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Is an Email Offer from a Cash Buyer a Scam?

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Is an Email Offer from a Cash Buyer a Scam?

Have you gotten an offer from a so-called investor or cash buyer via email when they haven’t seen the inside of your home? Are you confused about what to do or how to protect yourself? In this article I will pull back the curtains so you can learn how to protect yourself from being scammed by a so-called cash buyer or investor.

First of all, who can really buy your home without first seeing it and inspecting it? The answer is no one. They never intend to buy your home. They intend to control your house by getting it under contract and then assigning that contract to a legitimate cash buyer like Express Homebuyers, that has the cash to actually close on it. Once the contract is signed, they will market the contract (aka your house) to a list of cash buyers they have. These cash buyers will almost always want to see the inside of your home and do a proper inspection. If the investors don’t like your home or if the investor you signed a contract with can’t find a legitimate cash buyer they just back out of the contract and leave you hanging. We unfortunately get these type calls from sellers’ way to frequently.

The practice outlined above is known as assignment of contract or wholesaling a house. Do you want to know how to avoid being taken advantage of? Read the following article How to Avoid Getting Scammed when Selling to a Real Estate Investor (link to this once posted). Last month we spoke with a seller who had received 2 higher offers from out of area investors who emailed them an offer without ever seeing the house. I told them to do the things outlined in the How to Avoid Getting Scammed when Selling to a Real Estate Investor article. The seller called and demanded the 3 contract provisions and he never heard back from them. Why? Because they never intended to buy his home. They intended to wholesale the home. If you have questions feel free to reach out to us.

Get Your Fair Cash Offer to Sell Your House, Fast!

or Call us at (877) 804-5252

Corporate Office

6564 Loisdale Court, Suite 315
Springfield, VA 22150
Phone: (877) 804-5252
Email: expresshomebuyers@expresshomebuyers.com

Express Homebuyers is rated 4.6 stars on Google based on 39 reviews

How to Avoid Getting Scammed when Selling to a Real Estate Investor

by bobby parker on 12:11 pm

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Over 4,000+ Homes Purchased Since 2003

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How to Avoid Getting Scammed when Selling to a Real Estate Investor

Would you buy a house without seeing it in person?

Would you buy a car without driving it?
Would you even buy a new phone without turning it on to make sure it works?

Well, how can a so called “real estate investor” pretend to buy your house if they’ve never seen it?

Imagine this: you need to sell your house fast for one reason or another. While driving around, you see a We Buy Houses sign on a telephone pole and decide to give it a call. Or maybe you simply google “We Buy Houses” and fill out some forms.

All of a sudden you get an email from a so-called investor who has never seen your home and it reads something like this:

Dear Sir or Madame:
We’d like to offer you way more than we plan to pay for your house because this large amount of $$
will get you to sign a contract with us and then we can change our offer right before closing so that
you have already boxed up your belongings, moved to another place, and you have no options left but to accept our lower offer.”
Sincerely,
Person that went to a seminar at the local hotel conference room over the weekend and now pretends to be a real estate investor

Unfortunately, not all scam artists are that straightforward, and many can disguise their true intentions with better writing.

So, if you get an email, even if it looks official, ask yourself: how can someone make you a serious offer without ever having seen your home? Do the following to protect yourself:

Tell them to send you a copy of their bank statement showing they have the money to buy your house. Make sure the name on the bank statement is the same as name of the person or business entity that is on the offer or contract to purchase your house. Then call the bank to verify (it’s too easy to photoshop things these days).

Find their business on the Better Business Bureau website at https" target="_blank" rel="noreferrer noopener">https. Look at their rating from the BBB and for how long they’ve been rated. If you can’t find their business, that should be reason enough to be suspicious.

But even if they can satisfy you that they have the money and that they are a legitimate business recognized by the BBB, they can still create chaos in your life based on the terms of their contract. Fortunately, there are other ways you can make sure they are making you a fair and serious offer. Here’s how you protect yourself:

Demand a deposit of at least a 10% of their offer price. Make sure that this deposit is non-refundable if they can’t close for any reason. For instance, if they offer you $300,000 for your house, make put down a $30,000 deposit that you keep if they don’t close on the property. Make sure this is written into the contract.

Check whether they have a “study period” or “inspection period” clause. If you see anything similar to this, require that they strike out this provision(s). This is the single most common method unscrupulous people use to hurt you. If they need to inspect your house, why won’t they come see it? Even if your home uses well water and a septic system, they should come see it before making an offer.

