Essential Tips to Avoid We Buy Houses Scams

Regardless of the city you live in, you’ve certainly seen billboards mentioning three words: ‘we buy houses.’ Sometimes they appear with an additional word, such as ‘we buy distressed houses’ or ‘we buy old houses.’

The advertisers can be anyone. They can be legitimate investors, wholesalers, flippers, or a team of people looking to take advantage of homeowners who’re going through a stressful time.

Usually, if you’ve got an unwanted or distressed house that you want to sell quickly without dealing with the expense and trouble of selling it on the traditional market, joining hands with these people can be a wise decision.

A legitimate ‘we buy houses’ company can quickly buy your house and save you significantly on agent commissions, closing costs, and fees. But there’re people who use these kinds of advertisements to scam homeowners out of their houses.

Here’re some tips that you must consider when selling your home to a ‘we buy houses’ company in order to protect yourself.

Research the Company

The first thing you need to make sure is the company is a legitimate one. Be sure to locate its office(s) and check whether or not it has the proper licenses required to run the business. You also need to check its website, any other kind of online presence, business history, testimonials, and Google reviews.

Most probably, your home is your largest investment, and you must not solely rely on advertisements when selling it. So, try to find out as much background information as you can before proceeding ahead with a ‘we buy houses’ company.

See If There’s Bait And Switch

Once a dishonest ‘we buy houses’ company receives your contract, they usually start pulling shenanigans. For instance, they may have initially agreed on a price of $90,000, but at the last minute, they call and tell you that they can only pay $70,000.

If you’ve to move immediately or are facing foreclosure, you might be forced to accept the new price. But if you don’t have any such urgencies, you should strictly avoid these kinds of deals and start searching for a reputable ‘we buy houses’ company.

Watch Out for the Timeframe of the Transaction

Generally, a good ‘we buy houses’ company should be able to close on your house in around two weeks, which is also a reason you’re making the deal. However, if a company cannot guarantee some kind of a reasonable timeframe to close the deal, it won’t be a prudent decision to proceed ahead with it. You may end up having the contract for the unforeseeable future without any recourse.

Go Through the Contract Carefully

This is your house, and you’ve got all the rights to get clarifications and ask questions. No matter how lucrative the offer is, take time to carefully read the contract and understand each of the sections. If possible, have a real estate professional or attorney look at it.

A legitimate ‘we buy houses’ company should never have anything to hide in the contract. Therefore, don’t sign the contract unless you fully understand it.