There are many legitimate investors out there who are willing to pay cash for houses regardless of their age, condition, or location. If you are in a hurry to sell your home, working with one of these investors can be a good option. Although you may not get as much money as you would if you put your house on the market, you can typically complete the transaction much more quickly, allowing you to get on with your life again.
The important thing to remember, however, is that not all investors are trustworthy. When selling your home for cash, it is important to know what to watch out for so that you can find a reputable company to buy your house. Here are some red flags to keep an eye out for before you decide to work with a particular investor:
1. Making an offer without seeing your home in person. Very few reputable investors are willing to make an offer on a home without thoroughly checking it out first. If an investor tries to offer you money for your home sight unseen, you should be wary. Although these types of deals do happen, you may be dealing with a scammer. If you decide to go through with the transaction, proceed with caution and make sure you do your due diligence before signing on the dotted line.
2. Paying with a check. One common scam used by investors is to pay for a property with a check. Before the check has a chance to clear, they then decide to back out of the sale, requesting a refund. The buyer refunds the money to them only to find out at a later date that the check didn’t clear. As a result, they are out the money they refunded with nothing to show in return. The best way to avoid this problem is by only accepting cash or a certified cashier’s check as payment.
3. Charging application fees. A legitimate investor will not require any money before the sale. Instead, they will make their money by reselling your home after they buy it. Never work with a company that wants to charge you application fees or other fees up front. Generally, these companies are trying to take advantage of homeowners who are in a bind and need to sell their homes quickly.
Selling your home for cash can be a great option if you need money in a hurry. There are many legitimate investors out there who can help you quickly and easily complete the transaction. Unfortunately, however, there are also many scam artists out there who may try to take advantage of you.
Familiarizing yourself with common scams used by these individuals can help you protect yourself. Be aware of any red flags that come up during the transaction. It is always best to err on the side of caution and wait for a legitimate investor rather than to lose out on money by working with someone who has no scruples.