Check if the buyer’s name or company’s name includes “and/or assigns” next to it, or if the contract mention that they have the right to assign the contract. If you see something like this, it means that the investor can assign the rights to buy your house to anyone they want—a process called assignment of contract or wholesaling real estate. Inherently, there is nothing wrong with wholesaling if you are dealing with an accredited business that has the funds to close. But if they don’t have the money in the bank, this will become a huge issue when it is time for closing. If they don’t have the money to buy your house, and they can’t find someone else to assign the contract, then you’re stuck and there’s nothing you can do. Sadly, this happens way more often than it should. Imagine this: you’ve already put a deposit on another place to live. Your moving company has packed up your entire house and is loading the truck. You’re looking forward to dinner at your favorite spot and you get a call from the title company: “we’re sorry, but the buyer for your house was unable to fund the account and they were unable to assign the contract, so we cannot proceed to closing.” What are you going to do then? To avoid this nightmare scenario, tell the buyer to strike out all assign and assignability terms from the contract. If they are making you a serious offer, they’ll do it without pushback.

If you follow our advice above, you will be well protected from any https" target="_blank">We Buy Houses Scams. If you have any questions we’re always here to help. And heaven forbid you find yourself with the title company calling you to say the buyer flew the coop—call us immediately. We were here before the scammers showed up, and we’ll be here long after they’re gone.

Get Your Fair Cash Offer to Sell Your House, Fast!

or Call us at (877) 804-5252

Corporate Office

6564 Loisdale Court, Suite 315
Springfield, VA 22150
Phone: (877) 804-5252
Email: expresshomebuyers@expresshomebuyers.com

How do Companies that Buy Houses Work, and Are They Legitimate?

by bobby parker on 3:48 pm

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How do Companies that Buy Houses Work, and Are They Legitimate?

https" class="ek-link">If you need to sell your house fast, you’ve probably noticed ads for the companies that buy houses in any condition. Whether they’re ugly houses, damaged houses, hoarder houses, foreclosure houses, or something else. Lots of sellers just like you have tons of questions. And that’s where this blog post comes in to help.

*You wouldn’t get surgery from a doctor advertising like this, why would you trust someone like this to buy your house?*

FAQs About House Buying Companies

Below you will find answers for common questions people ask us so that you can learn how house buying companies work and how to determine if selling your home to one of them is a good choice for your specific situation.

Are “We Buy Houses” companies legit / will I get ripped off?
How do house buying companies make money?
How does the process work with these companies?

Companies that buy houses in any condition are real estate investors, flippers and wholesalers. They look for properties that need expensive repairs, are in foreclosure, or have severe damage that make them unlivable.

These companies usually look for properties in areas where newly built or completely remodeled properties sell at a much higher amount than old and run-down properties. Because the costs to rebuild or restore an old house can be quite high, the owners of the house often lack the money to make the needed repairs.

On the other hand, companies that buy ugly houses often have business financing that allows them to purchase these houses and repair them. Because these companies do this for many properties, putting a significant amount of money into renovating a home isn’t as risky for them as it is for an individual homeowner.

Because the we buy houses companies do not plan on living in a house after they buy it, and because they often have their own teams that can do the renovations, these companies can normally turn a profit no matter what the original condition was when they bought the house. This is why it might be a good idea to contact one of these companies if the costs of repairs for your house are so high that you can’t afford to fix it.

Now that you know why these companies might want an ugly house, here are some questions and answers you can ask to help you determine which one to sell too, if it is right to sell to them, and whether or not they are legit.

Are House Buying Companies Legit?

Yes. The majority of companies that buy houses are real estate investors that purchase distressed, infested, burned down, flooded and even murder houses. These buyers take over the debts from the bank and they renovate or rebuild the property hoping to turn a profit from the rehabilitation. But you have to be careful because even though most are legitimate businesses, they’re not all created equal.

Some will be genuine and want to help you out of a bad situation—like recovering some money from the sale of your home, instead of having a bank foreclose where you lose everything. But https">others will pressure you to think their offer is the only one you’ll get, sort of like the stereotypical used car sales person. Below, we’ll give you the key to identifying these pushy people.

How to Know If You’re Talking to a Scammer

Reputation is Everything. To find out if a home buyer is a scam, rely on their reputation. Reputation is everything and you should never feel like the house buyer is hiding something from you. Ask anyone that promises to buy your house these questions, and make sure they give you the right answers. That way you can have peace of mind that you’re dealing with a professional buyer.

