There are plenty of companies out there who will pay cash for your home. They are reputable, easy, convenient, and becoming more popular all the time. But there are also a few only interested in a quick buck.
When something becomes popular, like these investor real estate companies, there is always someone ready to take advantage. Here are a few warning signs you should look out for.
Warning Signs for Cash For Homes Companies
If you are planning on using one of these companies, please do your homework first. If you get scammed, it can be exceedingly difficult to catch them and get your home or money returned.
They Want You to Transfer the Deed to Them
Big fat no. There are several things here that can go wrong. First, never sign anything until you have the money. At least the earnest payment, that is often a percentage of the promised payment.
They can let you live there and ask you to pay rent. They may rent it out to someone else, even before you have been paid for the home.
They may promise they will continue to pay the mortgage but they won’t. You will still be stuck with that payment.
Plus, they could just sell it to someone else, like a legit cash for homes company, and then you are out of your home and the money owed to you.
They Don’t Live in The Same Country
They may only communicate with you online. While this alone isn’t necessarily bad, people can hide online very easily. They may tell you they are not in the country and ask for money from you to take care of some admin or processing needs.
They may also say they are in one country and be somewhere else altogether. VPNs on computers can be set up to show someone you are in Italy when you are in Greece. Avoid anyone not willing to meet up.
They Keep Changing The Deal
It’s not uncommon for everything to seem fine right up until the signing of the contract. But, they may start asking for small changes, but not showing you the entire agreement.
They may ask you to sign again, initial something minor when it is not minor at all. If you don’t read it all through, this could turn into a complete nightmare for you.
They Charge You For Extras
If they start a long list of things you are expected to pay for, like repairs, upgrades, inspection, and other fees that are normally only included with a traditional real estate agent, this is not right.
As most of these investors are interested in making the changes themselves or passing them on to people who do, the home is believed to be sold ‘as is’. If they tell you otherwise, they are trying to scam you.
They Provide False Documents
Everything from false ID to false bank documents as proof of money and many others. While many of these are easy to spot, there are plenty that may seem quite legal.
This should be a warning sign if they are too eager to share some of these documents before you even ask. If they attach something to an email during your initial connection, reconsidering moving forward with them.
Caution: Scams Ahead
It’s a sad but true commentary on society when people spend so much time and energy just trying to scam someone. We all like to believe Mother Karma takes care of Her own, but until then, please proceed with caution.
If you are interested in selling your home for cash to a reputable company, please contact Black Door Homes today.