Talk to UsScams to avoid
Cash offers, contract flippers, advances and agents who promise too much. Some are honest, some are not, and all of them cost something. Here's how to tell the difference before you sign.
Unsolicited offers
Probate filings are public, and lists of new filings are sold to investors and agents. Within weeks, families start getting letters, calls, texts, postcards and knocks on the door. Some of these buyers are honest. All of them are hoping you won't compare.
Some are real buyers. Most are investors who need to buy well below market to resell at a profit. In our experience, some investor offers fall around 60 to 70% of a home's as-is market value. Get a property-specific valuation before comparing.
AskWhat would the house sell for as-is, on the open market, with real exposure?
Home search sites invite you to type in the address and get a cash offer. The first number is a preliminary estimate. After an inspection, repair costs come off, and service fees often run several percent. Many of these buttons also pass your name to a partner agent or investor.
AskWhat is the final number after inspection, repairs and fees, and who am I really talking to?
Bandit signs, billboards and mailers from investor networks. It's the same business as the cash offer: buy well below value, fix, resell. Some have recorded papers against a house when the seller tried to back out.
AskWho exactly is the buyer, and what happens if I change my mind?
A wholesaler puts the house under contract, then sells that contract to a real buyer for a fee. If no buyer bites, the deal can stall or fall apart, and your timeline goes with it.
AskAre you the buyer who will close, or can you assign this contract to someone else?
It feels friendly, and it can be fair. But a quiet sale with no competition rarely brings the best price, and the person in charge must be able to show every beneficiary the price was fair. The same goes for a relative or tenant who wants to buy.
AskWould this offer hold up next to what the open market would pay?
A letter about family, memories and keeping the house just as it is. Sometimes it's true. Sometimes the plan is to tear it down, build new and sell. The story is free. The price is what counts, and many agents won't pass these letters along because of fair housing rules.
AskSetting the story aside, is this the best price and the strongest terms?
It arrives as a letter, a postcard or a call, and it sounds like luck. Often it's a way to win the listing, sell the house quietly before other buyers see it, and represent both sides. One buyer is not a market.
AskWill the house be fully marketed, and will you represent only me?
Pressure is the tool. Letters that warn of city fines, lost value or a last chance are written to get a signature before you compare. A real buyer can wait a few days.
AskWhat happens if I take a week to get a valuation and talk to my attorney?
Illustration only, assuming a negotiated 5% commission on the $1,000,000 sale and no commission on the $650,000 offer. Commissions are negotiable. The $300,000 difference excludes other selling and holding costs; compare actual net proceeds.
Sometimes a family needs speed or certainty more than top dollar. That's a fair choice when you make it knowing the number. Matias and his team can put the house in front of investors, neighbors and the open market at the same time, so you see every price side by side.
Protect the proceeds
Criminals can impersonate escrow, an attorney or an agent, or take over a real email account. A familiar name and a convincing email thread do not prove that new bank details are genuine.
Immediately contact the sending bank and escrow. Ask the bank to begin recovery efforts and contact the receiving institution. Report the incident to FBI IC3, notify your attorney, and preserve the messages and transaction records. Recovery is not guaranteed. Do not wait for a routine appointment.
Money now, pay later
Two kinds of money show up during probate. One pays an heir now, out of the inheritance. The other pays to fix up the house, out of the sale. Neither is a scam on its own. The problem is not knowing the price.
A company pays you cash now in exchange for part of your share. Many advances are structured as assignments of inheritance rather than conventional loans. Have your attorney review the actual agreement and applicable protections.
Before you sign, ask your attorney whether a partial distribution is possible instead.
A company, lender or contractor pays for paint, staging, repairs or a remodel. You pay it back from the sale. It can be useful. It is never free.
Illustrative examples based on financing structures seen in real transactions. These are not the figures from a particular sale.
On a $75,000 loan held for 6 months, 15% annual interest is $5,625 and 3 points (3% of the loan amount) add $2,250. Financing costs total $7,875 before other fees, in addition to repaying the $75,000.
Illustrations assume simple interest on the full loan amount for the stated period, with fees paid at repayment and no interest charged on fees. Actual terms, draw schedules and additional charges vary.
Does the work raise the price by more than it costs?
Exactly what gets done, and by whom?
Every fee, in dollars.
There's nothing wrong with it as long as you know what you're paying for. When a company says we fix before we sell, you need to know why, what, and what it is costing you.
Matias Baker Masucci
A clear loan agreement does not guarantee good construction. Verify the contractor's license through CSLB. Get the scope, price, permit responsibility, completion schedule and payment schedule in writing. Require written approval for changes and ask how subcontractor payments and lien releases will be handled.
For California home improvement contracts, the down payment is generally capped at $1,000 or 10% of the contract price, whichever is less. CSLB identifies a limited bond exception. This contractor down-payment rule is different from a lender's financing fees.
CSLB: contracts and payment protections · Check a contractor's license
The listing
It's called buying the listing. An agent quotes a price well above the others to win the job, and the market sets the record straight later. Sometimes the agent doesn't even know they're doing it.
Week 1
Three agents value the house. One comes in far higher than the others and wins the listing.
Weeks 2 to 8
Showings, open houses, no offers. The mortgage, taxes, insurance and utilities keep coming.
Weeks 8 to 12
"The market changed." "Rates are up." The first impression is gone, and so is the buzz.
The end
Worn down, the family accepts less than the honest agents said in the first place.
Ask the highest agent for the comparable sales they used. Then show those sales to one of the agents with a lower number and ask what they think. A good agent can explain the difference in a few minutes.
Watch for comparables from a better street, a bigger lot or a remodeled house.
The calls come right after the filing. Some offer a lower commission than other agents. Saving a point means little if the agent has never sold a probate house. Ask about their recent probate sales and which attorneys you can call. How to choose an agent.
A scammer can copy a real agent's name, photograph and license number. Look up the license, independently locate the brokerage's phone number, and confirm with the actual professional that they contacted you. Do the same independent verification for an unexpected message claiming to come from an attorney or escrow.
Be wary of a rescuer asking you to sign over ownership, redirect mortgage payments or pay upfront for a promised loan modification. Contact the verified mortgage servicer and your attorney directly. A HUD-approved housing counselor can also help you assess options.
An empty house is a target. Some scammers forge a deed and try to sell or borrow against a house they don't own. Others move in and claim a right to stay.
Got an offer in the mail?
Send Matias the offer, advance or contract you received. He'll show you what the house could bring on the open market and what the offer really costs, so you can decide with the numbers in front of you.
Discuss the PropertyPrefer to talk? Call (310) 776-5145