We’ve all seen those yard signs littered with “We Buy Houses,” or “Sell Your House For Cash.” Are these scams? We’ll show you, with a little research, how to weed out the good from the bad.
Does Their Company Exist?
When you get a call from company claiming “we buy houses”, it’s likely a real estate investment company. It’s important to ask them questions about their company and what they do. You should also gauge the person’s tone of voice; if they sound trustworthy or not. If something sounds too good to be true then it probably is!
The answer is, simply, to do a little research. Start by asking them easy questions that will help you get the information you need to determine their legitimacy. What is their companies’ name? Where are they located? Are they local or out of state/country? Try asking if you can arrange a meeting with them. You should always ask follow up questions to get more details and feel safe in dealing with a reputable company.
How Eager Are They to Purchase Your House?
When you’re ready to sell your home, a reputable real estate investor needs information in order to make you an offer. They’ll want to understand the situation and see photos of the property before making their final decision. If an investor makes an offer and pushes for a close on their first call, it’s probably not the best sign.
You probably don’t want to sign anything right away. If you are faced with someone who wants your signature without giving you time to think about it, they are most likely not reputable. A respectable cash buyer will make sure that all of their customers feel comfortable before signing any agreements.
Do They String You Along?
When you’re selling your home, having a legitimate real estate investor on the other side of that transaction can be very comforting. They might provide proof to back up their claim and show they are ready for an investment like this one. You want someone who is trustworthy because it will make both parties feel better about committing to such a big deal together!
Be wary of any offers that seem too good to be true. A scammer may string you along without providing you with the documentation necessary to back up their financial claims. While it is possible for an investor to take some extra time securing funding, anyone who isn’t being 100% upfront about his or her situation should raise a red flag. The last thing you want is to miss out on better opportunities while being strung along by someone trying the old bait-and-switch routine only to find there’s no deal because they couldn’t sort things out in the end!
Did They Explain Their Transaction Process?
Perhaps one of the best ways to spot a “We Buy Houses” scam is if you personally understand how a cash buyer transaction should work. One of the most important details for this type of purchase is that it always flows in your direction and never away from you, so beware any real estate broker who tries to get you to pay “transfer” or “processing” fees. Real Estate Investors services to the seller should be 100% free.
Investing in a property is an exciting, but complex process. A legitimate real estate investor like SellThatFloridaHouse will want to review the details of your house and the full transaction with you. They’ll probably also ask you for more information so they can learn about what it takes to make that investment happen! You should be given the option to decide where and when you’d like that meeting to take place. After that, they will make an offer in writing which is under no obligation if you say no.
Finally, the investor will pay you in cash and close on your terms. They can do it in a matter of days if that’s what you prefer! There are no closing costs or commission fees involved, so after all the paperwork is finalized, you will receive the full cash amount offered (or wire if you prefer) in your account within 24 hours.