You've seen the signs on the highway, We Buy Houses, fast sale, cash, etc. Real Estate investing has spawned yet another scam niche, only this time theyre not selling a get rich quick scheme, no this time they want your house.
Now before we go any farther, I want to tell you that this article is only referring to unethical or scam companies. There are many legitimate House Buying companies who do good work, without ripping people off.
A brief overview of a scammers business in a nutshell. They buy houses quickly and for cash. In order to make this work they usually have someone else lined up to resell the house to. That doesn't sound so bad though.
It's how they make their profit which is questionable. Its made from the equity in your house. You see, more often than not, they only offer enough to cover your dept. They start by coming to see the house, they walk through and talk with you. They'll try to get you to tell them how much you own on the house, even though its none of their business. They do this to convince you to trust them, that they want to help you.
They are not on your side, this is their business and they do it by convincing you your house isnt going to sell any other way, that its in bad shape. You're not going to benefit from this deal.
It gets worse. No only will they expect you to take their offer, depending on how they operate, you might end up not having enough money to pay your outstanding mortgage once you do sell.
The worst companies will try to get you to sign over your deed, you might think your house is sold but its not because you still have a mortgage on it. Now they control your house and you're stuck with a mortgage to pay. Avoid any deal that keeps you holding a mortgage on the house, even after you sell it.
If you are thinking of using a We Buy Houses service, be sure to read everything before signing, get all agreements in writing and ask questions about anything you don't understand. If you need help talk to bank, also investigate the company by calling any applicable state real estate associations to find out about any complaints by previous customers. Rule #1, verify all information they tell you, follow this advice and you'll be safer and happier.
Be careful of We Buy Houses Scams, see this informative article. It's got great advice on who should use a We Buy Houses service.
Subscribe to:
Post Comments (Atom)
Thanks for posting this article. I feel relief reading this. You have just made my decision clear enough of selling a property. Thanks!
ReplyDeleteRemovalists Australia
I absolutely agree with you there are a lot of scammer out there. That is why it’s important to do your own research about a certain “We buy houses Company” you can start by Googling.
ReplyDeleteYou might be interested to know that the link to Clinton Mollwood's Wordpress blog doesn't work. It has been suspended for a TOS violation.
ReplyDeleteNeed to sell your house fast? We buy houses in Charles County, MDand surrounding areas in as little as 7 days. If you're saying " I need to sell my house fast!", we'd like to buy We Buy Homes Fast & Sell Your Property in Hughesville
ReplyDeleteIt's a helpful Strategies To Make Money Selling Houses. I think for selling house or home we need to choose cash buyer why not they pay money in any condition even house need to repaired. WE BUY HOUSES FAST SAN DIEGO CA
ReplyDeletei agree with Rule #1, that people should verify all information they tell you, follow this advice and you'll be safer and happier. great work in informing people about this! Davao Real Estate
ReplyDeleteThanks for this. I really like what you've posted here and wish you the best of luck with this blog and thanks for sharing.
ReplyDeleteWe Buy Homes Calgary
We work with sellers in many different situations, pay cash, and will close on a date of your choice. We Buy houses
ReplyDeleteI love visiting sites in my free time. I have visited many sites but did not find any site more efficient than yours. Thanks for the nudge! how much will I make selling my house
ReplyDelete