The real estate market is changing, with more sellers resorting to cash home purchasers for a quick and easy selling procedure. These buyers, who are frequently investors or businesses, can complete transactions swiftly and without the usual financial contingencies. However, as this trend continues, so does the possibility of scammers, leading vendors to question the veracity of these quick cash offers.
This post attempts to help you maneuver the difficulties of cash sales, including tips on how to identify fraudulent buyers and ensure a smooth, secure transaction.
The Buyer is Foreign
You may be contacted by a buyer through a website or an email. The buyer may explain that they live overseas and will need a place to live once they get back to the States. They then offer to send you a cashier’s check to secure the house but then contact you a few days later, telling you that their plans fell through and they need a refund. Some even offer you some amount from the check to apologize for the inconvenience.
However, the check will bounce after you refund them “their” money. The fact that this buyer is foreign — and wants to buy the home sight unseen — is a red flag. Why? Most people want to see a property (or at least have their agent see it) before buying or at least be somewhat familiar with the area. This scammer doesn’t, isn’t, and probably won’t even ask questions about the property. (1)
The Unavailable Buyer
Sure, you believe your house is wonderful. But be wary of the enthusiastic we buy houses Shelbyville companies. Being enthused about your house is one thing, but a buyer who appears to be overly eager to send earnest money or a hefty down payment before seeing it can be a red flag. Similar to the foreign buyer scam, they will be unable to see your home in person or take phone calls, but they are still very interested in purchasing it.
They may make an offer above your asking price, provide cash, promise to put earnest money into an account or engage in a cashier’s check or wire fraud scheme. It’s worth noting that some legal cash home buyers in Louisville acquire residences remotely. However, they will usually have an agent who guides them through the house via video call or negotiates on their behalf. This is where your agent can help you distinguish between the real and the false.
Title or Deed Buyer
When you sell my house fast Shelbyville, you may fall prey to a title or deed scam. In this instance, you may find your home snatched from under you – literally. These scammers frequently steal your mail in order to get confidential information, as well as falsify signatures or other documents in order to assume ownership of your property. They may try to take out a debt against your property.
While you can typically solve the problem, it is an expensive procedure. Keep an eye out for missing mail, suspicious activity on your property, or a decline in your credit score. All of these are signals that someone has stolen your identity (missing mail and a reduction in credit score) or is attempting to mortgage your home (strangers on the property). Landlords and vacation homeowners are especially vulnerable because it can take a long time to detect something is amiss.
The foreclosure relief offer
Distressed homeowners who have not paid their mortgages consistently may face financial difficulties of a different kind if they fall victim to a foreclosure hoax. Foreclosure relief scammers target homeowners who are about to lose their homes, proposing to alter their existing loan or stop the foreclosure. Is there a catch? They want money upfront.
While there are reputable we buy houses Louisville, KY firms, and charities that assist homeowners facing foreclosure, they do not require advance cash. Be careful of any firm that wants payment before services are given. Check the company on the Better Business Bureau, check out their website and internet reviews, and if you can’t find much information or they’re raising other red flags, run.
The Fraudulent Investor Buyer
This buyer is an “investor” who pressures you to put your house under contract. They usually do not put down any earnest money or provide references. That’s because they don’t have the funds to buy your home; instead, they’re putting it under contract in the hopes of selling it to another investor for a profit or a finder’s fee later. If they are unable to resell the transaction, you will have lost crucial time while your home was off the market.
You won’t lose any money, but you will lose time that could have been spent selling to a reputable we buy houses in Shelbyville company.
The Check-Bungling Buyer
This buyer claims they unintentionally sent you too much money and will ask you to reimburse a portion of it via wire transfer immediately after you deposit the check. They’ll say they didn’t expect to put that much down on the house. Because you get to retain a piece of the check, you’re less concerned. However, in a few days, the check will bounce, and you will be unable to retrieve the reimbursement you sent them.
Buyers Who Overwhelmed You with Details
When you sell my house fast Louisville, to this buyer, they will provide you with thorough financial records and personal information right away. This is significantly more than you would expect from an initial home sale inquiry. They send bank and financial statements without being asked to “prove” their ability to pay cash. In this case, apply common sense.
Would you send your financial records to a stranger? Probably not. While verification of funds is required in a valid cash transaction, the information is always shared between your agents and the escrow business. While they may be eager to supply lots of fake financial information, they may lack references, a social media presence, or any other legitimate verification of their existence. Professional agents vet the buyer adequately to make sure they’re writing a good deal for their seller, and it’s actually going to close.
This involves confirming finances and, in some cases, determining whether the buyer is who they claim to be.