Wondering how to not get scammed by a cash offer on your Houston house? Cash offers come with many benefits for sellers, including a faster, more convenient sale. However, it’s possible for some cash offers to be scams.
So, how can you tell the difference between scams and legitimate cash offers? In this post, our Houston realtors at Your Home Sold Guaranteed Realty - Chris Schmidt Team will share 11 tips to help you avoid cash offer scams.
Key Takeaways:
- Hire a realtor who’s experienced with cash sales. They’ll easily be able to tell the difference between a legitimate cash offer and a scam offer.
- For individual buyers, you can perform a background check to verify their identity and ensure they have no history of fraud, legal issues, or criminal history.
- Offers that come with excessive contingencies or strange requests are usually red flags that may represent a scam.
Get Multiple Cash Offers: Your Home Sold Guaranteed Realty - Chris Schmidt Team has the resources and network to help you get the best cash offers for your home. In many cases, you’ll be able to pick your own closing and move out date, too. Call 713-322-5604 today to get the best cash offer and sell your house fast for cash!
How Do I Not Get Scammed By a Cash Offer on My House? – 11 Tips
- Work with an Expert Realtor: Hire a realtor who’s experienced with cash sales. They’ll easily be able to tell the difference between a legitimate cash offer and a scam offer. A knowledgeable realtor will advocate on your behalf and make sure you get the best possible deal on your home.
- Ask For Proof of Funds: Verifying the buyer’s proof of funds is an essential step in evaluating a cash offer. Ask the buyer to provide bank statements, letters from their financial institutions, or certified checks. These documents demonstrate that they have the money they say they have to buy the property.
- Check the Buyer’s Credibility: For individual buyers, you can perform a background check to verify their identity and ensure they have no history of fraud, legal issues, or criminal history. For companies and iBuyers, you can read online reviews, check professional credentials, and consider getting references from previous transactions.
- Look Out for High-Pressure Tactics: High-pressure tactics, such as imposing time limits on the offer, are often indicative of a scam. The buyer may also discredit alternative offers and attempt to rush you into the transaction, hoping to prevent you from conducting proper due diligence.
- Look Out for Overpayment Scams: One prevalent scam involving cash buyers is overpayment scams, where scammers propose to buy the property at a price exceeding the agreed-upon amount. After making the payment, they ask for a refund of the extra amount or ask it to be sent to a third-party account. By that point, the initial payment is discovered to be fraudulent, leaving you with no profit and out-of-pocket for the extra funds.
- Check Contingencies: Offers that come with excessive contingencies or strange requests are usually red flags that may represent a scam. They can also be a sign of stalling tactics in the event the buyer is rethinking the deal.
- Use Secure Payment Methods: The best way to accept cash offers is through secure channels like a wire transfer or cashier’s checks from reputable financial institutions. Other options can come with the risk of forgery, counterfeit money, or other types of fraud. Remember to never wire funds or provide personal financial information until you have verified the legitimacy of the transaction and the recipient’s identity.
- Work with an Attorney: Aside from your realtor, it can also be a good idea to hire a real estate attorney to verify the legitimacy of contracts, agreements, and any legal documents involved in the transaction.
- Require Earnest Money: Require the seller to make an earnest money deposit between three to five percent of the purchase price to show their serious intentions. These types of deposits are usually held in an escrow account by a third party, like a title company, escrow company, or real estate attorney.
- Use a Licensed Title or Escrow Company: Hire a reputable and licensed title or escrow company to facilitate the closing process, manage legal documents, and handle the transfer of the cash funds.
- Trust Your Instincts: Ultimately, you’ll need to trust your instincts. If an offer seems too good to be true or the buyer doesn’t seem like the right fit, don’t be afraid to walk away from the deal.
Sell Your Home For Cash with the Best Realtor in Houston
By following these precautions and working with an experienced professional, you can safely navigate the cash offer process and reduce the risk of falling victim to scams. At Your Home Sold Guaranteed Realty - Chris Schmidt Team, Chris Schmidt and our expert realtors have years of experience in the real estate industry.
Our team can help you evaluate any offers you get on your home. We can also help you connect with legitimate cash buyers and get your home sold fast for cash. On top of that, our unique buyer and seller guarantees as well as our legendary customer service have given us a reputation as the best realtor in Houston.
To learn more about our Guaranteed Sale Program or Buy it Back Guarantee, give us a call at 713-322-5604. You can also fill out the form on this page or send a message to [javascript protected email address].
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