Whether you live in Florida or any other state, you’ve probably noticed signs that say “We Buy Houses!”, “We Buy Homes for Cash”, or even “We Buy UGLY Houses!” And you’ve probably wondered if these are legitimate companies, and who is behind them. These companies could be house flippers or legitimate property investors. However, they could also be less reputable and less trustworthy; and are interested in taking advantage of homeowners that are struggling financially and need to sell their home. Thus, you need to look at the red flags before dealing with any individual or company.
A legitimate cash home buying company will buy your home quickly for cash and save you a lot of money on closing costs and fees as well as any repairs, violations, liens and commissions. Unfortunately, some companies are looking for struggling homeowners to prey on and scam them out of their properties. Like any other industry, the We-Buy-Homes industry is not immune to scams. Here is what you need to watch out for:
- Are they trying to force you into financing the sale of your home? These buyers typically try to convince you into maintaining your mortgage but only pay you cash if you sign the deed over to them. Although they may promise to make the payments, it will ultimately come back to you and you’ll be left holding the bag.
- Is the investor legitimate? Is the business genuine or just some Google voice number or sign? Are they licensed? Do they have proof of funds? Where are they located? Do they have a business history, online reviews, or a website? Remember, you have every right to investigate the buyer and to protect yourself.
- Watch out for the old “Bait and Switch” – once an illegitimate investor has the contract, this is usually when the deal starts going sideways. For example, you might be expecting $170,000 but at the last minute, they call and tell you that they can only pay $120,000 due to the amount of work needed for your home.
So how can you protect yourself from a We-Buy-Houses scam? Here are 5 ways you can ensure that you’re not being scammed:
- Ask about their expertise and how long they’ve been in business (get proof)
- Make sure they have a local physical address
- Get Proof of Funds
- Read the agreement or contract thoroughly, INCLUDING THE FINE PRINT
- Verify the Company and all Credentials by researching reviews, BBB, etc.
- Finally, and most importantly, ALWAYS trust your gut. Remember, if the deal seems too good to be true, it probably is.
Additionally, you always have a choice to deal with a reputable and trustworthy company, call Homeinc today at (888) 850-2636 for more information. With over 350- 5 star reviews, you can trust the advisors at Homeinc.