Be careful about where you sell your real estate property, especially your house.
You may see on the internet very attracting ads about “companies” buying houses fast, with promising lines such as “we buy houses” or “we buy houses fast“.
They may look and sound so assuring, especially if you need to sell your property quickly because of an emergency. It can be because of a sudden death of a family member, for paying your debts, or any other reasons you might have to sell it immediately. However, don’t get trapped into these popular we buy houses scams.
There are many legal companies that buy houses for cash, but many of these we buy houses scams can also look legit and legal. You might get hooked in by their professional sales talk and jargon. When you click the bait they’ve set out and sell your property to them, you might just lose it in one of these swindles. Then, the problems you already have will only get even worse.
That is why it is important that when you sell your house, always avoid these we buy houses scams and protect you and your family from complete bankruptcy.
How Can You Protect Yourself from We Buy Houses Scams?
Selling your house fast is a fairly simple process but you need to make sure that you’re working with a legitimate buyer and not be scammed by someone pretending to be someone that they are not.
Only Work with Professionals
The best way to protect yourself from being scammed is to work with a local investor or home buyer that has a solid reputation. Online reviews are a great place to start.
If the cash home buyer is lacking reviews or can’t provide references that you might want to look elsewhere. I’d recommend that you speak with a couple we buy houses companies to see which one you like the best.
I always tell sellers that they should go with their gut and work with the buyer that they like the most.
If the potential buyer tries to hard sell you or hits you with an ultimatum that I would walk away. There’s no reason for a buyer to pressure you into selling on the spot.
However, if you find the right buyer and he or she gives you a great price for your home then don’t hesitate to sell. They’re probably the right buyer for your home and situation.
Research About the Home Buyer
You can start your research online by finding a photo of the buyer. If they don’t have a real photo on their website then they’re not a legitimate company in your local area.
The next thing I recommend to do is to see if they’re apart of some type of affiliation like the Better Business Bureau. It’s always nice to see individuals or companies that have taken an extra step to make themselves a valid company.
Sign Only If You Understand What You Are Signing For
Hopefully, the cash buyer that you’re going to work with will have a simple 1-2 page purchase and sale agreement. This will make things really easy but it’s not always the case.
If your buyer has a purchase and sale agreement that’s 11 pages long then you’ll need to look for a couple of specific items.
Name of the buyer – The actual buyer’s name and nothing else. If you see the terms “and or assigned” then that is a huge red flag. It means that they don’t intend on buying your home.
Earnest money – It should be equal to at least 1% of the sales price. If they put $100-$500 in this field than that should tell you that they’re not serious about buying
Due diligence period – It should be around 3-4 days max
Option period – It should be around 3 days max.
Make sure to read or scan the purchase agreement and ask questions along the way. If the buyer gets nervous or can’t explain it then that should be another red flag.
Agreements Should All Be in the Form of Writing
Make sure that the agreements that you are signing are in writing. Don’t accept any verbal commitments.
Demand that everything is in writing.
Don’t Be Afraid to Say “No”
You may be afraid to look rude by saying “no” or you might feel pressured into saying yes because of a limited time offer. So you just agree with the deal with minimal research.
If you think that there is something wrong and are doubtful about the agreement, be firm in saying “no.”
Take your time and find the right home buyer or investor for your property.
Don’t put yourself into a situation where fake cash home buyers can run scams. Even if you need to sell your property quickly, be careful about who you choose to work with.