The Ohio Department of Commerce Division of Real Estate and Professional Licensing (REPL), the Ohio Department of Aging (ODA) and Ohio District 5 Area Agency on Aging in Richland County are bringing awareness to a rising trend that is impacting Ohio's older population. 

Reports of unsolicited real estate offers are targeting older homeowners and putting their financial well-being and housing security at risk causing the Ohio Department of Commerce to issue a consumer alert.

Wholesaling is a real estate practice where individuals find sellers looking to sell quickly, negotiate a below-market price and sign a purchase contract. 

They then market the property to buyers at a higher price, transfer the contract to a buyer and keep the difference as profit.

These transactions usually happen simultaneously, and if no buyer is found, the sale may not go through.

Duana Patton, CEO of the Ohio District 5 Area Agency Aging, states that multiple older individuals in north-central Ohio have been impacted by wholesaling and it's important for others to be aware of the potential risks engaging in this activity. 

Patton says, "Unfortunately, it isn't uncommon for wholesalers or other property investors to target older individuals and engage with them to see if they'd be interested in selling their home."

She continues, "Depending on the individual owner's financial situation, they may be tempted to accept an offer that they don't realize is well below market value. We are eager to work with the state of Ohio to raise awareness of this issue so that we may educate potentially vulnerable seniors and their families."

Aside from wholesaling, property owners may receive unsolicited offers in the form of complicated financial arrangements such as leasebacks and reverse mortgages.

Some offers may seem appealing at first but could carry hidden risks, potentially leaving older adults vulnerable or even causing them to lose their longtime home.

A growing concern is that older adults are being approached through calls, letters or in-person visits with complicated real estate offers that are difficult to evaluate. 

These proposals often misrepresent the property's true value or contain unfavorable terms.

For example, in sale leaseback agreements, homeowners receive a lump sum for their property but must then rent the home they once owned, potentially facing unexpected costs or obligations.

REPL Superintendent Daphne Hawk says, "It's important that we do all we can to protect our elderly neighbors and loved ones from these potentially exploitative practices." 

She continues, "By engaging in proactive community education, we can inform and empower older adults and their families to recognize these practices so they can avoid potential predatory offers."

Families and caregivers can help in safeguarding older adults from falling victim and can help by verifying the credentials of individuals or companies presenting offers and consulting trusted advisors which can help protect elderly homeowners.

REPL is working with ODA and the Ohio District 5 Area Agency on Aging to highlight resources and experts to assist older adults and their families to make informed decisions.

The resources include tips for verifying offers, guidance on understanding complex agreements and referrals to local agencies that specialize in elder care and financial management. 

ODA Director Ursel J. McElroy says, "The Ohio Department of Aging encourages all older Ohioans and their loved ones to be aware of common scam tactics so they protect themselves from transactions that could cost them their homes."

She continues, "Whether they are using pressure tactics, asking for personal information, or posing as friends on the internet, scammers target older adults at a high rate in many different ways. By learning the most popular ways scammers operate, older Ohioans can make sure they are safe from scammers."

You can visit the Department of Aging's website here to view their section devoted to stopping scams and highlights on what type of scams target older adults.

If a loved one has received unsolicited real estate offers or suspect predatory practices, contact the Division at [email protected] or you can call at 614-466-4100.