Every home seller once a cash offer, right? But before accepting that cash offer, there are three things to consider. Not all-cash offers are as amazing as they sound. There could be other factors involved such as the terms of the loan, timing, and who you are selling two. Before selling your home for cash to an investor do a little bit of homework and see if there are any red flags that might be coming up. Here are three issues to consider before accepting a cash offer.
#1. No negotiation.
If it is an as-is cash offer understand that there in the market to make a deal. They may not be willing to go any higher than what they’ve offered you. Investors will negotiate a price down as far as it could go to account for any repairs they may need to conduct once they own the home so that they can flip it for a profit. Most homeowners that are willing to accept an all-cash offer are usually accepting it for a lower amount. If you find yourself communicating with the buyer who requires no repairs and is willing to pay top dollar for your home, chances are it’s too good to be true.
#2. Very little communication.
Many investors may contact you through a real estate agent or email only and if you can actually talk to the person you may be dealing with the potential scammer. Legitimate buyers have no problem showing up, walking through a property, and talking to you face-to-face if they really intend to purchase a property.
#3. For an investor.
There are a lot of legitimate cash offer investors out there but there’s also a lot of scammers. People who may contact you from foreign countries offering to buy your property sight unseen should be a huge red flag. Scammers can submit documents that look legitimate or even give you websites that look and sound professional as well as a sob story or offer you a situation that sounds legitimate, but many of these scam artists will even send foreign checks with a mistaken overpayment asking unsuspecting homeowners to refund the overpayment only to find out that the check doesn’t clear. Be very wary of dealing with real estate buyers from foreign countries who are not available to talk on the phone, have a videoconference, or have a real estate agent doing the negotiating for them. Again, if it sounds too good to be true, it probably is.
There are a lot of cash investors out there that are very legitimate but the last thing you want is to sell your house only to realize you don’t have any money after the sale either. Using a real estate agent does cost a little bit more but you’re likely to get a higher price and you’re dealing with legitimate buyers through an agent. That really is one of the best ways to buy and sell a property.