Have been called by potential buyer wanting to pay with PayPal. Does anyone know if legit? I ignored but it seems like scam? Opinions appreciated.

Cash or check drawn on your bank and verified by your bank! I would counter offer and if they insist on PP - ignore them.

Sounds fishy. Are you a online retailer? If not, otherwise why accept PP. Unless PP changed rules there is not any PP coverage for outside online transactions. Means If they miss a payment or decide to stop payment for any reason on transaction within 10-14 days at most card holder inc, they can stop payment and deduct $ back out without needed confirmation or approval from you, your PP will take it out or leave you with a negative balance or if you have another Account added they can take it from that one, read the terms. PP favors buyers.

Just ignore the scammers, If they want it, they will come to you with cash. No other way to do business. Too many scams. I have heard of the send my inspector and transfer title scams before, ITS A SCAM SIR.