Cash home buyers and property buying companies have been in the public eyes for decades now. And new startups still show up each and every day without us knowing where and what companies do they represent.
Although the US Federation has enacted the Financial Services Authority (FSA) on July 1, 2009, firms and companies still flout the regulation and continuous to do an unscrupulous and illegal transactions with accommodating and innocent home sellers.
Ways to Check If You Are Dealing with a Real Estate Scammer
So in order to keep away from first-time home seller mistakes, move forward, and have your property sold to the right home buyer, here are 6 ways to guarantee you that your home buyer is legitimate and trustworthy.
1. Research and Vet About your Home Buyer
Observe and analyze the way your home buyer interacts and deals with the transaction. A serious buyer will keep his promises, even the simplest ones, like showing up or calling you back.
Ask the buyer a lot of questions, especially about his purchasing process, and observe if he is just glossing the conversation to deceive you. Be careful of those home buyers who claim they are experts, but in reality, lacks experience and are just wannabe’s.
2. Ask for the Business or Company’s Registration Number
Registered home buyers display their registration number on most of their company documentations. Validate their registration number at the Companies House to ensure that they are authentic and their information, such as company name and address, synchronize.
3. Create Specific Terms of Service
Make a formal and specific term of service or written code of practice to be signed by both parties. A home buyer that is reluctant to agree on these terms often plays a ploy and hides something.
Never continue an engagement to your home buyer if he doesn’t sign the agreement.
4. Verify the Proof of Funds
Not because he claims to buy your home does mean he has enough funds.
In reality, some creative home buyers closed the transaction without any cash at hand. They also have a secret transaction with another home buyer, who, in reality, will pay for the property.
A bank statement, showing his past 30 -60 days statement account, is what you need. This document helps you validate if his name on the bank statement and contract tie up.
5. Check if He’s an Active Cash Home Buyer
A legitimate home buyer actively purchases homes and properties and has his name written on several deeds of contract. Checking on the deeds of record is now easier as they are already accessible online.
With just his name or the company name he represents, you can research and instantly pull up his records. They should be listed as grantee on the actual deeds of record.
If you have time, you can also track the purchasing record of the home buyer from your local deed record office.
6. Write Down in Paper Your Verbal Commitments
Ultimately, record every verbal agreement you have together.
Verbal negotiations should be written down and must be spelled out in the contract. And once he presented his written offer, peruse over the document and ensure that all your agreements were clearly stated.
No one, except you, can only discover if you are making a deal with a legitimate investor or just a pretentious agent.
These tips can save you from scams and other problems brought by these inexperienced and illegitimate home buyers. Make sure to only deal with an honest, trustworthy, and professional home buyers. Beware of scammers!
The Home Buyers is a US registered real estate investors. We buy houses, whether its ugly, as-is, or derailed, in cash. We hold to the values of integrity and commitment and we guarantee satisfaction to all our customers.