While selling your house to cash buyers, you don’t want to end up paying them. Isn’t it?
When you are eager to sell your home, it is natural to get fascinated by profitable offers. However, the more attractive the offer is, the more are the chances of it being a real estate scam.
Where a legitimate cash buyer will provide a convenient way to sell a home fast, a scammer will be interested in robbing your hard-earned cash.
As the real-estate business is plagued with scammers, we are here with some red flags. If any of it pops up during your home sale, be on guard.
Here are the five signs to help you differentiate between a trustworthy cash buyer and a scammer.
1. A believable Identity
Imagine this. You get an email from a foreigner looking to buy your home as they are relocating to your city. He loves your house and its location and wants to buy it without seeing it. Though he isn’t aware of the local community or neighborhood, he shows a very keen interest in your house thus, offering to send you a cashier’s cheque. Despite being interested in making a deal, he is hesitant to arrange a phone conversation and throw another story about jet lag, time zone changes, etc.
While this might seem to be a genuine offer, it can be a potential real estate scam.
It is because most of the buyers prefer inspecting your property and getting familiar with an area before making the final deal.
2. The buyer discloses his financial information.
There is a common perception that if a buyer shares his financial statements, he is unlikely to default. However, it’s the opposite.
If your cash buyer is sharing his bank account records and financial details over the initial emails, it can be a warning sign to watch for.
Crosscheck and get this information verified from a trusted source as these records can be fabricated and fake. Not just bank accounts, do not trust any piece of information your buyer sends you, and instead check the accuracy of it.
3. The Cash Buyer is Eager and Makes a Mistake
Selling your home for cash is all about how your cash buyer is going to pay you. Don’t worry. A scammer cash buyer will be eager to pay you. Beware! It can be a money heist.
You might come across a situation where the scammer will overwhelmingly send you more amount than agreed upon through a wire transfer. Concocting a devious plan, then he might ask you to refund the extra amount. If something similar happens, never send the money as it could be a forged cheque, and you could be the one losing your money.
4. Unprofessional Conduct of the Buyer
Reputable Cash Buyers are very professional and understand the inside-out about the real estate business. The reliable cash buyer will coordinate with the buyer personally. They will not mind if you wish to get any papers examined by a third party. Also, they would not put unnecessary high-pressure tactics to get it signed faster.
Not just this, legitimate home buyers have professional email accounts and contact numbers, and they won’t be using any free email services. So next time you get an email from a personal account, raise your red flag as it can be a scam.
5. The Buyer Has No Reference, No Money
Genuine real estate investors are expected to have purchased houses for cash in the past. Thus, you can ask them the details of their previous clients and check the details of the purchased property.
If they refuse to share the list, you are probably dealing with a cheat.
The majority of people offering to buy houses for cash do not have the money to buy them. So before making any deal, ask for their bank details and get them verified by a reputable organization. You can also ask them to deposit 5-10% of the purchase price, which can be non-refundable.
While you shouldn’t turn away from every potential buyer looking to buy your house for cash, always keep a close check on your buyer’s activities. Raise a warning flag if you come across any doubtful situations.
In case you come across any scammer, try not to engage. Research his background before making a deal or transaction. You might be surprised at what you find.
However, credible cash buyers do exist. Want any help with your real estate needs? We at Sole Source have dedicated professionals who have extensive experience in real estate. For any assistance, call us today.