Selling a home can be a very stressful process, especially when you need to sell quickly. Many homeowners in Columbus Ohio turn to cash home buyers for a fast, convenient, as-is sale. However, with the rise in popularity of cash home buyers, there has also been an increase in scams. Understanding how to avoid scams with cash home buyers is crucial. In this blog, we’ll discuss common scams in the cash home buying industry and provide tips to help you avoid becoming a victim.
Common Scams in the Cash Home Buying Industry
Fake Cash Home Buyers in Columbus Ohio
One of the most common scams involves fake cash buyers who pose as legitimate investors. These con artist often contact homeowners through cold calling, postcards and text. They have no intention of actually purchasing the property. Instead, they aim to obtain get you to sign a purchase contract then sell the contract to a third party. To identify fake cash buyers, watch out for the following red flags:
– Lack of a professional website or online presence.
– Not showing any type of proof of funds.
– Reluctance to meet in person or having you meet a third party.
Purchase Contracts That Can be Assigned
Purchase Contracts That Can Be Assigned
When dealing with cash home buyers, it’s essential to understand the terms and conditions of the purchase contract, particularly the assignment clause. An assignment clause allows the buyer to transfer their contractual rights and obligations to another party before closing. This practice is common in real estate investing, often used by wholesalers who find properties at a discount and sell the contract at a higher price. While assignable contracts can be legitimate, they can also pose risks if not handled properly. Lack of transparency about the intent to assign, potential delays in closing, and lower initial offers are some issues to watch out for. If the original buyer plans to assign the contract, they might offer a lower price to ensure they can make a profit when selling the contract to another party.
Protecting Yourself From the Assignable Contract Scam
To protect yourself from scams involving assignable purchase contracts, clarify the terms in the contract and negotiate to remove the assignment clause if preferred. Ask detailed questions about the process and timeline if an assignment is intended, and request information about the potential assignee. Including contingencies that allow you to cancel the contract if the assignee does not close within a specified timeframe can provide additional protection. Consulting with a real estate attorney before signing any purchase contract ensures that your interests are safeguarded. Verifying the buyer’s credentials, requesting proof of funds, and meeting with the buyer and potential assignees in person can help you distinguish between legitimate assignments and potential scams. Understanding these aspects will help you navigate the process and avoid scams with cash home buyers.
Tips for Avoiding Scams Cash Home Buyers
Verify Credentials of the Cash Home Buyer
Before engaging with any cash home buyer, you want to verify them. Real buyers will have either proper licenses or certifications. To verify a buyer’s legitimacy:
– Check their business license with the State of Ohio or real estate credentials.
– Look for membership in professional organizations.
– Confirm their physical office location and contact information.
Read Reviews and Testimonials
Reviews and testimonials from previous clients can provide insights into the legitimacy of a cash home buyer. Look for reviews and pay attention to recurring themes. Positive testimonials might indicate a trustworthy buyer. However be cautious many reviews online are fake. Look for video testimonials or pictures of real people. When reading reviews:
– Look for consistency in positive feedback.
– Be wary of buyers with multiple negative reviews.
– Consider both the number and quality of reviews.
Get Everything in Writing
Always insist on having all agreements and offers in writing. Verbal agreements cannot be enforced and can lead to misunderstandings. A written contract should include all terms and conditions of the sale. Make sure that the agreement covers:
– The purchase price and payment terms.
– Any contingencies or conditions.
– Detailed information about any fees or costs.
Consult with Professionals
Real estate attorneys have the expertise to identify red flags and ensure a fair transaction. To make the most of professional advice, hire a real estate attorney to review contracts thoroughly and seek their recommendations for reputable cash home buyers. Their knowledge and experience can help you avoid scams with cash home buyers.
– Hire a real estate attorney to review contracts.
– Seek recommendations for reputable cash home buyers.
Meet the Cash Home Buyer in Person
Meeting cash home buyers in person can help you gauge their professionalism and legitimacy. During the meeting, ask detailed questions about their process and experience. Pay attention to their responses and behavior. When meeting in person:
– Schedule the meeting at their office if possible.
– Bring a list of questions about their business and process.
– Trust your instincts if something feels off.
Steps to Take if You Encounter a Scam
Report the Scammer to Authorities
If you encounter a scam, it’s crucial to report it to the appropriate authorities. Reporting scams helps protect other homeowners and can lead to the prosecution of scammers. To report a scam:
– Contact your local police.
– File a complaint with the Better Business Bureau.
– Report the scam to the Ohio Division of Real Estate
Seek Legal Advice
If you have fallen victim to a scam, consult with a real estate attorney to explore your options. An attorney can help you recover lost funds or property and provide guidance on the next steps. When seeking legal advice:
– Gather all documentation related to the transaction.
– Provide a detailed account of your interactions with the scammer.
– Follow your attorney’s recommendations for pursuing legal action.
Conclusion
Avoiding scams when dealing with cash home buyers in Columbus Ohio is essential to ensure a smooth and safe transaction. By understanding common scams, verifying credentials, reading reviews, and consulting with professionals, you can protect yourself from fraud. Always insist on written contracts and meet buyers in person to gauge their legitimacy. If you encounter a scam, report it to the authorities, seek legal advice, and share your experience to help others.
For more information on cash home buyers and selling your house fast in Columbus Ohio, check out our related blog posts:
– How Cash Home Buyers Evaluate Properties in Columbus Ohio
– Discover the Benefits of Cash Home Buyers
– Coping with the Emotional Side of Selling Your Columbus Ohio Home Quickly
– Why Timing Matters: The Speed and Convenience of Cash Sales in Columbus Ohio
By staying informed and vigilant, you can navigate the cash home buying process with confidence and achieve a successful sale.
EasySell is a cash home buying company located in Columbus Ohio. We can be reached at 614-969-0624 or visit our website www.webuyhousescashohio.com
