If you want to sell your home quickly, then you will already have noticed the many options to sell your home to cash buyers. This can seem like the perfect opportunity to make money and have a quick sale, but it is not always this easy. Many cash buyers offering to take your home quickly for ready money are illegitimate: not only do they not have the right paperwork for their purchases, but they are also likely to unregulated, and may not even be a recognised company. Before you embark on any kind of cash sale of your house, you need to know these scams, and understand the risks involved in selling your home to a cash buyer.
The risks of selling to cash house buyers
If you are thinking of selling your property quickly, then you will have seen the companies out there who are willing to offer money. Many of these try to lure in customers with offers of quick sales, ‘guarantees’ of a sale, and no costs for valuations. They may also offer to buy your home for a reasonable sale price which seems like a dream come true. However, not everything is as it seems, and may people are being taken for a ride by these companies, and find that they end up with a house sale which is illegitimate, leaves them with the debts, or doesn’t achieve the price which the buyer originally promised.
What happens during a cash house buyer scam?
If you have not experienced the world of the cash buyer before, then you will not know what to expect. However, there are some things which you will be able to watch out for when dealing with a cash buy company, and which will warn you of potential trouble:
- The company agrees to buy the house for nearly 100% of its value, but there is no written agreement. This is usually a prelude to reducing the price dramatically, as in one instance where a house sale had been agreed for nearly £80,000, and two days before the sale was finalised, the company dropped the price to nearly £40,000.
- Property valuations are conducted by the company. If you find that the company are conducting valuations of your property, make sure that you talk to the valuation company, and get their credentials. A number of scam companies will send in fake valuation teams, and then say that there are problems with the home, dropping the price accordingly. Have your own valuation and survey if you are in any doubt.
- The company offers a no-promotion deal to the seller. This deal is a contract which prevents the customer from looking elsewhere for a sale. While this seems to protect the seller, ensuring a sale, in fact it can turn into something very different if the company drops the price of the sale, leaving you unable to find a better offer.
- The company doesn’t explain its fee structure. Most companies charge a fee for valuations and surveys. If you can’t find an explanation of fees, don’t trust the company.