What Are Cash House Buyers? Is It Safe To Sell a House to Them?
Cash house buyers, as the term implies, are home buyers who purchase properties outright with money, which means without a mortgage loan or financing. Many sellers are drawn to cash buyers because dealing with them means faster closing time and no buyer financing fall-through.
In simple words, a cash home buyer is a company who can make an immediate offer on a house and can purchase it quickly. This makes cash home buyers a great option if you want to sell your house quickly. Hence, if you are someone wanting to sell your house fast and thinking, ‘ who is the best person or company to buy my home,’ the answer is a cash house buyer.
What’s it like to sell a house to a cash buyer?
If you are familiar with the conventional way of selling a house, then you are already familiar with the process of selling a house to a cash buyer since it is essentially the same as selling to any other buyer. The difference is that it is quicker and simpler. Thanks to not needing a mortgage application and underwriting process to get funding and not depending on the sale of an existing home to produce the cash needed to buy the house.
Nonetheless, a cash buyer still has to provide proof of funds to complete the purchase, but this won’t rely on a mortgage lender processing their application and needing a valuation that can cause delays.
Is it safe to sell a house to a cash buyer?
Yes, it is safe as long as you are selling it to a legitimate cash home buyer. In fact, you can sell your home for cash and make a large profit from it. However, you should be careful since there are scam artists who pretend to be a cash home buyer. Most of them work from a distance, this way they won’t be anywhere close when the fallout happens.
To make sure you sell your house to a legitimate cash buyer, you should know the tactics of these scam artists:
Paying in Check
In nearly all cases of fraud where a home was purchased in cash, the buyer rendered a check. The seller accepted and deposited the check, then the buyer suddenly changed his mind and asked for a refund before the check was cleared. Later, the buyer’s check bounced. The lesson is to never refund cash for a check until it clears the bank.
Buyer Not Checking the Property
It’s a red flag when a buyer agrees to purchase your property without even seeing it. It doesn’t necessarily mean that all buyers who purchase a house without viewing the property are scam artists, but it’s one of the immediate indicators. Make sure to take extra precautions when dealing with a buyer who passes on seeing your house.
It is common for scam artists to communicate through emails. Usually, it is easy to detect a fraudulent buyer because of their poorly written email. However, there are experts who will make you believe that they are credible, attaching documents that seemed to be legal including proof of funds statement and a passport. If this is the case, make sure to follow the money trail and make sure that it is in your account before giving any payment refund.
It is mandated by law that businesses report to authorities any cash payment above $10,000. Any payments that seem suspicious should be reported to law enforcement. Don’t think twice to contact authorities if you suspect a fraud on a cash payment for a property. The money might come from illegal activities. If this is the case, you could lose your house.
A cash offer for a house offers a lot of benefits when you deal with a credible cash home buyer. Learn more about what makes a legitimate cash buyer here.