📘 3. Top 5 FSBO scams to avoid
FSBO sellers are prime targets for scams because they operate without agent oversight. Many scammers know sellers are eager, emotionally invested, and less protected by legal review. These scams range from overpayment fraud to fake closing agents and bogus legal support. They're not just frustrating-they're financially and legally dangerous. This guide outlines 5 common FSBO scams and how to identify them early. We've seen all of them in Illinois. Learn what to watch for before you respond to any buyer request or sign any form.
🚫 1.The “Cash Buyer” Overpayment Scam
I'll pay you full price in cash-just send a refund for the overage. A scammer claims they're a cash buyer from out of state. They send a check for more than your asking price and ask you to refund the difference. Their check clears temporarily—but later bounces. Meanwhile, your refund is gone.
📌Important: Never accept overpayments. Never refund or wire money to a buyer before funds have cleared and been verified through a legitimate title company or attorney.
🚫 2. The Bogus Pre-Approval Letter
"Here's my lender letter-can we skip the financing contingency?” Buyers provide pre-approval letters that appear valid but come from unverifiable lenders or forged templates. Some use outdated letters or remove key details to gain negotiation power.
📌Important: Always call the lender listed on the pre-approval. Confirm that the buyer has been vetted, credit pulled, and income verified.
🚫 3. The Fake Title or Closing Agent
"We've already set up the title company-please send docs and info to this email." Scammers pose as closing agents or title companies using fake email addresses and logos. Their goal is to gather private financial info or trick sellers into sending wire transfers to fake accounts.
📌Important: Always confirm title companies independently. Use official phone numbers, not those provided in buyer emails. Work with a trusted real estate attorney for closing coordination.
🚫 4. The Lease-Back Trap
We'll close now and let you stay-just sign this addendum. Some buyers promise post-closing possession agreements but then change terms, demand additional rent, or begin eviction proceedings. Others delay closing while the seller continues to carry holding costs.
📌Important: Avoid lease-back agreements unless terms are written, reviewed, and clear about duration, payments, and exit conditions.
🚫 5. The Unlicensed “Helper” Offering Free Legal Advice
You don't need an attorney-I'll help you fill this out for free. Unlicensed individuals (including investors, ‘consultants,' or buyers themselves) often guide FSBO sellers into contracts or paperwork without any legal background. This can void deals or open you up to liability.
📌Important: Only trust licensed professionals with legal documentation. Even free help can cost you if it's wrong or incomplete.
🚫 Purpose of this tool
Purpose of This Checklist:
This guide was created to help FSBO sellers in Illinois protect themselves from common scams that target private home sellers. Selling your home without an agent gives you control-but it also opens the door to risk if you're not prepared.
📌FINAL NOTE: FSBO scams aren't just rare one-off cases—they're active, evolving, and targeting sellers across Illinois every day. This tool was designed to help you recognize those scams early, respond wisely, and avoid preventable mistakes. Your home sale is one of your largest financial transactions-don't trust it to strangers or short-cuts. Always verify, document, and protect yourself with legal clarity. For help reviewing your FSBO contracts or verifying documents before signing, FSBO Legal Services offers a free consultation with a licensed Illinois real estate attorney.