Hank Researched to Determine Truth About whether “Cash for Houses Scam” and “Cash Home Buyer Scams” -Check Out Our Free Guide
Determine the Truth About whether “Cash for Houses Scam” and “Cash Home Buyer Scams”. If you’ve been Driving around Town, chances are you’ve seen some Billboards Advertising Companies that Buy Houses, of Yellow Signs. You may also receive Yellow Letters. Often times they say things like “Buy Your House“, “Pay Cash“, “Home Buyers“, “Buy Ugly”, “We Buy Houses!” or “Cash For Your House“. Are these Legit Cash Buyers? Is it Legal? .
Are these “We Buy Houses Companies” credible? How can the Cash for Houses Scam and Cash Home Buyer Scams exist?
How do I know if the local house buying companies out there are honest and credible?
Well… sometimes they all look the same at the start… but below we’ll walk you through some things to look for in a local house buying company before you should work with them.
Buying and selling houses is a valid and respectable profession that can help communities and house sellers in many ways. But just like any other line of work – a minority of house buyers in any market are the ones who make the rest of us look bad.
There are people who are really great, ethical folks who improve their neighborhoods one property at a time.
And then there’s shady, dishonest people who put money ahead of the well being of their clients and who would sign the contract to sell their own grandmother with one hand while stabbing you in the back with the other – as long as they were making enough money.
Yes, they are out there.
We’ll help you avoid these “shady house buyers” so you can work with honest, ethical, and reputable local companies who can buy your house with fair all cash offer and close on your schedule.
But let’s not focus on the negative – at least not yet.
First, let’s cover exactly what the best house-flippers are doing. How to avoid cash home buyer scams!
What Reputable House Buyers Are Doing
So, you need to sell your house. Selling in a market like today’s can sometimes be frustrating. With so many other houses on the market it gives buyers out there more choices… and often times sellers can wait 3, 6, 12+ months to sell their house at price they feel is fair.
This brief guide will walk you through the decision process to help you decide what’s best.. Do you go the traditional route and work with a real estate agent, sell it yourself (FSBO),or work with a real estate investment company?
Each of these strategies have different pros and cons and each one will help you reach a different goal. It’s really to look and see what you need to accomplish with the sale of your house… then make the decision that helps you get there.
To Sell Your House Like I mentioned above, there are 3 real options. I’ll dive into those 3 options a bit more below and spell out what’s great about each… the drawbacks of each… and who each option is really going to help the most.
1.Working With A Real Estate Agent
- The most popular way to sell a house today is by working with a real estate agent. The general process of working with an agent is… You contact an agent and they visit with you about your house to determine what they feel it may sell at ($$). You generally sign a listing agreement with the agent (normally 6 months) where they exclusively represent and sell your Home, House, Condo or Mobile Home.
- Agent lists property on the MLS, markets it, and takes buyers through your house, going thru multiple showings (a house should show well to sell well) If a property sells, the agent takes care of the paperwork and negotiation with the .. and the agent collects their fee… which is usually 3% them and 3% to the agent that brought the buyer (so up to 6% of the total purchase price of the house). In addition, you pay closing cost and go thru inspection period.
2. Selling By Owner.
- Lots of people think of house-flipping as a get-rich-quick scheme. That’s fueled by silly “reality” shows that amp up the drama because the reality of what we do on a daily basis is actually pretty boring. While you can make money flipping. It can go wrong fast. If you sell by owner you must run your own ads, stage your own homes, write your own contracts and handle all showing. Bottom line is there isn’t much value in selling by owner vs selling to a cash buyer.
- Most of our work is coordinating with lots of people to make sure things are happening on time. We have to keep track of lots of moving parts.
- So let’s get back to how you can use this information to find out if someone is a credible investor, and not just pulling a house buying scam.
3. Work With Real Estate Investment Company
When you talk with a local house buyer to potentially buy your house… ask them some of the questions below to ensure they’re reputable, knowledgeable, and honest.
Ask open-ended questions like:
- How do you help your clients?
- What do you to help people?
- Can you tell me more about your services?
- What aspect of your business makes you the most proud?
- How would you describe your investment philosophy?
