Call 214-799-0129 for your Offer
How to Spot A Cash Home Buyer Scam
August 4, 2020 Mark MacFarlane

How to Spot A Cash Home Buyer Scam

Posted in Cash Buyers (for Homes)

You want to sell your home quickly and decide the best way is to sell to an investor who will pay cash and can close in 10 days.  Now all you need to do is find a legitimate cash buyer and avoid the home buyer scams – but how do spot a home buyer scam?

Many cash home buyers are legitimate investors that will buy the home for cash and close quickly. 

Buying homes for cash is a legitimate business that helps sellers by providing a means to sell a home quickly, easily, and for a fair price.  Most cash buyers do not care what condition the home is in and will not require the seller to make repairs or upgrades.  They will truly buy the home as-is for cash.

Unfortunately, there are a few shady and dishonest people that make the industry look bad.

This article will provide you with the information needed to spot the potential scams and identify the legitimate cash home buyer that will buy the home for cash and close quickly. 

When you want to sell your home to a legitimate DFW cash home buyer, you should begin by doing an online search.  A Google search will provide you with the names and website links to legitimate Dallas Fort Worth area cash home buyers, like OutFactors.com.  A legitimate quick close cash home buyer will have an extensive website that explains their programs, has customer testimonials, and will provide a lot of information to help a seller.

BBB accreditationWhat information should you look for to determine if they are legitimate cash home buyers?

  • Is it operated by a person with a Texas real estate license? Is the license in good standing?
  • How long has the company been in business?
  • Does the company have BBB accreditation?
  • What purchase contract forms do they use? Are they standard state-approved contracts forms?
  • Is a Texas licensed title company doing the closing?
  • Do they offer many different programs and willing to customize terms to meet your needs?
  • Does the seller decide when the closing will be?
  • How much deposit is being paid at contract signing? Is it at least 1% of the sales price?
  • Do they offer a program that will allow you to pick your move-out date?

Most importantly, are they a local company that is willing to answer all your questions and put everything in writing?

A legitimate cash home buyer will have all of the above!

With a reputable cash home buying company, like OutFactors, you will get a fair all-cash offer, close quickly using standard easy to understand contract documents under terms that meet your needs. OutFactors has been in business for over 19 years and is among the most respected cash home buying companies in the Dallas Fort Worth Area area.  When you request an offer from OutFactors, there is absolutely no obligation or cost.  Don’t forget to ask about our Sell and Stay Program, which is designed to allow you to remain living in the home until you are ready to move.

What are the signs of a home buyer scam?

Although there are numerous types of home buying scams, most of them have things in common that make them easy to spot.  Here are some of the tactics used by scam cash home buyers.

  • They do not use a state-licensed title company to do the closing. Instead, they suggest a “kitchen table closing” where they control everything.  Closings should always be conducted by a licensed professional.
  • They pressure you to sign a contract that you have not had a chance to read. A reputable cash home buyer will make sure you read and understand everything.
  • For the sake of convenience and speed, request you sign a paper with blanks or a signature page with nothing attached. Legitimate companies like OutFactors will never request you to sign incomplete or blank forms.
  • The contract forms they use are not standard Texas promulgated forms used by every licensed real estate agent in the state.
  • The deposit paid upon contract signing is only a few hundred dollars.
  • Their website is very basic and they have a limited online presence. What they do have is a bunch of small signs posted on street corners that say “Cash for Your House” or “We Buy Houses for Cash!”
  • They do not immediately provide you with an original signed contract but promise to get you a copy sometime later. This will allow them to alter the contract before providing you with your copy.
  • High-pressure sales tactics, pressuring you to make the decision today. OutFactors will never pressure a seller.

choose wiselyOne of the easiest ways to avoid scams is by asking each cash home buying company these questions.

  • Do you use Texas standard contract forms?
  • How much money do you put down as a deposit on contract?
  • Who will conduct the closing and hold the earnest money deposit?
  • Are you a Texas licensed real estate agent in good standing?
  • How do I know you will do what you say you will?

The people who are running a scam will not have good answers to these questions.  Scammers are looking for a quick score and will avoid people who ask too many questions.

Selling to a Legitimate Cash Buyer will Ensure a Fast and Hassle-Free Sale

Sellers are best served when they work with honest, ethical, and reputable local companies, like OutFactors.  Sell your home for a fair all-cash price and close on the date you choose.  The friendly and easy-going people at OutFactors will answer all of your questions and put everything in writing using Texas approved contract forms.

When you contact OutFactors, you will receive a legitimate all-cash offer in 1 day and can have the cash in your pocket in as little as 10 days.  Our contract terms are very flexible and designed to meet the needs of the seller, like our Sell and Stay Program that allows you to get the cash you need but remain living in the home.  Please visit OutFactors.com for additional information or if you are ready to receive your fair all cash offer click here and see why it is better and faster to sell to OutFactors.

Whether you decide to work with the wonderful people at OutFactors or sell to another company, we hope this guide on how to avoid scam home buyers was informative and helps you find a legitimate house buying company.

OutFactors
539 West Commerce Street
Suite 1205
Dallas, Texas 75208
[email protected]
(800) 420-7030

Comments (0)

Leave a reply

Your email address will not be published. Required fields are marked *

*