How to Spot a Cash Home Buyer Scam

Most everybody has heard of cash home buyers. They advertise that they’ll buy your house, as is, for cash. The problem with this is that it makes it difficult to spot a real cash home buyer from a fake one.

When you need to sell your home fast, or otherwise just want to be rid of it, you probably just need a buyer. But it can be difficult to find a buyer in such a complicated and fluctuating market. Cash home buyers can help in situations like this.

When it comes time to sell your home, you want to know you’re selling to someone you can trust. You also want to know that you’ll be paid. Tha’s why you need to be careful to watch out for scammers.

Real offers on your home can sometimes sound too good to be true. But when you learn what the scam artists are up to, you’ll be able to recognize those sour deals compared to the real ones. Keep reading to learn more.

Cash Home Buyers Scams

Knowing what to look out for when selling your home to cash buyers is the first step to ensuring a safe and pleasant transaction. Don’t just sign up for the first deal that comes your way. Make sure to do your research on the cash home buyers you choose.

Here are a few scams to watch out for:

Email Buyers

If you get an email from a potential cash buyer, be wary of spelling and grammatical errors. This could be a strong indication that you’re dealing with a scammer.

Also, watch out for those that reach out to you by email and provide financial documents or information up front. They are trying to lure you in with proof that they can purchase your home. Meanwhile, the information they are giving you is all fake.

Email scammers may tell you that they have cash in hand and they want to wire you the funds. They have even gone so far as to ask homeowners to get their own lawyers and real estate agents involved. Watch out, it’s a waste of your time.

Foreign Buyers

Foreign buyers will often contact you by email stating that they saw your property online and fell in love with it. They may also note that they’re moving to the United States soon and are in a hurry to make a purchase.

Just as with any email scam, they might send you copies of important documents and bank statements in an effort to get your attention. The buyer will not ask to see the home and they’ll be eager to send you a check right away.

There are cases in which homeowners have fallen victim to these scams. The homeowner received a check as promised by the buyer.

The buyer then wants the homeowner to send the difference of the amount back to them via wire transfer. What the homeowner doesn’t know is that the original funds are not valid and will never be available to them. Even after they send the money back.

In most cases, homeowners lost not only the cash difference that they wired back but also the time and energy associated with the process.

No Haggles

Sure there might be people out there that don’t feel the need to haggle over price but most people do anyway.

If you have a cash buyer that just simply wants to buy your home at the listed price, maybe for even more, it’s definitely too good to be true. A legitimate cash home buyer will want to negotiate their way to a fair price for everyone involved.

No Questions

There are a lot of things to consider when making a home purchase, no matter who you are. You’ll want to know about appraised value, various inspections and their outcomes, and maybe even zoning regulations associated with the neighborhood.

A scam cash buyer will want to buy your home, no questions asked. They’ll have the money prepared up front and try to guide you through the process so that it feels quick and easy. They’ll make you feel like there are no reasons to ask questions either.

Be wary of home buyers that don’t want to know more about the home than the asking price.

Check Scams

Similar to the foreign transactions, check scam buyers will want to buy your home for cash for a higher amount than what is listed for. Before checks they have provided you clear, their intent is to have you wire them money.

If a cash home buyer offers to send you money for more than the amount of your home listing, it is not legitimate.

Investor Scams

Some scammers camouflage themselves as investors to make the details of their scam seem more legitimate.

Always ask investors about previous transactions that they’ve handled, and follow up with the courts to see what happened with those sales.

Be on the lookout for unprofessional behavior such as advertising efforts or their telephone greeting.

A serious investor will provide you with bank information so that you can verify that they have the funds to purchase your home. Get this information from them as soon as you can. A scammer probably won’t offer you their documentation in this case.

Legit Cash Home Buyers

There are legitimate cash home buyers available if you’re in a bind and want to unload a house for various reasons. You’ll only get about 60-80 percent of the market value of the home.

Legit cash buyers will close on your house, and the mortgage will be paid off. You’ll receive your check at closing just as with a typical home sale.

Watch out for scams that sound too good to be true. They probably are! Make sure your home buyers are licensed and professional.

If you’re looking for cash home buyers, look no more. Contact us for fast cash offers.

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