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AARP Tackles Predatory ‘We Buy Homes for Cash’ Offers
Residential real estate wholesaling promises a fast sale but shortchanges older homeowners
AARP (Getty Images)
Key takeaways
- Older homeowners are often targeted by real estate wholesalers with lowball offers, quick-sale promises and contracts that may later be sold to investors.
- AARP’s 2026 model act calls for licensing, appraisals, cancellation rights and limits on aggressive marketing by wholesalers.
- Rhode Island and Ohio have passed consumer protection legislation, while AARP advocates for safeguards in other states.
Lisa Straight has seen about a dozen unscrupulous real estate companies try to take advantage of homeowners in recent years. All but one targeted an older adult.
The 61-year-old real estate agent says the tactics are the same: zero in on older people who are strapped for cash or desperate to sell their homes. Lowball the offer. Promise a fast sale or to cover their closing costs. Enter into a contract with the homeowner, perhaps having them sign on the small screen of a smartphone, without telling the seller that this company will sell the contract to a third party without ever assuming ownership.
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“They are deliberately going after seniors who can’t take care of the house or are moving into assisted living,” says Straight, who works in West Virginia and Ohio. “They are taking as much equity as they can off the homeowner, who may have had this house for decades.”
The practice, known as residential real estate wholesaling, usually involves people or companies pressuring homeowners to unload their houses, often for less than they are worth, in exchange for quick cash. Once a contract is signed with the homeowner, the buying firm typically sells it to an investor for a profit. Predatory companies often target older adults, preying on their desire to downsize or a need to move into an assisted living facility.
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AARP is pushing for checks and balances on the industry, such as requiring wholesalers to be transparent about the process and ensuring homeowners have time to research the true value of their homes before sealing the deal.
Property is often one of the most valuable assets that an older adult has. When selling to a real estate wholesaler, “you’re losing a lot of money” that could go toward long-term care, medical expenses or the next generation, says Samar Jha, a government affairs director at AARP who focuses on housing.
“We recognize that stopping this business completely is not realistic, but we can try to regulate it so fewer people suffer,” Jha says.
Regulating the bad actors
Signs that claim “We Buy Homes for Cash” paper telephone poles, while similar messaging on billboards dot highways across the country. Wholesalers may pepper their targets with phone calls or fliers in the mail. They pledge to buy “old” houses, “junk” houses or houses “as-is.”
But what does this practice look like?
Homebuying firms frequently snap up properties before they are publicly listed for sale, limiting the homeowner’s opportunity to get competing offers and determine the property’s full market value. A 2025 study from Zillow found that sellers who did not list their properties on these widely accessible databases, known as multiple listing services, have lost more than $1 billion collectively since 2023. To protect consumers, AARP created model legislation in 2026 that would regulate these predatory companies. It requires:
- Licensing and insurance for residential real estate wholesalers, to help regulators with oversight and protect consumers if financially harmed
- That wholesalers cover the cost of an independent appraisal for the home
- The right for homeowners to cancel the contract up until the deed is transferred. This “cooling off” period gives homeowners time to consult with a lawyer or family, or stop to consider the tradeoffs
- Measures to protect consumers from incessant calls and messages, such as a “Do not call” list
Some states already require disclosures, licensing or grace periods. “But most states don’t have anything specifically targeting this problem, which is how it’s been able to spread,” says Andrew Pizor, a senior attorney at the National Consumer Law Center. He believes the most crucial protection makes sure homeowners get an appraisal before they finalize the contract.
“Most homeowners have been misled into believing their property is worth a lot less than it actually is,” he says.
AARP takes action in states
The catchy “We Buy Homes” radio and television ads in Rhode Island, some of which feature a screeching British accent, made it easier than Matthew Netto expected to make his case in the state legislature.
“Legislators were familiar with these companies but didn’t realize they were not licensed real estate agents or the tactics they use to confuse older homeowners,” says Netto, associate state director of advocacy and outreach at AARP Rhode Island. “These companies go after older adults because they find them an easier target to sign on the dotted line,” whether that was because of medical issues or debt, he says.
AARP Rhode Island partnered with the Rhode Island Association of Realtors to draft a bill, borrowing language from AARP’s model act. Netto testified on its importance in the state Senate and House and used his office’s relationships with House representatives to keep the bill moving when there was a leadership shake-up mid-session. The bill became law in June and requires wholesalers to have a valid real estate license, to make clear that they could sell the contract before closing, and to allow buyers three days to cancel a signed contract without penalty.
AARP Ohio had similar success in 2025. Benjamim Webb, associate state director of advocacy and community engagement at AARP Ohio, partnered with Ohio Realtors, the real estate trade organization, to help pass a bill in December. It allows homeowners to cancel the agreement any time before the close of escrow if the wholesaler does not provide the required disclosures.
“We wanted to protect Ohioans who are being subjected to these shady practices so they can live comfortably in retirement,” Webb says.
AARP West Virginia supported bills in 2025 and 2026 that would have abolished wholesaling. Although neither bill made it to a vote, AARP West Virginia will support the same measure in 2027.
People may still choose to use a wholesaler if they find the convenience beats the price.
“We can’t stop someone from saying they want to use a residential wholesaler,” Jha says, “but if someone is getting into this transaction, they should have all the information.”
The key takeaways were created with the assistance of generative AI. An AARP editor reviewed and refined the content for accuracy and clarity.
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