It won’t be wrong to say that the real estate market is still far away from its glory days and buyers are still finding it hard to get a good price for their properties. There are a number of reasons a homeowner may want to sell the house.
They may want to sell their house due to an inheritance, debt issues, relocation, divorce, job changes and various other reasons.
In such situations, people often want to sell their house quickly to get cash in their hands but there have been several instances where unscrupulous predators have taken advantage of people in this situation by trying to scam them and making some money from someone else’s misfortune.
If you are also looking to sell your house fast, you should be aware of we buy houses scams and make sure that you are not becoming a victim of we buy houses scams.
In the article below, you’ll discover various ways used by these scammers to profit from unsuspecting home sellers.
Common Techniques Used by We Buy Houses Scams
One of the most common techniques used by these scammers is that they try to take advantage of the established brand of the established companies in the market by trying to use their great work.
In simple terms, they try to falsely represent a company when they do not have anything to do with that established company.
One of the ways to check the legitimacy of such companies is to go to the website of the parent organization and find out whether they are a franchisee of that established company or some scammers trying to take advantage of the name of the established company.
It is important for you to keep in mind that companies that offer to buy houses for cash never ask the sellers to make upfront payments for credit processing or application fees or any other such requests.
In other words, home sellers are never required to pay upfront money to the buyers for any purposes.
If you come across a company that wants you to pay money in the form of credit processing or any other such thing, it’s a given they are a scam and you should stay away from such companies.
It’s a big red flag and they will take your money and run.
Keep in mind that everyone involved in real estate business including lawyers as well as real estate agents take the commission at the end of the deal and nobody asks for any upfront payments.
Therefore, stay away from a company that asks you for upfront payments before the deal has closed.
One of the other common types of scams is equity skimming. This usually happens when they ask the seller to transfer the deed of the home to the buyer even before the deal has closed.
These buyers require the sellers to make the payments to them instead of the mortgage company and ask the sellers to vacate the home in order for them to rent out the house.
The buyers usually profit by getting rental payment each month and by using the equity in the home to take other kind of financing from other financial institutions. Also, sometimes they simply sell the house without clearing the outstanding mortgage.
In other words, it is extremely important for you to find out about the real reputation of the company you are dealing with before you decide to sign a deal with them.
There are several ways to protect yourself from such scams.
One of the best ways to save your home from such scams is to only deal with professionals who have well-established history in this industry. Keep in mind there are thousands of real estate gurus with zero experience in the real estate industry.
Therefore, it is important for you to deal only with well-established professionals who have good reputation in the market.
You should read the contract before signing to ensure you are getting a good deal. You may also hire the services of a lawyer or go to the mortgage company to ensure you are getting a good deal. You should never sign a contract that is not clear.
Overall, these are some of the ways you can save yourself from becoming a victim of these scams. Keep in mind you always have the choice to walk away if a deal sounds too good to be true.
So, walk away when the deal feels a bit fishy instead of falling prey to these scammers.