- How can I know that you’ll close on my house when you say you will?
Second, look at tell tale signs of tactics that those few shady operators tend to use.
- “Kitchen table closings” – If a property buyer tries to get you to sign the deed (ownership) of your house over to them at your house, rather than a professional place like a closing attorney or title company… be leery. Most reputable house buying services will perform the actual closing of the sale at a neutral 3rd party place… like a title company. This ensures everything is done right and on the up and
- Pressuring you into a fast closing – If a house buyer tries to pressure you into selling your house and says that you have to make the decision today, be leery. Most reputable house buying services will make you and offer and that offer will be on the table at least 2-7 days (minimum) you to make the decision. The reason reputable house buying services like ours at hank buys homes do place deadlines on our offers is because the market changes and values can change week to week depending on other sales in the area, also… we buy multiple houses a month and when we make you an offer we’re assuring you that the cash to purchase your house is ready and we’ll reserve that cash so if you do want to sell your house, we can close on your schedule. If you feel the offer isn’t a fit, then we’ll assign those funds to help another seller with their home sale.
- Most cash for houses scam companies are looking at quick score, and not an in-depth interview.Chances are good that they’ll find excuses to get off the phone and move on to someone who doesn’t ask too many questions. Chances are good that they’ll find excuses to get off the phone and move on to someone who doesn’t ask too many questions. True investors who run honest and ethical Central Florida house buying services, however, are building long-term businesses based on relationships and community development.So when you’re looking at one of the “We Buy Houses Cash Fast As Is Companies”…never be afraid to ask questions.Give us a call anytime at (407) 410-3240 or fill out the form on this website today! >>Should you decide to sell to a cash home buyer? What are the advantages? Where can you find them?
If you are considering selling your house, a cash home buyer might sound like an appealing option. The big questions most property owners have are how much they can really expect to get from a cash buyer versus others? If the math might work out in your favor, what are the pros and cons of the different ways to connect with them?
What is a Cash For Houses Scam or Cash Home Buyer Scams? How they work?
There are three main types of house buyers out there in the market today:
- Buyers needing a bank mortgage loan financing.
- Buyers seeking seller financing opportunities.
- Buyers who can and are willing to pay all cash.
Despite some of the hype and marketing out there, cash paying buyers who would actually want to live in your property are very few. Consider that less than 90% of the population has $5,000 in savings.
That means you’d be hoping to land the top 10% of affluent people to purchase your home. In most cases these wealthy buyers also prefer to finance their purchases because they are looking at more expensive homes, are seeking tax advantages and asset protection benefits of having a loan on their home.
What is more common to find is cash buyers who are real estate investors. They are willing to pay all cash to enable a swift closing and to avoid finance costs. This group is typically looking for properties which they can fix up and rent out to tenants, or can renovate and update to resell later on.
Those that really have the money typically organize themselves as businesses. They may even be funds or partnerships which have the combined capital of a number of private investors. So, to summarize the purpose of this report we are focusing on finding a cash home buyer.
How to Find a Cash Home Buyer for Your Property
There are a variety of ways to search cash buyers. Let’s take a look at some of the pros and cons of each.
You can simply try to Google “we buy houses companies in (your city.)” or “sell my house to an investor in (my city).” It’s fast and easy. It can save a lot of time and money versus trying to do a bunch of DIY marketing to attract buyers to you.
Recently there has been a big explosion of people trying to get into this space to buy properties. Some are good. Though there can also be a lot of work to do to separate the newbies and opportunists from the serious and those that really have the cash to buy.
Craigslist has taken over as the most popular classified ad platform. You can post your property there too.
Listing your property on Craigslist.com is pretty fast and easy. It is even free in some cities. This allows buyers to find you, instead of you having to look.
It can be harder to be found on Craigslist than you think. Many scammers and Realtors use it, and can bury your house listing under hundreds of others within minutes or hours. Even if that doesn’t happen, you might find you just get bombarded by low ball offers from those looking needingabsolute steals, or have to try and filter out all the scammers and criminals. Or you may just get dozens of calls from agents who want to list your house for sale, not buy it.
