How to Identify legitimate Cash Home Buyers
In the previous post I talked about the true nature of the real estate business and what to watch out for with many “We Buy Houses” companies you find on Google. In this post, I’m going to arm you with necessary information to help ensure you’re deal with a reputable cash home buyer and not a scammer or fly by night. Ok, let’s jump right in…
Web Site Check:
For starters its good practice to check the company’s/persons website and as you navigate through each page you should be asking yourself the following: Does it look like a cookie cutter template (ie/one in which looks almost identical to other web sites)? Is it a faceless site or do you see pictures of the people in the company? Is it clear who the owners of the company or web site are? If it’s not obvious who the owners are or where they are located, this should be an immediate red flag.
Next thing to check would be company reviews. Does the company have legitimate reviews on Google? Facebook? Yelp etc.? This is no different than when you check the reviews when purchasing something on Amazon. You want to see that this company has been in business more than a week. You also want to see that the company has good ratings from legitimate people who they’ve already done business with.
Years in Business:
While it might seem obvious, you definitely want to verify how long the company has been in business. Did the company just go live with their web site after a seminar they attended last week? Has the company been in business for 5 years? 10 years? more? Is this information congruent with their web site and advertisements? A company that has been in business for 10 years should have the work experience and testimonials which reflect 10 years of being in business.
Earnest Money Deposit (EMD):
If they past the above tests, you’ve agreed on price, and you’re moving forward with a contract; here’s a few other things to be mindful of. How much earnest money do they put up? Earnest money of $10 or $100 should be an immediate red flag. Most often these buyers are putting up minimal deposit money because they have little to no experience or they actually have little or no money. (Yes, unfortunately we have the “gurus” to thank for this since they are selling real estate products that make you rich with “no money and no credit”)
Proof of Funds (POF)
Can they show you proof of funds (POF)? You want to make sure you see an actual bank statement with the funds present. This shows they have the money ready to go and don’t need to find it elsewhere. This will prevent you from wasting time with tire kickers and being tied up in a contract in which the buyer does not have the ability to purchase your home. In my opinion, a generic proof of funds letter is garbage. These can be obtained for free from various websites. To verify this yourself, just google “Proof of funds letter” and you will see many web sites who will let you download a POF letter directly from their web site.
Using the information provided above along with some common sense should help you avoid many scammers or inexperienced home buyers out there. If you want an experienced and reputable cash home buyer that can help you with your unique situation, go with a company like Real Estate Solution Providers. We buy houses quickly and for a fair price. Save time and avoid the worries of dealing with a fly by night companies trying to take advantage of you.