Ever heard of companies that claim to buy houses? You may have seen “We buy houses” ads on telephone poles or late night TV, or noticed sloppy flyers pinned to grocery store bulletin boards. The ads got your attention, but may have left you wondering, "are house buying companies like this legit?" There are many legitimate companies that buy houses, but there are also many questions you need to ask before you sell a home to one of these companies.
With the recent foreclosure crisis, which left many homeowners at risk of losing their homes, the number of mortgage scammers has increased exponentially. You are right to be wary of anything that sounds too good to be true. If you are under serious financial pressure, including potential foreclosure, you need to act quickly but wisely. Just because you need to sell your house fast, do not take a short cut that will cost you time, money, or your house itself.
Not All House Buying Companies Are The Same
Do your research. There are many house buying companies claiming to offer a quick resolution to your problems. Not all are trustworthy and financially able to buy your home. Not all have experience in your area. You need to make sure they will pay off your mortgage as well as take the title to your house.
Know what you are getting into. In some cases, there may be alternative ways of selling that may yield you more money, but take more time. Legitimate companies are up front with you about why they can offer the price they offer. They will explain the process to you carefully.
Look for signs of reliability. A reputable company should have a website and a street address. They will be willing to share referrals with you. They can offer proof they are stable and able to buy your houses. They will schedule settlement to take place at either their office or the settlement company's office. Check the Better Business Bureau reports on any company with which you consider working.
Follow your gut. If the company's claims do not add up, keep looking. If you feel pressured to sign over your house, take a deep breath and make sure you understand what you are signing. A reliable company will not pressure you to act before you are ready, even though time is of the essence.
Make sure they have the funds available to purchase your home. One of the most common mistakes sellers make is not verifying that the home buying company actually has the money to buy their house fast. These companies try to sell the house to a third party that has money, and collect a fee for doing it. The problem occurs when the company can’t find a legitimate buyer and they back out of the contract with the seller. Oftentimes the seller is then left in an even worse situation than when they started.
Selling your house to a company that buys houses is a trusted method to sell your house fast. There are many legitimate house buying companies who want to make the process a win/win for you and for them. Start with this checklist, do your research and ask plenty of questions.