How to Avoid We Buy Any House Scams (Expert Advice)

1) They are not genuine cash buyers

One of the first things you should do as a homeowner is to confirm whether you are dealing with a genuine cash house buying company

You'd be surprised to find that many so-called quick sale firms are, in fact, either intermediaries, lead generation companies (that sell your details to legitimate companies), or simply typical estate agents who operate under a false guise and try to sell your house on the open market after they've tricked you into signing a contract to use their house buying service.

2) Inaccurate valuations of your property

Many We Buy Any House companies often miscalculate the actual value of your property, resulting in a lower final offer.

An experienced property company will ensure they have good market data and tools to determine the true value of your property - usually asking for extra information which helps them accurately predict what your property is worth.

These firms will tell you things like we buy any house at 100% market value to get you on their side.

3) Reducing cash offer after overvaluing

A common scam or tactic by dodgy companies is where a firm overvalue your property or gives you a cash offer they have no intention of paying. Then as completion time approaches, they take advantage of your situation and start bombarding you with messages to try and get you to agree to a lesser figure so they can make more money out of the transaction. Unfortunately, these companies cannot offer guaranteed sales or sell your house quickly.

They likely are just middlemen and are now trying to sell quickly to a genuine house buying company. Don't be surprised if the firm says they are lowering their offer because of external factors or market value changes. In almost all cases, this is a lie.

Furthermore, a genuine property cash buyer can easily buy your house within 7-14 days. So it's unlikely that any external factor or market change will force them to make a lowball offer in just a fortnight!

4) Be wary of any hidden fees

It's important to note that both legit We Buy Any House companies and misleading firms that pose as cash buyers differ in extra or 'hidden' fees, so confirm what you will be paying for before signing anything.

The hidden costs often come in the form of upfront, survey, legal fees, and closing fees. Be vigilant, as the 'hidden fee' is not always transparent at the start.

5) False promises on completion time

Many quick house sale companies claim they will buy your house in 7 days. This is very much doable, but only if they are true cash house buyers.

If the firm cannot meet the deadline they have set (whether that is 7 days, 14 days, or more), then alarm bells should start ringing on your side. It could be that the firm is trying to sell your home on the open market or sell your details to a real cash-buying company.

6) Watch out for option agreements

What are option agreements?

An option agreement is an agreement in the small print of a contract between you and the buying firm.

One common 'agreement' you should watch out for gives these dodgy firms the right to sell your house via a third party. To avoid this scam, read the small print.

If you see something like this, do yourself a favour and find another firm that will buy your property – you're not getting a quick cash sale with them. They do not have the cash funds available to purchase your house quickly.

7) Unregulated rent-back schemes

A firm must be regulated by FCA (Financial Conduct Authority) to offer rent-back schemes.

If you're looking to sell up and then rent back, remembering this will help you avoid this scam.

This regulation was put in place because many rogue firms in the past would promise sellers that they could stay in their homes for an agreed amount of time after selling it, but then after a short while, they would force them out without warning!