As genuine cash house buyers, we have access to our own funding that we use when buying your home. Selling your home to a cash house buyer has a lot of benefits, but you also need to be aware of the cash house buying scams that are out there. To protect yourself and be sure a cash house buying company is legitimate, there are things that you need to be aware of and ask.
There are cash house buyers out there who don’t have the funds available to buy your home and some prey on those who are vulnerable financially. Rather than having the funds available to buy the home quickly, they will resort to tactics, such as having you sign an option agreement that locks you into having to use them for a longer period of time, while they try to find a third party buyer for your home. This isn’t how a legitimate cash house buying company works though. Here are some of the scams that you need to be aware of if you are looking to sell your home to a cash house buyer.
Not Genuine Cash House Buyers
You first want to be sure you are dealing with an actual cash house buying company and not a firm that is nothing more than a middleman or a lead generation company that sells your details on to cash home buyers. There are even some unscrupulous estate agents who will operate under false pretences. It’s important that you confirm that the company you are using is a legitimate cash house buyer.
Be sure to find out if they are working for a third party. Check to see if they are registered with any professional bodies, such as the National Association of Property Buyers. Real cash house buyers will have their own solicitors that process the sale of the home who you can also check with to be sure they are legitimate.
Property Valuations That Are Inaccurate
Another sign of a scam cash home buyer is having your property valuation miscalculated so that you are led to believe you can get much more than the property is worth. They do this to get you to sign a contract and then offer you much less just before the completion process is done. To properly evaluate your property, a buyer should be asking for as much information as possible and have access to the necessary tools to properly evaluate your home.
Paying Less Than Originally Stated
As we touched on above, one scam used is to overvalue your property with a figure that the company does not intend to pay you. They prey on those who are financially vulnerable by offering these large sums to get you on board, then offering a much lower amount as it nears closing. This is because they are just middlemen trying to find third party buyers to sell the property to. The problem is, third party buyers won’t buy a home that is overvalued. One red flag is if they tell you they are lowering the offer because of changes in the market or any other outside factors.
A genuine cash house buyer has access to their own funding and can buy your home in as little as 2 weeks.
Most legitimate cash house buyers cover the extra fees involved with buying a home, such as survey fees. Many scam companies will have hidden costs that they throw in so that they can make some more money off of the sale of your home. Be sure to ask about all fees that may be charged.
Offering False Completion Times
A legitimate cash house buyer company can sell your home quickly, usually within 7 to 28 days. You should be wary of any cash house buyer that gives you a fast completion date and then can’t meet that deadline. This happens with scam buyers because they are trying to sell your home on the market and looking for a third-party buyer.
This is another red flag when using a cash house buyer that isn’t legitimate. An option agreement is something they will add into the small print of a contract, such as stating they have the right to sell to a third party. If you see this in a contract, they are more than likely not a legitimate cash house buyer.
There are many benefits to using a legitimate cash house buyer to sell your home quickly. Knowing what to look out for so that you don’t fall into the hands of a scam cash house buyer will save you a lot of stress and money. If you have questions about selling your home for cash, give our expert team a call today!