Residents sometimes receive unsolicited calls and text messages from individuals offering to purchase their home. These businesses often target members of the Spanish-speaking community and senior citizens, despite their homes not being listed for sale.

Wholesalers and other related businesses present themselves as "acquisition specialists" and promise a quick transaction that will supposedly save homeowners money by avoiding commissions and other fees.

But homeowners can be misled into agreements without fully understanding the implications, all under the guise of saving money.  While the practice of real estate wholesaling is not illegal, it can be deceptive, especially as bad actors have become more aggressive in contacting homeowners amid ever changing housing market conditions.

In many cases, wholesalers convince homeowners to sign purchase agreements with offers typically below market value, with no intention of actually buying the home themselves.  Instead, wholesalers use the contract period to search for another buyer willing to pay more than the agreed-upon price. Homeowners are often unaware that they haven't truly sold their home, and that they are being charged exorbitant "assignment fees" totaling tens of thousands of dollars, far exceeding fees associated working with a REALTOR®

Worse yet, if wholesalers fail to find a buyer willing to pay more, contractual clauses may enable them to back out of the deal at the last minute, leaving homeowners in a dangerous situation, potentially causing financial losses and significant inconvenience, especially if homeowners have already made arrangements to vacate their homes.

Homeowners should always assess offers and consider seeking professional advice before entering into any agreements to avoid falling victim to deceptive practices in the real estate market.

Area residents who have been targeted by these unsolicited offers, or those who simply want to learn more about protecting themselves form these and similar scams are encouraged to contact the Waco Association of REALTORS®