Are Cash-for-Houses Companies a Scam?

Are Cash-for-Houses Companies a Scam

One of the fastest ways to sell your home is to sell it to a real estate investor. Many homeowners prefer this method because it helps them to avoid foreclosure and save money on real estate commission, expensive renovation, and repairs. Unfortunately, not all cash buyers are legitimate, and there are plenty of scammers. If you decided to sell your property to a cash buyer and want to make sure that it is safe, here is what you can do to avoid scammers. 

Make Sure Their Company Really Exists

The best way to find out whether the company really exists is to do some research. You can start by asking them simple questions:

  • What is the name of the company?
  • What is the company’s actual address?
  • Will it be possible to come by for an appointment? 
  • Who is the owner of the company?
  • Does the company have a website?

If you do not get the exact answers, do not be afraid to push for more information. If the company is trustworthy and reputable, they will be more than happy to provide you with all the information you need. If you feel uncomfortable asking these questions directly, you can always run a Google search on the company. Another good resource to check is the Better Business Bureau. If the company is not listed on this website, it is a red flag. 

Avoid Investors Who Are Too Eager to Buy Your House

A reputable real estate investor will want to have information about your house first before giving you a cash offer. They need to understand the situation first, inspect the property, take a tour, and learn as much as possible about the house. This is a significant investment for them, so they are not going to rush and offer money for the house they do not have information about. It is quite unlikely that a real estate investor will give you a cash offer without even learning more about the property. That is especially true if you are selling an old house or property in a less-than-stellar condition. 

Stay Away From Companies That Do Not Provide Necessary Documentation

If you are dealing with a reputable investor, they will offer you a deposit or some proof of funds, which proves that they have the necessary amount to purchase your home as they have suggested. Trustworthy real estate investment companies always want to create trust with their sellers to make the transaction mutually beneficial. A scammer, though, may not provide the necessary documentation, which is a sign that they have something to hide. 

Be Careful With Companies That Ask You to Pay for Something

You should understand that if you are selling your home to a cash buyer, money in the transaction should always flow in your direction and never from you. That means that if a real estate investor is asking you to pay for something (for example, a processing or administrative fee), most likely it is a scam. Do not give them your money, and then report them to the Better Business Bureau. Even if an investor is asking you for a small amount of money, it is suspicious. 

Sell Your Home to a Reliable Real Estate Investor — We Buy Houses Tulsa

If you are looking for a trustworthy investor to sell your property in Oklahoma, We Buy Houses Tulsa is your perfect choice. We are more than just another real estate investment company – we are a group of homeowners, just like you, who know how stressful and exhausting the process of selling a home can be. We will do our best to make this process as easy and straightforward for you as possible. We buy homes in any condition, and we do not require any repairs. We are ready to purchase your property as is and pay you cash. Do not hesitate to contact us to discuss the options available.

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