Many people like to sell your house to a cash house buyer to save them the time and uncertainty that is involved in house selling and to know exactly how much they have from the sale to use for their next house. Unfortunately, the industry has gained a bad reputation because of rogue cash buyers, but many companies, like us, are fully licensed and reputable. We are keen to help you know 10 ways to spot rogue cash buyers.
1. Does the company claim it will pay 100% the properties market value?
You can spot many rogue cash buyers because they make this claim in their advertising but it is simply not possible and it is best that you walk away! Another common ploy is to state that they will sell your property to investors for 90% of its market value and again, it is best to walk.
2. Has your house been valued quickly?
We buy any house property specialists Housebuyers4u recommend getting a property valuation done and reading ALL small print before signing on with a cash buying company.
A rogue cash buyer will spend little time at your property and ask for little information as they will be pressurising you into signing the evaluation form to accept both a lower price and hidden fees. It is crucial that you read all small print before you sign anything.
3. Will the value for the deal change?
Unfortunately, rogue cash buyers will suddenly drop their cash offer to well below the market value at the last minute. They know full well that you need to complete the sale because you urgently need the cash or are in danger of your property being repossessed or other important reason. They are banking on the fact that you will not have time to contact another cash buyer and start again or that because you signed an Option Contract you are unable to.
4. Have you been charged any upfront fees?
You can spot a rogue cash buyer if they ask for cash up front to cover such expenses as valuation fees or survey fees. They may well ask for money towards legal fees further down the line.
5. Is an RICS Surveyor being used?
Rogue cash buyers often use surveyors from other companies and can pass on the charge to you the seller.
6. Are they wanting to lock you into an Option Contract?
Studies have shown many cash buyers are not genuine cash buyers as they do not have the funds to buy your property. They are keen to lock you into an Option Contract because it means that you cannot sell your property to anyone else and it gives them time to secure a buyer for your house.
7. Do you have problems communicating with them?
Rogue cash buying companies are often small are often hard to communicate with once you have signed their paperwork – especially if they know they cannot keep their one week promise to ‘seal the deal’. They use delay and stall tactics to hold up the process by weeks as this gives them time to find a buyer.
8. Have you been offered an unrealistic delivery date?
Rogue cash buyers will often tell their clients that they will be able to complete the house buying process and deliver their cash in just ONE WEEK. This is simply impossible – even if they did have the funds in their company account, which is unlikely.
9. Have you chosen a reputable cash house buyer?
Many rogue cash buyers are small ‘one man bands’ in an industry that is not regulated. They often do not have the funds to buy a property outright but will sell the property quickly to get the money to pay you which is why sometimes they suddenly drop the amount you first agreed. It is best to check that they have a Company Registration Number and that they can provide you with proof of their cash funds.
10. How can you verify your chosen cash house buyer?
If you would like to verify your chosen company, your local office of title deeds will be allow you to make a search using the buyer or company’s name and this will soon show up their recent and current buying activity.
Checking their website for customer feedback is also useful – although some scammers use fake testimonials.
We hope our list has provided you with the right information so you’re able to make the correct decision if you opt for selling your home with a house buying company!