Avoiding We Buy Homes Scams
You see the signs on telephone poles. You see flyers in grocery stores, too. But are these proclamations that We Buy Houses 4 Cash! legitimate or are they potential scams?
While there are plenty of legitimate cash-buying home programs out there, there definitely are we buy homes scams, too. You need to be able to spot the difference between the two if you are in a situation where you need to sell your home fast.
You may need to sell your house fast but that does not mean you should feel as though you need to rush. If you feel desperate, you will more than likely fall prey to we buy homes scams.
There are many people who find that they have to sell fast. Reasons for a quick sale may include the death of a spouse, a divorce or job relocation.
Whatever the reason is, if you find a legitimate company that works to pay cash for homes, you do not have to rush. Take your time searching for companies that have been doing this cash buying for years and that have excellent reputations.
There are companies that have been around for many years and have provided fast cash for houses to grateful sellers everywhere.
They work nationwide and have franchisees that are legally allowed to provide these services under their names. It is the we buy home scams that will try to imitate these companies.
Things to look out for are phony trademarks.
If the trademark or logo on a flyer or sign looks like it is a poor attempt at copying a legitimate home buyer company, it is most likely fake. If you call the number on the flyer does someone answer the call in person?
If so, can they provide their name and whether or not they are a licensed real estate agent? If they claim to be investors, what recent purchases can they prove they have made?
You can see recent sales on major real estate websites as well as your local MLS website. Ask a real estate agent for access to guest log-ins to see if the investor is telling the truth that they bought a house last month on a certain street in your town.
If the so-called investor or home cash buyer insists that you must pay an application fee or another fee in cash, that is a big sign that you are dealing with a scammer.
Another sign that you could be dealing with a scammer is that you are not talking with the person buying the house.
If you are talking to a third party, you are most likely dealing with an unscrupulous company.
Legitimate cash buyers will not ask for money up front.
They also have a solid web presence so that any interested sellers can find out more about them. They will ask to meet with you and inspect the property in order to get an idea of what to offer you. They will not pressure you to sell to them, however.
One question that many sellers have is how these legitimate cash home buyers make money? They earn it by purchasing your house as-is, typically for a little less than you might get if you list the home with an agent.
That is pretty much the only catch, but if you had the time to make improvements to your house or let it sit on the market after listing it to earn more, you would do just that. This is not always possible for someone in a financial bind.
The cash buyers will be able to fix the house up after they purchase it and then sell it for more. That is how they make their profits. They are not afraid to disclose this fact to any seller that needs their help.
Watch out for buyers that have offers that sound too good to be true. Look for the buyers that have the experience and reputation for making good cash offers to sellers like you.
They will never ask for cash up front. Basically, if you are in need of selling your home fast, you can spare yourself from a scam by being a little patient and finding legitimate cash buyers in your area.