information before considering accepting their cash offers. If the phone number or email doesn’t get back to you after a short time, time zone differences aside, they’re most likely never going to call you again.

We Pay Cash for Houses Scam

Another way fraudsters attempt to steal your money and property is through “we pay cash for houses” scams. They typically send postcards to people struggling with their mortgage payments. Although this offer sounds enticing, it’s a gateway for scammers to rip you off and impact your home negatively.

Many of these companies persuade you to pay upfront fees and sign over control of your home; this practice causes victims to lose their homes and continue paying their mortgages. 

Wire Transfer Scam

Escrow wire transfer scams are another common method fraudsters use to access your bank account’s funds. This scam usually occurs when a scammer sends you an email asking you to provide after hacking into a title company or lender’s email server. 

When you follow their escrow wiring instructions, the scammer receives your funds and moves on to their next target. You typically find out about this fraud when your realtor or title company informs you they didn’t receive your payment. 

Some warning signs of this scam you should look out for when you receive this message include:

  • Last-minute payment type changes
  • Emails with misspellings, poor grammar
  • Emails sent outside of regular working hours
What to Do If You’re Scammed When Selling Your House

What to Do If You’re Scammed When Selling Your House

If you get scammed while selling your house or refinancing your mortgage, there are several actions you can take. By seeking assistance sooner rather than later, you can avoid falling into more financial scams. When in doubt, call the authorities

One resource you can contact for immediate help is the Federal Trade Commission. Their primary objective is to collect scam reports from afflicted individuals. Property owners and renters reach out to the FTC for many popular scams, including wire fraud and imposter scams.

You can report your fraud online to an assistant or contact them by phone at 1-877-382-4357. It would be best to provide them as much detail about how you got scammed, including:

  • How much money the scammer asked for
  • When you paid them
  • The scammer’s name and contact information

You can also file a complaint to the FBI’s Internet Crime Complaint Center when a scammer victimizes you in their house buying scams. The sooner you take action, the more likely you’ll get your money back.

Conclusion

The real estate market is an accessible industry for fraudsters to exploit homeowners or tenants eager to sell their homes for profit. 

Although the presence of these scammers might seem intimidating to new house sellers or to people who were previously scammed, there are several ways you can identify a scam before they afflict you by paying attention to urgent messages with questionable formatting or grammar.

If you encounter a potential home buying scam or get scammed, several resources allow you to report them and heighten the chances of your money returning. 

As long as you know the house buying process, keep your information secure, and research a scammer’s identity, you can avoid becoming a victim to wire transfers and cash for home payment scams.

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