Can Homebuyers & iBuyers Be Trusted With Your Property?
When you need to turn your property into cash, ‘We Buy Houses’ & ‘We Purchase Properties’ companies will be attractive. Those offers might be too good to be true, especially if they rush you. So how do you avoid scammers? & pick out honest cash home buyers instead?
In most cases, the homes are bought in any condition, with no repairs needed to be done by the seller, for a fast cash offer.
Not All Real Estate Investors Are Legit
They typically emphasize buying homes in any condition, even the “ugliest” homes. Since some lenders require strict inspections and appraisals for buyers to obtain financing, this is an attractive way for a seller to avoid having to make repairs, pay realtor fees, and avoid several other hoops and expenses that come along with a traditional home sale. Reputable cash buyers will be able to help with this – not a scammer.
Expert or Scam? – Do Your Due Diligence
The offers are fair for sellers who want to cut out real estate agent commission fees, avoid staging, take photos, etc. The closing process is usually fast and easy. Most pay cash – which eliminates the possibility of a buyer’s financing falling through before the closing.
While some of these companies are incredibly helpful for sellers who fully understand the pros and cons, other companies are not so great and can even be predatory.
Will You Get Scammed On Your Cleveland House?
There are no regulations governing a home buying company and who can claim to offer a home buying service, which leaves the market open to scam artists.
These companies can appear legitimate, but there are some warning signs and red flags to keep an eye out for in this industry to signify home buying scams.
Knowing how the process should go, you can avoid falling victim to a scam. Here are some tips for spotting the scammers or inexperienced investors who will waste your time:
They Ask You for Money Upfront
A cash buyer asking you for any amount of money upfront is a major red flag for an off-market scam. The seller should never have to pay any fee before closing. The offer from a cash buyer should be free from real estate fees and commissions per their advertising and promise. Always be sure to ask them upfront to clarify any fees or costs you will be required to cover as the seller. Good companies will take the time to explain to you what could arise, how it will be handled, and offer friendly advice.
People Who Purchase Property – What To Look Out For
In addition to being leery of buyers who ask you for money, watch out for cash buyers who offer you money before closing, then claim that they overpaid. These scammers ask for a refund before the original check even clears, then they run off with the cash you handed over. Money should never be exchanged before the closing process, only during it. Again, have upfront and direct conversations with the company. They should be patient and take the time to explain the process thoroughly to you so that you feel comfortable and confident with the terms of the transaction. It is also a major red flag if their communication is brief, vague, or pushy.
You Can’t Verify the ‘We Buy Houses Cleveand’ Company
The first clue that you’re dealing with a scam is if the business wanting to buy your home doesn’t actually exist. A quick Google search can help you verify if a business is legitimate or not. Check the reviews and look for any complaints against the company. There’s even the option to see if there are any scam reports against the alleged company. If you can’t find the company, ask the representative you are talking with to send you more information. You can even go as far as to ask for a recommendation! Any local reputable company should have several previous homeowners to share with you a resource to speak to their work.
Avoiding A Real Estate Scam, Scams & Scammers – You Will Get A Gut Feeling
Keep in mind that these people are professional scammers. They may have business cards or a website, but you’ll always need to dig deeper. Take the time to investigate and ask questions about the business and process.
If you’re in contact with the buyer representing the company, ask them to verify their company’s name, phone number, and physical address. Scammers may take the time to create a website, but it’s more challenging to fake an address and get it to come up in a Google search.
Real Estate Agent With Missing Info Is A Sign Of The Formula Of Fraud
Any missing information that feels vital to you is enough to walk away from an interested cash buyer. If they can’t provide basic business company info, there is a good chance they are not an established and reputable company.
They Rush You to Sell Your House
If a buyer is rushing to purchase your home, it’s virtually impossible to collect the proper amount of information required to make a legitimate and fair cash offer. A proper investor will not offer you cash for a home they have not done their due diligence on. They should ask you about the roof’s age, damage to the home, known leaks or issues, dates of renovations or upgrades, etc.
A good rule of thumb to avoid a cash home buying scam is to walk away if you feel rushed or pressured to go under contract too quickly. The same applies to moving too slowly. If an investor takes their time, especially when it comes to providing key documentation, something is off. Companies like ours will work alongside you and ensure we are meeting your timelines and keeping you informed throughout the process of what is next.
You Can’t Speak to a Real Person
Only dealing with emails and internet forms instead of real people could indicate a scam. Although many homebuyers rely on digital communications like email and text, you should still expect personal attention before the closing. Digital or phone-only communication allows scammers to keep their identities private and make it hard for you to track them down after they’ve conned you out of money. When you’re working with a real person, there’s a far greater chance you’re talking to a legitimate buyer.
They Sneak High Money Fees & Cost into the Contract
Even “legitimate” companies can sneak dishonest fees into the deal. Before signing a contract, read over all the fees. Look for something like a market risk fee or similar charge folding into the closing costs. This could greatly reduce your sales profit, so a good deal might end up being incredibly unfair after all fees are accounted for. Ask your representative outright to explain any costs or fees that you will be required to handle. If they are not being forthcome or very vague, that is not a good sign.
Understanding the Real Off-Market Buying Process
Knowing how to watch out for a scam is only part of understanding the process of cash home buyers. Although all these investors function a little differently, the process in total is very similar to selling your home on-market.
Legitimate off-market buyers begin the process by asking you for details about your home. Many local companies will try to schedule a time to come see the property in person and meet you. This can, however, be done via phone, text, or email, but ideally should be done in person when at all possible. They will collect the information and present you with an offer based on the home’s current condition and other factors. There should be no fees for you at this point. This is also an opportunity for them to learn more about your situation and goals. Companies like ours will take the time to learn about you and your situation just as much as the property itself. Selling a home is stressful and can be complicated, we aim to work with you to ensure that our relationship is a good fit.
Offers To Sell Your House Are Rushed
Offers can come in as little as a day but sometimes take a few days or a week. You’ll have a window of time to sign the contract. It’s important to carefully read the contract before you sign, and do not hesitate to ask them questions. Ensure that all important dates, like closing and property transfer, are clearly outlined.
Before signing, check the contract to see the buyer’s policy on making changes or backing out of the deal. The original offer should be firm or non-changing in most circumstances. There are a few legitimate reasons that terms may change, but they are exceptions to the rule.
Since it’s a cash deal and there’s no financing to secure, closing is significantly faster than traditional financing and will be smooth. There is much less paperwork in a cash deal and less back and forth.
Sell Your Cleveland, OH House to Our Team
Our company makes the process a breeze.We are a professional real estate investor – an honest cash buyer.
After you provide some basic info about the property you want to sell, our property specialists will schedule a consultation at your convenience. We will take the time to learn more about the property, your situation, goals, and timelines. Should they arise, we will pay all closing costs and additional fees on your behalf. You will not be expected to make repairs or renovations as we buy houses as-is. If you accept the offer, we will schedule the closing and handle the transaction with you. The process is quick, easy, and stress-free!
If you’re in Northeast Ohio and the surrounding area and looking for a local expert to sell your home for cash with, we can help. We have purchased over 100 homes in the area, and our goal is to create environments where people live better.
Enter your address on our site for a free quote, or call us at 440-485-3938.
More Help & Assistance:
Houses in Probate | Distressed Properties | Housing Scams | Inherited Property | Cash Buyers | Off Market V’s On Market| Foreclosure