QUESTION 1
Are you accredited by the Better Business Bureau and what is your rating?

CORRECT ANSWER:

We are accredited by the Better Business Bureau and we have an A+ rating. But don’t take their word for it. Check for yourself at https" class="ek-link">BBB.org.

Be careful though. Scammers out there often impersonate reputable companies. Make sure the business address and phone number matches the real company. Also make sure you see the BBB Accredited Business Badge. Notice how our BBB listing shows the same address and phone number that’s on our website? You can also see the BBB Accredited Business Badge right in line with our name.

Along the same lines, any reputable company should willingly give you the link to their business page on the BBB website. https" class="ek-link">Here is the link to our business profile.

QUESTION 2
How do I know you have the money to purchase my house and won’t leave me stranded when it’s time to close?

CORRECT ANSWER:

If you look right here, you can see the balance in our bank account. That’s more than enough for us to purchase your house.

Remember, just because someone signs a contract with you doesn’t mean they have enough money to buy your property. Many scammers out there will get you to sign a contract and then run all over town trying to find the money. When they can’t, they’ll often back out of the contract and leave you in a lurch after you’ve already planned your move and paid for movers.

QUESTION 3
What fees do you charge me during this process?

CORRECT ANSWER:

NONE. Legit house buying companies should cover all commissions, closing costs, and other associated costs with the sale of a property. Remember that these companies make money by improving the real value of the property, mostly by renovating it. If they are asking you to pay a fee, you will want to consult with other companies in town. Or give us a call. Even if we don’t buy houses in your neighborhood, we likely know someone trustworthy that does.

How Do Companies that Buy Houses Make Money?

Most “We Buy Houses” companies make money either by renovating a property so they can sell, or “flip” it at a higher price, or by renting out the property and waiting for prices in the area to increase. A few examples of these situations include:

Buying houses in up-and-coming neighborhoods. Investors will look for foreclosures and houses which are about to be sold at an auction. This way, they can buy property at a good price and wait for neighborhood prices to increase. Then they can either sell the land or build a new home and increase their profits.
Another way these companies make money is by buying, renovating, rehabbing, or completely rebuilding the house, and then selling it for a profit. This is often in neighborhoods that are still desirable locations, but are filled with many older or damaged homes.
The third most common way house buying companies make money is by buying the building or land, renovating it, and renting it for a higher price than their monthly mortgage and expenses.

How Does the Process Work?

Step One is a meeting with the investor at your property. They will tour the property, take a bunch of pictures, identify any major issues, and come up with a solid estimate for what their renovation costs will be.
Step Two is where the investor will research comparable properties in your neighborhood to come up with a potential value for they can sell the property for after the renovations are complete. You might here the terms “comps” or “ARV,” which stands for “”After Renovated Value.”
Step Three is where the investor will make an offer on your property (if they are interested in purchasing it). There are many ways a legit investor can structure an offer, and they should always present you with two or three options based on your situation. That way, you are free to choose what works best for you.
Step Four is the title and escrow process. This can take anywhere from a few days to possibly a couple weeks if there are multiple liens or mortgages associated with the property.
Step Five is closing day. You can often do the closing online or at your own house with a notary public, but you might also meet at the office of the title and escrow company. You’ll review and sign the paperwork and if you are due any money from the sale it will get transferred to your bank.

What Kinds of Houses Will the Home Buying Companies Purchase?

House buyers will purchase all kinds of homes:

https" class="ek-link">Damaged in disasters like floods, fires and tornadoes
https" class="ek-link">Houses with foundation problems, damaged roofs, and other major issues
Properties that have infestations including termites, bedbugs, mice, roaches and more
Horror houses where murders and violent crimes took place
Hoarder Houses
https" class="ek-link">Disaster homes where tenants tore the house to pieces and took off in the middle of the night

By using the information above, you’ll be prepared to work with “we buy houses” companies. You’ll know how they work and you’ll be able to figure out whether they are a legit company you can trust… or just another scam.

Get Your Fair Cash Offer to Sell Your House, Fast!

or Call us at (877) 804-5252

Corporate Office

6564 Loisdale Court, Suite 315
Springfield, VA 22150
Phone: (877) 804-5252
Email: expresshomebuyers@expresshomebuyers.com

Why Are You Selling?

by bobby parker on 4:36 pm

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Over 4,000+ Homes Purchased Since 2003

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Why Are You Selling?

