An investor contacted us and made a cash offer to purchase our condominium. The condominium was immaculately maintained, cost-effective rent was collected, and it was situated in a highly desirable locality that consistently drew steady tenants. Five minutes passed between my spouse and I deliberating on whether or not to accept the offer.
A cash proposition was made. We approximated that it was $10,000 less than what we could have earned via a conventional sale. Upon considering realtor commissions, taxes, and the duration of the condo sale process, we concluded that the convenience offered by an as-is cash sale was sufficient. By the conclusion of August, an additional $35,000 was deposited into our bank account.
Cashing out of a property sale can be an absolute delight. When this occurs, investors seek a transaction that can be completed rapidly. In general, they exhibit a lack of concern regarding repairs. Since no real estate agents are engaged in the transaction, the broker’s commission is not applicable. The inspection walkthrough was a mere formality in my circumstance. Additionally, the as-is cash closing was effortless. (Also see: How to Sell Your Home When Your Mortgage Is Underwater)
The investors who initiated communication with our organisation were the property managers of the building. Their ownership of additional rental units in the building allowed us to swiftly ascertain their legitimacy. All that glitters, however, is not gold. Scammers abound in this industry; exercise caution when doing business with individuals who promote their service to purchase properties for cash via traditional media, the Internet, or even street corners (you’ve all seen those signs affixed to light posts).
If you are contemplating selling your property to an investor for cash, do your research and walk away if you notice any of the following red flags.
A foreign investor is involved
Those from foreign countries who contact you with an offer to purchase your home without viewing it should raise red flags. Scammers may occasionally download documents that appear to be from reputable sources or direct you to websites that have a professional appearance. They may claim that they are relocating to a foreign country for employment purposes. Nevertheless, these individuals are either unreachable by phone or lack a local representative with whom to collaborate directly. Scammers may occasionally issue a foreign cheque that contains an erroneous overpayment. They request that householders refund the overpayment without their knowledge, only to discover that the cheque does not clear. As a consequence, the proprietor will be held accountable for any funds that were transferred out.
Exercise caution when conducting business with international consumers who cannot be reached via telephone or video conference. And before proceeding with any activity involving deposited funds, ensure that the necessary time has passed for a cheque to clear. (Also see: Strategies for Safeguarding Senior Family Members Against Financial Scams)
They exclusively correspond via email
One may be contacted by investors via an assortment of channels. However, after an agreement has been reached, an individual should be interested in conducting a personal inspection of the property. A possible fraudster could be in contact with you if a prospective investor requests to correspond exclusively via email. Prospective purchasers are not hindered from visiting and inspecting a property with the intention of making a purchase.
Investors refrain from negotiation
As-is cash purchasers of real estate are actively seeking bargains. They have no intention of purchasing any property at the going market price. In order to resell the residence for a profit, the investors will negotiate a price reduction to accommodate such expenses. In order to sell their property to an as-is cash buyer, homeowners must be prepared to take a substantial reduction in the asking price.
Run away from a prospective buyer who says your property needs nothing but improvement and is willing to pay top dollar for it. A person who offers you the complete price of a house without expecting you to perform any work is probably attempting to defraud you.
Precautions against scams
Numerous legitimate buyers or investors are prepared to purchase your home in its current condition for cash. This type of transaction is advantageous for individuals who lack the financial means to complete necessary restorations or renovations. You may also appreciate the notion of a quick and uncomplicated closing. You may wish to terminate the arrangement because you inherited a home from a family member or because you inadvertently became a landlord after relocating.
Though there are numerous valid justifications for engaging the services of a quick-buy investor, householders can still exercise sound judgement when pursuing this particular transaction. Here is the proper way to do it.
Google “investor.”
Constantly conduct an online Google search and seek for independent reviews. Individuals who are displeased after being duped of their funds often create a digital footprint of their discontent. Conduct a preliminary inquiry using the name of the company or investor. Additionally, you should determine whether or not they are Better Business Bureau members and whether or not the State Attorney’s office has received any complaints.
Employ a counsel
While not mandatory, the assistance of an attorney can aid in guaranteeing the proper and lawful execution of the procedure. Credible investors will be favourable to this procedure.
Confirm references
Inquire further with their references. Legitimate investors will have interacted with householders and are able to impart their experiences, whether positive or negative.
Consider the manner in which they comport themselves
Observe their level of professionalism. You should avoid them if their correspondence is riddled with typos or if their advertising methods are dubious (illegal posters affixed to light posts, for instance). Find an investor who presents professionally if you wish to sell your property as-is for cash and an investor fails to do so.
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