You’ve probably seen the signs offering cash for houses. These cash buyers were referred to as equity purchase companies (EPs) before the boom of social media. Now they’re sometimes referred to as “opportunity investors”—with good cause.
The emphasis should be on the word “opportunity.” These are companies that purchase homes from sellers who are in distress and must sell quickly. They might offer to close on the property with lightning speed, usually within 30 days because they don’t have to deal with arranging for financing. They offer cold, hard cash and typically waive inspection contingencies.
These offers often seem like lifelines to owners who are desperate to get out of their homes and loans as quickly as possible. Is working with one of these companies worthwhile? Learn more about “cash for homes” companies and how they work.
Selling your property is a huge financial commitment and therefore it is hugely important that you do things properly and deal only with established organisations and people.
There are some simple things you can do to ensure you don’t get scammed or misled by your house buyer or estate agent.
Here are some questions to ask yourself:
IS THE COMPANY LEGITIMATE?
It might sound obvious, but the first thing you should consider is the legitimacy of the company you are dealing with. In the 21st century, it’s easy to get a website up on the internet that looks reputable, and market yourself as a professional ‘fast house sale’ company.
These ‘quick house sale’ organisations are often merely middlemen, who will pass on your property sale and information to a third party. You should be weary of this, as most of the time it means that you will not be getting as good a deal as you would if you were dealing with the company directly.
What to Expect With Cash for Homes Companies
If you decide to call, the buyer will most likely make a prompt appointment with you to come to your home. They’ll want to know early in the meeting how much you owe on your mortgage. Everything begins with this number. If you still owe your mortgage lender that is likely exactly how much the fast-cash buyer will offer. They won’t budge and go higher. You’ll get just enough cash—maybe—to cover your loan balance.
CAN THEY ACTUALLY SELL YOUR PROPERTY FAST?
Another way to avoid scams is to assess how long it will really take them to purchase your property. On average, quick house sale companies can buy your home in 7 days. If they have given you a longer timescale this may mean that they are operating with a third-party company as mentioned above. It is also a good indicator that you may be involved in one of the many ‘buy your house for cash’ scams found on the internet.
