Can You Trust Cash Home Buyers?
Selling your home can be challenging, especially if you have to do it fast or under stressful circumstances, such as divorce, abrupt relocation, financial hardship, and other tough scenarios. Situations like these can make selling your home to a cash buyer quite appealing — but is it smart? In today’s blog post, we’re discussing everything you need to know about selling your home or property to a cash-for-homes business.
At Wistar Real Estate in Lincoln and Omaha, we make selling any property — residential, commercial, or industrial — easier than ever. Our team of real estate professionals uses the latest technology to connect buyers and sellers for seamless real estate transactions. If you need to sell your home fast for any reason, contact us today to learn more about our services.
What Is a Cash Home Buyer?
The term “cash home buyer” could technically apply to anyone who completes a real estate transaction by paying cash in full, regardless of if they are a traditional home buyer, a professional individual, or an entire company. For the purposes of this blog post, we’re defining “cash home buyer” as a real estate investor who purchases homes and other properties for the purpose of making a profit, either by selling the properties or retaining ownership and renting or leasing them out. You can learn more about what a real estate investor is in our previous blog post on the topic.
What Are the Risks of Selling to a Cash Home Buyer?
Many people worry that the practice of selling a home or property to a non-traditional buyer (e.g. a real estate investor) isn’t safe or legitimate. Unfortunately, this can be the case, but you can avoid becoming involved with an illegitimate party posing as a cash home buyer or real estate investor by keeping an eye out for these red flags:
- Lack of a website or having a low-quality website
- Physical flyers or advertisements without explicit branding
- Unsolicited or aggressive communication
- Eagerness to part with their money or request payment
- Ghosting or lack of in-person meetings or phone calls
The Buyer Doesn’t Have a High-Quality Website
If you received a door flyer or piece of mail from someone expressing interest in buying your home, check for a website URL. If there isn’t one, that is your cue to be suspicious. While the lack of a website doesn’t necessarily mean the individual is a scammer, it can mean that they are inexperienced and may not be your best option. If they do have a website but it seems outdated, hastily assembled, or lacks contact information, consider other options for selling your home for cash.
Advertisements Lack Branding or Company Info
If you receive a flyer or see a sign advertising “cash for homes” that only lists a phone number or a first name, it’s probably best to pass on their services. A legitimate cash-for-homes company or real estate investor who is transparent and trustworthy will want to advertise their business openly, not through vague signs that hide their identity or business name.
Unsolicited, Pushy, or Aggressive Communication
If you’re receiving texts or emails with offers on your property from an individual or business you didn’t consent to communicate with, avoid responding and block them or assign them to your spam folder. While this practice is not necessarily illegal, it displays a disregard for professional communication.
If you respond to one of these messages or reach out to a cash home buyer through other platforms, pay attention to how they write their messages or speak on the phone. If they make you feel uncomfortable through aggressive, pushy, or guilting tactics, inform them that you no longer wish to communicate with them and that this will be your last message.
Overly Eager to Send You Money or Asking for Personal Financial Information
While it may seem like a good thing for someone to be interested in buying your home, it’s important to know that real estate investors operate differently than a traditional home buyer. Consider a newly married couple buying their first home — if they really love your home, they may be willing to spend more than it is actually worth to ensure their offer beats the others. A real estate investor, on the other hand, will buy your home for a fair but lower price in order to turn a profit, and their offer will rarely be backed by an emotional attachment to the property.
A scammer posing as a home buyer, however, will paint a pretty financial picture of how much money they’re oh-so ready to transfer right into your bank account. They may even request your bank account information right away, insisting that they’re ready to pay as soon as possible. Avoid giving out this sensitive information, and reconsider why this person is so open to handing over their money.
Ghosting, Avoidant Behavior, or Refusal to Meet in Person
A common piece of dating advice applies to real estate investors, too: if they like you, they’ll call you. If you’ve started working with a person claiming to be a cash home buyer or real estate investor, but they aren’t communicating with you, that’s a major red flag. This can take the form of refusing in-person meetings and phone calls, insisting only on text-based communication, or excessive excuses. They may even engage in “ghosting,” the practice of abruptly cutting off all communication for no apparent reason. They may resurface later, but by then you’ve hopefully blocked their communications.
Choose a Cash Home Buyer You Can Trust
Selling your home for cash doesn’t have to be a risky move. With Wistar Real Estate, our licensed and insured real estate professionals use the latest technology to connect you with verified real estate investors who are interested in buying all types of properties. Whether you’re selling a home, office space, or industrial building, you can do so quickly and easily with our services in Lincoln and Omaha. Contact us today to get started!