Get Your Fair Cash Offer to Sell Your House, Fast!

or Call us at (877) 804-5252

Corporate Office

6564 Loisdale Court, Suite 315
Springfield, VA 22150
Phone: (877) 804-5252
Email: expresshomebuyers@expresshomebuyers.com

You Don’t Need Good Credit to Sell Your House

by bobby parker on 2:09 pm

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Over 4,000+ Homes Purchased Since 2003

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You Don’t Need Good Credit to Sell Your House

Thinking about selling your house because you heard it is a sellers’ market? Maybe you’re going into foreclosure and are tired of the headaches and hassles that come with that lengthy and stressful process. The good news is your credit score does not matter when it comes to selling your house.

You can sell your house with bad credit without any added restrictions, but that doesn’t mean you should. It’s important to consider why you are selling, what your situation is after you’ve sold, and to evaluate the benefits and costs of selling your home.

The biggest issue you will run into if you have bad credit and want to sell your home is getting a mortgage to buy a new house. Lenders are more cautious when giving a loan to someone with bad credit. The same goes for getting approved to move into an apartment of your choice. There are also a lot of good reasons to sell your house when you have a low credit score.

Reasons to sell your house when you have bad credit.

The best reason to sell your house if you have bad credit and you’re worried about losing your home is because you can recover some of the money. These recovered funds can be used to help you get back on your feet, pay off bills and work to increase your credit score so you can buy another home in the future. You also have multiple options to choose from.

The first is to find a company that buys houses for cash. They can close quickly; you’ll get an offer fast and be able to move on with your life. This is the quickest option, but you may not always get the most money from house buyers or real estate investors. If you do sell to one of these companies, the biggest bonus is that you’ll avoid going into foreclosure. But what happens if the offers are too low and your bank is placing your home in foreclosure? Do you have any other options? Yes!

If the bank or lender that owns your mortgage is about to foreclose on your home, and you don’t want to sell to a real estate investor, a short sale may be a better option. From the time the bank or mortgage lender starts the process of foreclosing on your home, and until the auction happens, you have a small grace period to list your house on the market. This is called the pre-foreclosure period and it can last up to a few months. This gives you the opportunity to close in a short sale.

A short sale is when you sell your home for less than the mortgage is worth. There are numerous reasons the company who owns your mortgage will allow this, but they do have to approve it so you are taking a gamble. If you’re considering a short sale, check to see if selling your home for enough to cover the mortgage will be difficult in the current market, or even at auction. If it is, they may be more inclined to allow this. If they do, it can be a saving grace.

You won’t have to go through the stressful and tedious foreclosure process. You’ll avoid having to watch as your house gets auctioned off to the highest bidder, and you’ll walk away with money in your pocket. Also, short sales do not always use a real estate agent. This saves you money by not paying a commission. The fees associated with short sales normally become the responsibility of the mortgage lender making a short sale a great option, but only if your lender will approve it. But that isn’t the main reason you may want to choose this option.

The most valuable benefit to a short sale is that being foreclosed on is worse for your credit score than a short sale. By not having a foreclosure on your credit report, it may make buying another home in the future easier, especially if home ownership is in your long-term goals.

You can sell your house when you have bad credit without any additional obstacles, but that doesn’t mean you’ll be able to buy a new one as easily. If you do choose to sell, talk to a financial advisor, your lender and also carefully evaluate all options. If the stress is too much and you just want out, contact us for a cash offer and we’ll help to close the deal quickly and painlessly so that you can move on with your life and begin rebuilding your credit without the house and the bank holding you back.

Get Your Fair Cash Offer to Sell Your House, Fast!

or Call us at (877) 804-5252

Corporate Office

6564 Loisdale Court, Suite 315
Springfield, VA 22150
Phone: (877) 804-5252
Email: expresshomebuyers@expresshomebuyers.com

Salesforce Web2Lead Form

by bobby parker on 4:16 pm

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Over 4,000+ Homes Purchased Since 2003

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Salesforce Web2Lead Form

Get Your Fair Cash Offer to Sell Your House, Fast!

or Call us at (877) 804-5252

Corporate Office

6564 Loisdale Court, Suite 315
Springfield, VA 22150
Phone: (877) 804-5252
Email: expresshomebuyers@expresshomebuyers.com