When Are Home Cash Offers a Scam?
While some investors and iBuyers can make a good deal out of buying homes for cash, there are some scam artists who use this as an opportunity to take advantage of unsuspecting homeowners. Here are some signs that you should look for when trying to weed out potential home buyers who may be scams.
First, the potential buyer needs to be willing to visit your home in person before the contract is finalized. Some online companies will be happy to send over financial information over email, but if the buyer is unwilling to see your home or want you to do anything else, this is an early sign that they aren’t trustworthy.
Another red flag is if the potential buyer asks to wire you money right away after you deposit their check. This is a common tactic of scammers, but it’s best to be wary of any cash buyer who requests this. You should also avoid any buyer who asks you to pay a down payment, as this is typically a sign that they are not a legitimate cash buyer. Read more https://www.cashhomebuyers.io/texas/cash-house-buyers-midland-tx/
A legit cash buyer should always be willing to show you their bank statement, or provide you with a copy of the financial records they have for your reference. You should also be able to verify the information on their bank statement with their own mortgage lender.
If you suspect that a buyer is not a legitimate cash buyer, check out their company’s Better Business Bureau profile or search the name + “scam” to find reviews about their business. You can also try to contact past customers and ask them about their experience with the company.
The potential buyer has a shady background or seems too eager to share their financial details. This is a common tactic used by scammers who will share a variety of bogus records in an attempt to get you to sign on the dotted line for a cash sale.
Scammers who claim to be government entities or have relief programs for homeowners are another red flag. These claims are usually made in an effort to gain your trust and then charge you for things like foreclosure relief.
A potential buyer who requests a down payment is usually a red flag because they are requesting an amount that is too much for the home. This is typically a sign that the buyer is not a real cash buyer and you should cut your communication with them as soon as possible. Also read https://www.cash-buyers.net/texas/cash-buyers-for-houses-midland-tx/
Finally, if the potential buyer asks to change your mortgage payment wiring instructions, this is a common scam that you should be wary of. This is because a scammer will impersonate someone at your mortgage company and then request that you change the wire transfer instructions. This is a scam because it allows them to steal your money.
In short, there are many legitimate companies that can buy your house for cash. It’s just a matter of finding the right one and doing your research. You can also ask other homeowners about their experiences with the company before signing up for a sale.