Most people think that “we buy houses for cash” investors are a scam. This is because these investors buy houses at a low price and sell them for more. Well, this may be true, but only partially. Let us look into what these home buyers actually do:
Cash Home Buyers: Genuine or a Scam?
“We buy houses” investors are cash home buyers that aid homeowners in selling their old, damaged properties or houses with legal issues. Depending on the market and property’s condition, they make a cash offer, which is fair for both parties.
Since they close deals quickly, it is considered the best option for those who do not have enough time to list their properties on the open market. Also, these investors never ask for commissions, closing costs, and any fees. Additionally, “we buy houses” is an ideal option if you cannot afford prior repairs and renovations. It is because they buy properties as-is with no cleaning, repairs, and upgrades.
These buyers are the best home selling options for homeowners struggling to find the right buyer.
If you want to sell an Oakland County home fast for cash, Detroit Cash For Homes is your companion. We buy houses in any condition in Oakland County without any investment of money and time. We guarantee a fair cash offer regardless of the age and damage your home bears.
Despite the fact “we buy houses for cash” is legitimate, we cannot deny the fact that scams exist. We have heard numerous horror stories about these scams. To be on the safer side, here are a few guidelines to dodge these scams:
- Common we-buy-houses scams
- Application fees – If your potential cash home buyer asks you for application fees to evaluate your home, it is a red flag. They might be scammers.
When it comes to legitimate real estate investors, they do not charge any fees and commissions. They only make money by purchasing a property, remodeling it, and reselling it for cash. - Upfront charges scam – Your cash home buyer has asked to pay an upfront fee before moving ahead with the selling process. RED ALERT!!! No reliable estate buyer will ask their clients to deposit anything upfront.
- Kitchen table closings scam – As a fact, all closings happen at a title company or attorney’s office. If your buyer suggests signing over the deed at your house or any other place, they may be rouge buyers. At a title company, there are authorities to make sure everything is handled well.
- Equity skimming – Another common yet elaborative scam that you may face is equity skimming. In this, your prospective investor buys your distressed property with a promise to return them when things are fine. But they refinance it and take (mint) out all the cash.
- Too much information – If your buyer gives too much information, like pre-approved loan letters and phony bank statements, there is something fishy going on. Usually, untrustworthy investors present this information to make them appear legit. It is advisable to go through these documents thoroughly before signing any agreement.
- Application fees – If your potential cash home buyer asks you for application fees to evaluate your home, it is a red flag. They might be scammers.
These are some cash buying scams you need to be aware of when selling your home for cash. By keeping them in mind, you can save yourself from wasting your money and time. Unlike other industries, real estate also is not devoid of scams and frauds. So be cautious about to whom you sell your home.
If you are searching for a reliable cash home buyer, get in touch with Detroit Cash For Homes. We buy houses in Oakland County as-is to ensure faster and hassle-free home sales. Call us today to know more!