A FSBO Seller’s Guide to Staying Safe and Avoiding Costly Mistakes
Selling your home For Sale By Owner (FSBO) puts you in control of the process — from pricing and marketing to negotiations and closing. But with that control also comes a new responsibility: protecting yourself from scams and fraudulent buyers.
Unfortunately, real estate scams targeting private sellers are more common than many people realize. Because FSBO sellers don’t have an agent acting as a gatekeeper, scammers often see them as easier targets. These scams can range from fake offers and forged checks to more sophisticated schemes involving stolen identities or wire-fraud attempts.
The good news? Once you know the warning signs and take a few smart precautions, it’s relatively easy to spot suspicious behavior and protect your sale — and your finances.
🕵️♂️ 1. Why FSBO Sellers Are Prime Targets for Scams
Scammers love FSBO listings for a few simple reasons:
- Direct access: Without an agent filtering inquiries, scammers can contact you directly.
- Less experience: Many FSBO sellers are first-timers and may not recognize red flags.
- Faster decisions: Sellers eager to close quickly may overlook suspicious details.
- Financial vulnerability: Real estate transactions involve large sums of money — an attractive target.
Being aware of this risk is the first step in preventing it. The second step is knowing exactly what to watch for.
⚠️ 2. Common Scam Tactics Targeting FSBO Sellers
While scams come in many forms, most follow a few predictable patterns. Here are the most common schemes you’re likely to encounter — and how they work:
💸 1. The Overpayment Scam
How it works:
A “buyer” offers to purchase your home, often sight unseen, and sends a cashier’s check for more than the agreed-upon amount. They then ask you to “refund” the difference — often claiming it was an error or that it’s for moving expenses.
The danger:
The check initially appears to clear but later bounces as fraudulent, leaving you out of the refund amount — sometimes thousands of dollars.
Red flags:
- Buyer insists on sending a check before signing a contract.
- They push for you to refund part of the payment quickly.
- The payment is from a third party you don’t recognize.
🏠 2. Sight-Unseen Offers (Too Good to Be True)
How it works:
The buyer claims to want the home immediately — without visiting, asking questions, or scheduling an inspection. They may even offer above asking price to secure the deal quickly.
The danger:
Some of these buyers are scammers attempting to steal your personal information or gain access to your financial accounts during the “payment” process.
Red flags:
- Offers arrive within hours of listing, with little to no due diligence.
- The buyer refuses to view the property or send a representative.
- They ask for sensitive financial or personal details early on.
🧑⚖️ 3. “Fake Attorney” or “Escrow Company” Scam
How it works:
The scammer pretends to have a real estate attorney or escrow company handling the purchase. They might email official-looking documents or direct you to a convincing website — but it’s all fake. At some point, they’ll request wire transfers or payments to their “escrow account.”
The danger:
Once funds are wired, they’re almost impossible to recover.
Red flags:
- The buyer pressures you to use their escrow or title company.
- The company’s contact information doesn’t match legitimate listings.
- Email addresses are generic (e.g., Gmail or Yahoo) instead of professional domains.
🪪 4. Identity Theft Attempts
How it works:
The “buyer” requests sensitive documents (like a copy of your deed, bank info, or Social Security number) under the guise of “verifying ownership” or “preparing financing paperwork.” In reality, they’re trying to steal your identity.
Red flags:
- Requests for personal or financial documents early in the process.
- Emails or calls asking for information unrelated to the transaction.
- Pressure to respond quickly or “risk losing the sale.”
💻 5. Phishing and Wire Fraud Scams
How it works:
You receive emails that appear to be from your title company, attorney, or even the buyer, asking you to wire funds to a specific account. The emails are fake — part of a phishing attempt to divert money during the closing process.
Red flags:
- Changes to payment instructions at the last minute.
- Slightly altered email addresses (e.g., titleco.com vs. tit1eco.com).
- Urgent language urging immediate wire transfer.
💡 Pro Tip: Always confirm wire instructions by phone with a verified number before sending money.
🧠 3. How to Vet Potential Buyers
The best way to avoid scams is to verify buyers early — before you share sensitive information or sign anything. Here’s how to do that:
✅ Step 1: Request Proof of Funds or Pre-Approval
Serious buyers should be able to show either a mortgage pre-approval letter from a recognized lender or a proof-of-funds statement from their bank. If they hesitate or refuse, that’s a major red flag.
✅ Step 2: Verify Identities
Ask for a copy of the buyer’s driver’s license or other government-issued ID. If they’re represented by an attorney or agent, verify those professionals through official websites or state licensing databases.
✅ Step 3: Use a Trusted Title or Escrow Company
Insist on using a reputable, third-party title company or attorney to handle funds and documentation. Never send or receive money through personal accounts.
✅ Step 4: Communicate Through Secure Channels
Use official email addresses and phone numbers — not unverified third-party messaging apps — for important communications.
✅ Step 5: Trust Your Gut
If something feels off — whether it’s pushy behavior, poor communication, or inconsistencies in their story — trust your instincts and slow the process down.
🛡️ 4. Safety Tips for In-Person Showings
Scams aren’t always digital — some involve physical safety risks. If you’re showing your home to strangers, take precautions:
- Always schedule showings during daylight hours.
- Have a friend, family member, or neighbor present.
- Keep valuables, documents, and prescription medications locked away.
- Require potential buyers to provide identification before the showing.
- Never share alarm codes or leave keys unattended.
💡 Pro Tip: Treat every showing like a professional business meeting — safety and verification come first.
🧑⚖️ 5. What to Do if You Suspect a Scam
If you suspect a potential buyer is trying to scam you:
- Stop all communication immediately.
- Do not send money or share personal information.
- Report the incident to local law enforcement and the FBI’s Internet Crime Complaint Center (IC3).
- Notify your bank if you’ve shared financial information or transferred funds.
- Inform your title company or attorney if the scam is related to a pending transaction.
🧱 6. Real-World Red Flags: Quick Reference Checklist
Use this quick list to identify possible scam buyers:
🚩 Offers sight unseen — especially with over-asking prices.
🚩 Urgency or pressure to skip steps (“Let’s close tomorrow!”).
🚩 Requests for refunds or overpayment refunds.
🚩 Pushes to use a specific escrow or title company you don’t know.
🚩 Refusal to provide ID, proof of funds, or pre-approval.
🚩 Unprofessional communication — poor grammar, vague answers, or inconsistent stories.
🚩 Sudden changes to payment or wiring instructions.
If you see more than one of these warning signs, proceed with extreme caution.
🏁 Final Thoughts: Caution Is Key — But So Is Confidence
The vast majority of home buyers are honest and legitimate — but in the world of FSBO sales, even one scam attempt can cost you thousands of dollars or derail your sale.
By learning the red flags, verifying every buyer, and using professional safeguards like escrow services and title companies, you can dramatically reduce your risk. Think of scam prevention as part of the selling process — just like staging, pricing, or negotiating.
Remember: real buyers won’t mind following proper procedures. Scammers, on the other hand, rely on urgency, secrecy, and pressure. If you refuse to rush, verify everything, and trust your instincts, you’ll stay firmly in control — and protect both your property and your peace of mind.