Here’s How to Find a Reputable Texas Buyer and Not Get Scammed
Let’s face it. Selling your house is a huge decision. For most people, it may just be the most monumental financial decision you make in your lifetime.
But because life happens, you may not be in a position where you have the time, money, or resources to sell your house the traditional way.
That’s where selling your house for cash comes into play. Before you consider this option, make sure you know what’s involved in the process of finding a cash buyer.
Here, we give you the low-down on everything you need to know before you sell your house for cash so you don’t get yourself ripped off. After all, selling your house is a big deal and you don’t want to look back later to see you could have gotten tens of thousands of dollars more out of the transaction.
Let’s take a closer look at everything you should know before selling your house.
Here’s What You Need to Know Before Selling Your House For Cash in Austin, TX
Here’s a story about what happened to Janet when she sold her house for cash without doing her research first.
Janet was a recently divorced mother of 3 who needed to sell her investment property to buy out the home she shared with her ex-husband. Her investment property needed some major repairs if she wanted top dollar for it, but she didn’t have the money or the means to make those repairs.
Strapped for cash and with a full mortgage payment knocking at her door, Janet needed to liquidate her investment property to keep food on the table and a roof over her children’s heads.
She began looking for offers from people who would buy her house for cash. She contacted several buyers through their websites and received several offers.
One was low at $70k, two were around $90k, and one was high at $140k. She knew her house was worth $140k after all the repairs and figured the buyer knew something she didn’t.
After speaking to the buyer who gave her the highest offer, she thought he sounded trustworthy and understood her situation. She accepted the highest offer – thinking it would be the best for her family.
Once the sale moved into escrow, the buyer ordered an inspection and an appraisal. The inspection showed all the repairs Janet had already disclosed. When the appraisal arrived, the buyer claimed her home was valued at $60k and he wouldn’t pay any more than that.
Weeks had already passed since Janet set out to sell her house. She needed the money right away and couldn’t wait any longer. She ended up selling her house for $60k to this buyer who turned around and sold the contract to another buyer. Janet later saw her house sell on the market for $150k.
A big mistake had been made.
Janet could have gotten way more for her property by doing some basic research and looking for signs that would have safeguarded her against this buyer’s scammy tactics.
Here are some key points to look for when selling your house for cash:
- Realistic offers – Amounts that are not too low or too high. Realistic offers indicate investors that intend to purchase your property, fix it, and sell it for a reasonable investment for the time and money – not to rip you off. Low offers rip you off from the beginning. Unreasonably high offers may be a sign someone is planning to rip you off later.
- Accreditations – Ask if they are certified with the BBB or other recognized real estate institutions.
- Past client testimonials – People who make this business part of their livelihood shouldn’t have any trouble providing you with references or testimonials from people they have dealt with in the past. If you can find genuine feedback from others, it’s a good indication you are working with someone legitimate and not out to scam you.
- Earnest Money Check – These are checks deposited into a broker’s account indicating the buyer’s “earnest” intent on purchasing the property. If no earnest money is offered, it may be an indication you are dealing with someone who doesn’t have money and plans to sell your contract to someone else for a profit – at your cost.
- Proof of funds – You can always request a financial statement with proof of funds from the buyer before signing a contract so you know they have the means to purchase your property.
There are many reasons to sell your house for cash rather than go the traditional route and sell through a real estate agent. Not all buyers are created equal, however.
Here are some common things to watch out for when selling your house for cash.
Make Sure You Avoid These Common Home-buying Scams
People often think anyone buying someone’s house for cash is a scammer who’s out to “steal” the equity of your house from you.
The truth is, it takes a lot of time and money to get a home into the right condition to sell – time and money you often don’t have.
Just think, it takes money up front to make repairs.
Additional repairs may be discovered along the way, requiring more cash to fix.
After all, repairs are made, it’s still no guarantee there will be a big return on the investment.
Investors take a calculated risk to buy a home that needs repair – not to mention the real estate fees and capital gains taxes they will encounter on the sale. It’s quite possible investors could walk away simply breaking even or making very little money.
On the other hand, selling your house for cash comes with some real perks:
- No stress of having to repair and/or sell your house yourself
- No real estate fees
- No repair costs
- Cash in hand as quickly as possible
There are many circumstances under which people would want to sell their homes quickly. When you make that decision, make sure you watch out for these common scams:
- Unrealistically high offers
- No offer to buy as-is, allowing them to set you up for a bait and switch offer
- Unwillingness to meet with you in person or speak to you over the phone
- No earnest money checks
- Application fees or other upfront costs
- They’re not listed with the BBB
- They have no legitimate customer reviews
- They stall making a deal in hopes you will get desperate and accept a lower offer later
Scammers will definitely pull all the tactics from up their sleeves to squeeze every last dollar out of you. But there are tell-tale signs. Follow your gut, pay attention to the signs, and make sure you work with people who have a solid reputation and make you feel at ease.
Here’s how to find honest investors to pay real cash for your house – fast and without scamming you.
How To Find Reputable Texas Investors Who Will Pay Cash For Your Austin Home
No matter your circumstances, there are many reasons and situations where selling your house for cash is the right choice for you.
Jerred Buys Austin Houses is an excellent real estate consultant in the Austin, TX area who works in conjunction with Midtown Title to buy your home at reasonable and competitive prices.
Sell your house as-is with flexible closing dates with a buyer that promises transparency throughout the process.