It’s no secret that investing in real estate is generally considered to be an excellent way to make money. Everyone needs somewhere to live, after all. That has prompted multiple people to start their own cash home buying companies. Unfortunately, not all companies are legitimate. So how can you tell the good companies from the bad actors?
References and Reviews Are Solid
One of the first things you should do when researching any business, including a cash home buying company, is to check out the reviews left by previous clients. It’s also a good idea to ask the company for references and to follow up on them. Check as many references and reviews as it takes to get a range of experiences. This can help you get a better understanding of what sort of experience you can expect to have when you work with the company yourself.
They Come to See the House
Any legitimate cash home buying company will want to make sure that the house they’re making an offer on is a good fit for the company’s strategy. That means coming to see the house themselves. This allows the company to get a feel for what condition the home is in and what sort of offer makes sense. Be wary of companies that claim they don’t need to see the house before making an offer or closing on the deal. Read the contract very carefully so you understand what risks or problems you may be liable for if you go ahead with such a company.
Payment Timing Makes Sense
Traditionally, funds involved in a real estate transaction are not exchanged prior to the sale closing. Legitimate companies should not be asking you as the seller to pay fees upfront. They’re also not likely to provide you with financial information without you prompting them for it. And they definitely won’t pay you before the sale closes with a check that is for more than the stated offer and ask for cash back. That’s a sure sign that you’re being scammed. The timing for the payment should make sense, and the value should be correct. Anything else should set off some warning bells in your mind.
There are bad actors in every industry out there, including the real estate industry. Avoid being burned by unscrupulous individuals and companies by making sure that the cash home buying company you’re selling your home to is legitimate. If you’re careful and do your homework before closing the deal on your house, you shouldn’t have anything to worry about.
It’s always good to learn about the companies you choose to work with. Click here to learn more about Joe Homebuyer of Eastern Pennsylvania today!