When it’s time for you to bid your humble abode farewell, you may think that your only way of doing so is to hire a realtor who will list your house on the market and hand it over to a buyer. But, you will be surprised to know that’s not the only approach to selling a property. Cash home buyers or a real estate investor is an individual or company that buys real estate for cash. They intend to flip it and generate revenue from the sale afterwards.
While doing so is a perfectly legal way of buying real estate, there is a general lack of knowledge about real estate investors, enabling scammers to thrive. Scammers can leverage the experience and labor of respected cash buyers into conning honest people out of their money and property.
Many people succumb to impatience when they say, “Sell my house as-is for cash,” yet it can be a good way to sell if you’re in a situation where you need to move places, like divorce or relocation. Plus, if the house has financial issues, such as tax liens or forclosure, a direct buyer can purchase the home and remove those problems from your plate.
That being said, it’s important to know the ins and outs of a direct buying process so you can recognize the scammers who want to exploit your situation against you. Here’s how to avoid getting scammed by Cash Buyers for Homes.
Can You Prove The Company’s Existence?
Suppose you get a phone call from someone claiming to be a real estate investor. They offer to buy your house in its current condition for cash, and they wish to close the deal as fast as possible. How do you know that their company is authentic? You might question yourself the same way when you see a “We Buy Houses” sign on the road and consider contacting them.
The simplest solution is to do a little digging. Start your research by questioning the company. What is the name of their business? What is their exact address in the city? Is it possible for you to come by for an appointment? Who owns the company? Is there a website you can look at to learn more?
Each answer you receive provides you with an opportunity to follow up and verify the truth. Don’t hold back from pushing for more information if you don’t get what you wanted. A credible company will be more than complying and provide you with everything you need to feel secure and protected.
If you’re not comfortable inquiring them directly, employ the internet help and run a Google search. Either you will find their information, or you will not, which can provide a lot of clarity.
Do They Seem Too Eager To Buy Your Home?
A trustworthy real estate investor requires information in for making you a cash offer. They will want to understand your circumstances, maybe even take a tour or see photos of the house, and collect sufficient data to make a sound decision. This property is an investment for them, so they’re not going to spend money on something they don’t understand.
If this company or person is forcing you to sign an immediate deal before you’ve had a chance to think about it, there’s good reason to be skeptical. An honest cash buyer will want to ensure your ease with a decision before committing to it. An individual trying to get you to agree while you’re still concerned or curious may be trying to dupe you before you realize it’s too late.
A legit real estate investor will give you a deposit as a token of good faith. Because the realtor will probably purchase your house, they may want to ascertain some agreement between both parties while they work out the details. It’s a sign of good faith on their side and yours, just like all real estate transactions.
However, a scammer may try to lead you on without providing you with any paperwork to back up their financial claims. Although any investor may indeed need some additional time to secure funding, anyone who isn’t being completely upfront with you about their financial conditions may have some skeletons in the closet.