We Buy Houses Scams in Portland | How to Spot & Avoid Them

The real estate market in Portland is competitive, and unfortunately, high property values attract sharks. If you have typed “sell my house fast” into Google recently, you have likely been bombarded with ads, text messages, and postcards from people claiming they want to buy your house for cash. While many investors are legitimate, the rise of we buy houses scams has left many Oregon homeowners vulnerable to predatory tactics.

Distinguishing between a reputable local business and a scammer isn’t always easy. According to the Federal Trade Commission’s guide on real estate investment scams, bad actors often target homeowners in distress—those facing foreclosure, divorce, or dealing with inherited properties. Their goal is often to tie up your property for months, lower their offer at the last second, or disappear entirely, leaving you in a worse position than when you started.

At Better Off Home Buyers, we believe in radical transparency. We want you to feel safe. This guide will teach you exactly how to spot we buy houses scams and find a legitimate buyer you can trust.

Why Research Matters: A Client’s Perspective

Rodney checked our reviews and reputation before calling. Watch his story.

The Psychology of a Real Estate Scam

Before we dive into the red flags, it is important to understand how we buy houses scams operate. They rely on two main psychological triggers: Urgency and Isolation.

Scammers will pressure you to sign immediately, claiming their “cash offer” expires in 24 hours. They will also try to isolate you from professional advice, telling you that lawyers or title companies are “too expensive” or “unnecessary” for a private sale. A legitimate investor will always encourage you to take your time and will always insist on using a title company.

Red Flag #1: They Put Down Barely Any “Earnest Money”

In any legitimate real estate transaction, the buyer puts down a deposit, known as “Earnest Money,” to the title company upon signing the contract. This is “skin in the game.”

The Scam: A scammer or an inexperienced wholesaler will try to put down $10 or $100 as a deposit. This is a massive red flag. It signals they likely don’t have the funds to close and are just trying to lock up your property cheaply while they hunt for a real buyer.

The Better Off Way: We always put down a substantial, non-refundable earnest money deposit. This guarantees our commitment to buying your house.

Red Flag #2: The “Ghost” Buyer (No Local Presence)

Many websites targeting the keyword we buy houses scams are actually lead-generation farms for national call centers. They don’t know Beaverton from Gresham, and they certainly haven’t seen your house.

The Scam: They refuse to meet you at the property. They make a “blind offer” over the phone that sounds incredibly high just to get you to stop talking to other buyers. Once you sign, they send an “inspector” (who is often the real buyer) and drastically drop the price.

The Better Off Way: Scott or Dylan will meet you at your property personally. We live in Tigard and Portland. We shake your hand, walk the property, and give you an honest assessment face-to-face.

Red Flag #3: Lack of Verification

In the age of the internet, anonymity is a scammer’s best friend. Before you sign anything, you must verify who you are dealing with. Check the BBB Scam Tracker to see if others have flagged their operations.

The Scam: The company has no website, no Google Business Profile, and no reviews. Or, their reviews look suspicious (e.g., 50 reviews all posted on the same day). They might use a generic name like “Home Buyer LLC” that changes every few months to hide bad feedback.

The Better Off Way: We are BBB Accredited with an A+ rating, and an average 5-star-rating on Google. You can watch video testimonials from real neighbors in Oregon on our website and YouTube channel.

The “Wholesaling” Grey Area: Are They Scammers?

Not all “bad” experiences are technically scams; some are just incompetent business practices known as “unfunded wholesaling.”

A wholesaler is someone who gets a contract to buy your house but has no intention of buying it. Instead, they plan to sell the contract to a real investor (like us) for a fee. While wholesaling is legal, it becomes predatory when the wholesaler lies to you, claiming they have the cash when they don’t.

If they can’t find a buyer in 30 days, they will use a “weasel clause” in the contract to cancel the deal, leaving you with a vacant house and weeks of wasted time. Always ask: “Are you the end buyer, or are you assigning this contract?”

Red Flag #4: The “Re-Trade” (Last-Minute Price Drop)

This is a common tactic in we buy houses scams. An investor gives you a high offer to get you under contract. Then, days before closing—when you have already packed your boxes and committed to a new place—they claim they “found a big problem” and demand a $20,000 price reduction. Sometimes they have already resold the property, and the price reduction isn’t even needed, but they will threaten to back out if they don’t get one. And if the seller complies and reduces the price, they investor pockets the difference

“At Better Off Home Buyers, we give you our best offer upfront. Unless something completely hidden is discovered (like a massive sinkhole under the foundation), the price we write on the contract is the price you get at closing. We don’t play games with your equity.” — Scott Dalinger

Red Flag #5: Novations

Some sneaky investors will agree on a price with you, and then list your house on the MLS, where it will show on websites like Zillow and Red Fin. They will do this before they have even closed. They will tell the seller, “don’t worry, the price we agreed on is the price you are going to get”. But if they can get an end buyer to pay a higher price than they are, then they will replace themselves as the buyer with the new end buyer, and pocket the difference at the close of escrow. And if they can’t find a buyer to pay more, they will simply cancel the deal and back out of the contract. This practice is called “novations”. If your house is going to be listed on the MLS, YOU are the only person that should be entitled to all of the potential upside, not some investor with no skin in the game.

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Frequently Asked Questions

Is selling a house for cash safe?

Yes, if you use a legitimate buyer and close through a Title Company. Cash sales are actually safer than traditional sales in some ways because there is no risk of a bank loan falling through at the last minute due to interest rate spikes or appraisal issues.

How do I know you actually have the money?

You have the right to ask for “Proof of Funds.” Any serious cash buyer should be able to provide a recent bank statement or a letter from their lender showing they have the liquidity to purchase your home immediately.

What if I signed a contract with a scammer?

If you feel you have been tricked into signing a predatory contract, do not panic. Contact a real estate attorney immediately. Many scam contracts have legal flaws or contingencies that may allow you to exit. Do not sign the deed over to them if you have doubts.

Why do scammers target “We Buy Houses” searches?

Scammers know that people searching for these terms often need to sell quickly due to stressful life events. They bank on your urgency making you overlook red flags. Slow down, verify the buyer, and insist on using a local title company to protect yourself.