How to avoid scams from 'we buy any home' firms in 2022

How 'we buy any house' scams work

Fraudulent 'we buy any house' companies will often employ various techniques to get the best of you and rip you off. In this section, we look at:

Here, we'll explain to you the following:

• Types of 'we buy any house' scams
• 10 tips to avoid 'we buy any house' scams
• 9 rules to protect yourself from scams
• What to expect when selling to 'we buy any house' companies

Types of 'we buy any house' scams

Fake quick house sale companies will often disguise their motive so it's difficult to tell if they are genuine. That's why we're revealing five of the common scams you must look out for:

1. Gazumping

   This is the most common trick illegitimate companies will use to get you to sell your house to them. Questionable companies will often give you an unrealistic offer and even promise to complete the transaction in just a couple of days pending a valuation. However, they'll renegotiate once the valuation is complete with an unrealistic drop in the offer, usually at the 11th hour, when the only option you have is to accept the new offer. A legitimate company will establish the price.

2. Lead generation scam

   It'll surprise you to know that many companies, while purporting to buy your house, are just interested in making money from the sale of your data. They use their sites to generate leads by getting you to sign up for more details on their site only for them to sell your data to third parties.

3. False Valuations

   This is the most common trick illegitimate companies will use to get you to sell your house to them. Questionable companies will often give you an unrealistic offer and even promise to complete the transaction in just a couple of days pending a valuation. However, they'll renegotiate once the valuation is complete with an unrealistic drop in the offer, usually at the 11th hour, when the only option you have is to accept the new offer. A legitimate company will establish the price.

4. 

   Hidden fees

   Bogus 'we buy any house' companies will want to make money through hidden fees relating to the sale of your property. They will not tell you about these fees and only mention on the completion day when you can't realistically back off from the sale. Genuine companies will cover the legal costs and won't charge you any fees.

5. Lock-ins and 'option' agreements

   Fraudulent quick house sale companies will tactically lock you into an agreement such that you can't sell your property to another party if you change your mind. As for the 'option' trick, they will give you a contract with clauses that gives them the liberty to sell your property through a third party. The 'option' clause may also give room for assisted sales or the option to lease, which doesn't guarantee a sale. If anything, it may only result in additional fees.

   In the worst-case scenario, 'we buy any house' companies will not have the cash to buy your home, even though they'll claim otherwise. Genuine companies will have cash at hand to buy your home fast so that you can solve any issue you're facing. So, next time a quick sale company promises the world, think twice before signing the contract.

9 rules to protect yourself from scams

If you're like most people, the question will often be, 'how do I prevent myself from falling for a scam?'We've made it easy for you. Stay away from a lender who:

Fake quick house sale companies will often disguise their motive so it's difficult to tell if they are genuine. That's why we're revealing five of the common scams you must look out for:

1. Requests any upfront payment
2. Asks for a fee for withdrawing or cancellation in their paperwork
3. Promises a sale price that is close to 100% of the market value of your property
4. Offers you an option agreement or lock in contract
5. Alleges the industry is under government regulation
6. Doesn't have a visible company registration number displayed on their website
7. Is keen on putting a restriction against the title of your property with the land registry
8. Can't give proof of availability of funds
9. Claims to sell your house to investors for +90% of the market value

Selling your house to a 'we buy any house' company

It's possible to sell your home fast without getting ripped off. We share industry insider knowledge to help you protect yourself and navigate this industry safely by highlighting:

• How to spot 'we buy any house' scammers vs. trustworthy companies
• 10 tips on 'we buy any house' firms to avoid the scams in 2021
• What to expect when selling to 'we buy any house' companies

How to spot 'we buy any house' scammers vs. trustworthy companies

You need to identify shady and scam practices quickly. Remember, it just takes one encounter with a scammer to take you down.

10 tips on 'we buy any house' firms to avoid the scams in 2021

1. Look out for professional accreditations

   A genuine 'we buy any house' company will also be members of the National Association of Property Buyers (NAPB) as well as the Property Ombudsman (TPO). They will readily display this information on their website. Other important membership that credible quick sale companies will subscribe to are:

   • The Royal Institute of Chartered Surveyors (RICS)
   • The National Association of Estate Agents
   • The approved code of Trading Standards
2. 

   Do a little research on the company

   Don't just commit to selling your house to the first company you find. Instead, spend time looking up some information about them. More specifically, you should be keen on the companies trading history. They should also display their registration number on their website.

3. Check for recent independent reviews

   It's common for any company to have customer testimonials from past clients on their site. Sometimes these are curated so that they may not be an accurate representation of what clients say. Check out for recent independent reviews of the company on sites like Google, TrustPilot and Reviews.co.uk. These will give you an accurate picture of what you can expect if you choose to sell your house to them. If you find a company with little to no reviews or reviews that are not up to date, then this may just a red flag. Having too many reviews within a brief period may also point to falsified content.

4. 

   Ask for proof of funds

   The idea behind quick sale companies is that they buy property for cash. But it is risky to work with an assumption that the company has cash ready to buy your house. Go further and request that they prove their availability of funds soon after they give you an offer. Most serious companies will not have a problem sharing their financial statement.

5. Clarify on any fees

   Equally important is the issue of fees. Ask the 'we buy any house' company to come clean on any charges they're proposing. Ideally, most legit companies will not charge you any fees. Instead, they will cover all the legal costs; hence the reason for making an offer of 85% of the value of your property.

6. 

   Is the timeframe or offer too good to believe?

   Sometimes you have to trust your gut instinct in identifying 'we buy any house' scams. When a company gives you an offer that is too good to be true, take a step back and evaluate the possibility of it being a scam. For instance, where a company offers to pay the equivalent of 100% value for your home or they promise to complete the sale in 3 days, start questioning their legitimacy.

7. Request the solicitor's details

   Sometimes it is the company's solicitor that will help you steer clear from trouble. Therefore, request their details so you can contact them to verify that the company is genuine. If the company refuses to divulge this information or can't provide details of the conveyancer, just walk away before it's too late. Alternatively, have an independent legal advisor to guide you through the entire process.

8. Sell your house through an estate agent

   This is the best move you can make to avoid being conned by 'we buy any house' companies. However, you must remember the reason you opted for the quick sale company in the first place. While it's true that you won't be scammed and will sell your property for close to its true value, this could take a long time to find a suitable buyer and close a sale. So, ask the agent about the possibility of selling your house at an auction, as this may be the quickest way. Most importantly, make sure you're working with a proactive estate agent with a reputation for selling properties fast.

9. Ask to see the valuation report

   Certain 'we buy any house' companies will undervalue your property so that in the end you're getting far less than the value of your property. As such, you'll do well to request to see the valuation report just to be certain. You can even have estate agents offering you three different valuations for comparison. Quick house sale companies that undervalue your property will not want you to see the report.

10. 

    Don't be in a rush to sign the agreement.

    The devil is in the detail. Bogus 'we buy any house' companies will want you to sign the agreement quickly so you don't get to read the details. Our advice is don't sign until you have read and understood the agreement and have done all the legal checks. Where possible, ask your solicitor to explain anything you may not be clear about. You must be sure about what you're signing up for.