How to Spot Predatory Practices When Selling Your Home in Distress

When you're in a difficult property situation, you may encounter buyers or companies that don't have your best interests at heart. Knowing the red flags can protect you from making a decision you'll regret.

Red Flags to Watch For

• Pressure tactics — Any buyer who says you must decide "right now" or the offer disappears is using a high-pressure tactic. Legitimate buyers give you time to think.
• Verbal-only offers — Never accept an offer that isn't in writing. A legitimate cash buyer will provide a written offer you can review.
• Upfront fees — You should never have to pay a buyer to purchase your property. If someone asks for "processing fees" or "application fees," walk away.
• Unclear terms — If you don't understand the contract, don't sign it. A reputable buyer will explain everything and encourage you to consult an attorney.
• No physical address or company info — Legitimate companies have a real business address, phone number, and verifiable track record.

What Legitimate Buyers Do

• Provide written offers with clear terms
• Give you time to review and consult with others
• Never charge you fees or commissions
• Have a verifiable business presence and references
• Explain their process transparently
• Respect your decision if you say no

Protect Yourself

• Get multiple offers — never accept the first one without comparison
• Research the buyer or company online
• Consult a HUD-approved housing counselor (free service)
• Have an attorney review any contracts before signing
• Trust your instincts — if something feels wrong, it probably is