Let’s face it, selling a house is a complicated process, no matter how good the real estate market is. Consecutively, more and more homeowners are selling their houses to professional home buyers. Furthermore, selling your house to a professional home buyer not only saves you time, but is also cost-effective, as you won’t have to pay to a real estate agent or spend a bundle on home staging. Whether you want to sell your home quickly and be done with it or you are in a situation where you absolutely have to sell quickly, selling your property to a professional home buying company can be a great alternative. However, while you can find a plethora of professional home buyers who will buy your house as-is, choosing the right one is not as easy as it sounds.
Besides, it’s not uncommon for sellers to get taken in by the lure of seemingly profitable professional home buyer scams. Read on to find out four red flags to watch out for when selling your house to a professional home buyer.
1. Internet presence- In the modern world, legitimate professional home buyers have a website and social media pages. Furthermore, if a professional home buyer doesn’t have a web portal or social media account, there’s a good chance that they have something to hide.
2. References- Reputable and experienced professional home buyers will be able to provide contact information of people they’ve purchased from in the past. Furthermore, if they have no references or refuse to share them, you are probably dealing with a scam artist. Before you sell your home to a professional home buyer, ask for a list of properties the buyer has purchased in the past.
3. Price for the house- Beware of sales prices that seem too good to be true- this is especially to be wary of if the professional home buyer is not willing to put down a significant amount of earnest money or requests a long option period even with standard earnest money.
4. Location of the home buying company- Some professional home buyers will set up shop in a new place in hopes of making large amounts of money. They know nothing about the communities they serve or the housing marketing conditions within that community. Furthermore, that means people in the community will get lower cash offers and poor service. Furthermore, a local professional home buying company will know the past and present conditions of the local real estate market and they will have a wealth of knowledge on neighborhoods throughout the area. Consecutively, they will be able to make better cash offers and offer better services.
While these were some of the red flags to watch out for when selling your house to a professional home buyer, there are many others, such as too many negative online reviews, the buyer seems overly eager to share financial details among many others.