How much a buyer of any type will offer and pay depends on a variety of factors:
Condition of the Home
Many regular home buyers who are needing somewhere to live, or who are new to investing in real estate may make a lot of demands when it comes to condition and repairs. Or they may just be scared off, because they aren’t sure how big the job is, how much it will cost, or they don’t have the cash to do it.
If they do make an offer they are likely to include clauses which allow them to back out after inspections, or require you to pay, and possibly make the repairs before the closing. That can be risky as a seller as they may not close, even if you have the money to do it.
The best cash buyers will be willing to purchase you home “as-is.” It doesn’t matter if your home could just use a few touch ups, needs updating, or has serious water, wind, or fire damage… they will buy it. However, they will have to price these factors into their offers, as these are items they will have to pay to fix out of their own pocket after they buy it.
How appealing is the neighborhood right now? Are there a number of other properties selling? Have they been taking a while to sell? How are they priced compared to yours? Do neighboring homes and neighbors look appealing and friendly, or are they detracting from your home’s value and rental potential?
Macro Market Factors
The economy and housing market in general definitely play a role in how much people should be willing to pay to aquire your home. Have interest rates gone up, or are expected to go up? This could make the home far more expensive in real terms, even if the price isn’t any higher than a few years ago. It could make it a lot harder to rent or sell in the future. What direction is the market headed in? If it has been going up, it could be about to head down soon. A buyer may have to factor in that they’ll be taking a 10% to 20% drop in the value in the months ahead. The same goes in regards to renting.
Net Proceeds to You
If you list with an agent, they may promise you a higher price that they can never get you. You’d also have to pay at least one or two agents a commission. That can mean a 6% loss right off the top, and you may have to pay taxes on that money too.
You won’t have to pay those commissions if you go direct with a cash buyer. This also means being able to sell a lot faster, and avoiding more holding costs, and the risks that can come with waiting. Expect there to be some balance in this priced into the offer.
Ultimately the best way to find out how much a cash buyer will pay to acquire your home is to reach out and contact one that is local. It doesn’t cost you anything to ask, and you might be really pleased with the number.
The Benefits of Selling a House to an All Cash Buyer
Aside from just getting all cash right away, there are an array of important and very valuable benefits of selling directly to an all cash buyer.
A traditional real estate closing through a real estate agent, with a financed buyer can take a long time. It can sometimes take months to coordinate appraisals, title, insurances, and loans. That’s after you sign a contract. A cash buyer can typically close in a matter of days. Though the best will also work with you on a closing date and time that works for you, if you need more time to move.
Going to contract with a buyer relying on financing can be very risky. Especially now. There can be a lot of extra demands on you as a seller. Lenders can be very fickle and you never know when the deal will all fall apart. The borrower could lose a job, change their mind, the appraisal may come in short, lenders may demand repairs to be
made in advance, or they may just run out of money before the transaction is funded.
Unfortunately, this often all happens at the very last minute. Then you may be left starting all over from scratch.
Or if your home is vandalized, a storm hits you, a neighbor sells cheap, or the market changes during the long process, the deal can be cancelled, and you’ll have to try to sell it again, but this time at lower price.
All of the above, including the marketing time of taking the DIY by owner approach and doing your own marketing, or waiting on a real estate agent can mean months of stress, uncertainty, and sleepless nights. Selling should be a positive thing, not a stressful one. You don’t need to put your health and sanity, or relationships at risk, like that if you choose a cash buyer.
Higher Net Proceeds
While a cash buyer may offer a little less than a Realtor is willing to list at, you can still end up pocketing more money, and that’s what’s really important. This is due to fewer costs, as well as avoiding the risks of waiting, and the expense of holding costs. Every day you wait on a closing means property taxes, utilities, and often interest, association fees, and even legal fees too. That all comes out of your net cash. Close faster with a cash buyer and you’ll keep more of the sales price.
There are actually many tangible advantages of selling direct to a cash buyer. There are a number of ways to find or attract them too. Each has its pros and cons. Equipped with this information you should be able to make an educated decision on what’s best in your situation.
Ready for an offer? Ready to not be taken by a cash for houses scam?