Are those flyers about apartment purchase a scam?

Question

Let me start by stating that I know the golden rule: "If you need to ask if it's a scam, it very likely is". In this scenario my "spidey-sense" is tingling, however I can't quite see how would this scam work, if it is one.

This is in Europe.

Lately I and other neighbours started finding flyers in our mailboxes. The text on it varies slightly with each one, although it's fairly simple to tell that they are all coming from the same source (very similar styling, format, phone numbers from the same operator etc.).

They all contain some variant of the following (variance in brackets, translation mine, sorry if not entirely accurate):

Hello (dear neighbours) Our (My) name(s) are (is) "insert some common names here, John and Alice for example, varies with each note", and we are a young married couple (young man, recently moved for work). We (I) are (am) interested in buying an apartment in this localization. We are (I am) paying in CASH!!! Please contact us (me) @ "some mobile phone number, always from the same operator".

While I see how this could be a legitimate offer, the sheer number of these is setting off some kind of alarm for me. I found no less than twenty in my mailbox last week and they keep coming. Second thing that's off is that this is quite literally the most desirable part of town, and unless they (or their parents) are the top earners in the country, they probably can't afford to buy an apartment here, much less in cash. And if they are indeed wealthy, I find it hard to believe that they would waste their time sticking poorly designed flyers in someones mailbox, rather than delegating the job to an agency or a professional.

The flyers themselves must be coming with some other generic ones (local restaurants, cable tv and such) as no one noticed anyone unfamiliar putting these in.

If it's of any importance, nearly all of the owners here are old, retired people, with some younger ones who inherited their apartments.

I also haven't called the number on those flyers, since it might be some malicious number (redirecting my call to the other side of the world or something).

For now we asked the security guys (the terrain is not fenced, they just patrol the area) to look out for anyone suspicious. But I am still curious, what could be happening here; my only guess is that they are looking for someone old and vulnerable to scam them out of the apartment, but since selling requires a literal truck of paperwork with signatures of a specialized lawyer, I still am baffled.

Answer 1

I know this from Poland.

This is a semi-legal poaching technique used by estate agencies. It's semi-legal because the agencies (company) cannot impose a buyer, but an agent (a sole representative) is not forbidden from doing that.

This is used to create leads for them they could then show to their clients. It works because buying direct, with cash, makes the price of a flat lower than it would be on the market. People might think about selling a place but don't want to go through the time consuming effort of looking for a buyer and then waiting for their credit approval, procedures and so on.

So by calling them you show that you are willing to sell. They decide for how much. For example: They know such a place should cost 250k. They tell you they have 210k in cash. Maaaybe the family could lend them an extra 10k. If you agree they list your place on their site (without you knowing it).< br /> Theny then try to sell the place for 250k. The 30-40k difference is their commission. PLUS they could have an agreement with the buyer who pays commission from the buying price. Additional gain.

The agency gain would be that such person:

A) doesn't actively try to sell (so the seller is not well informed about prices in their neighbourhood and haven't had their place appraised)

B) doesn't have a deal with any real estate agency that would make them exclusive (probably)

c) Even if they do this, allows them to avoid the fine because the agent works "as a friend", not an agent.

Cash may not be actually involved. Sometimes such agencies help a buyer to get fast approval (it also help them to hide the real price from the buyer).

Or after the whole hustle the seller is manipulated that 2 weeks waiting for money is fast. It's just a buzzword to lure people out.

Answer 2

The "We Buy Houses for Cash scheme" is targeting desperate and misinformed property owners (like elders and minorities) through pressure purchase tactics to rip them off by taking the low ball offer with cash. In the process, the scheme maker (some are real-estate agents) actually already has a willing buyer, and this allows them to sell the house with handsome profits. Normally they will bypass any inquirer that doesn't match their profile (e.g. people well informed on their own property price, or that question too much) to save time and cost.

However, if the scheme maker is a real estate agent, in some locations there is a law that requires them to disclose themselves.

Unfortunately, this is a perfectly legitimate business.

Answer 3

It's obviously a scam for the reasons you mention, but I doubt it involves an actual property transaction. Possibilities include that they'll have all sorts of "problems" getting cash and ask you for help (the classic confidence scam), or they're simply casing homes to later rob by pretending to see the apartment and then "choosing some other place".