If you want to sell your house quickly, cash buyers are an ideal option.
Unlike other purchasers, cash house buyers don’t have to wait for a bank to approve to approve their mortgage. This process can sometimes take months.
There are numerous benefits to a cash real estate transaction, especially for houses that require a lot of work. If there are structural issues, C/O or permit problems, or other violations, these can prevent buyers from securing a mortgage.
However, there are also a few risks associated with cash house buyers. In this post, we’ll give you a heads-up on what to look for.
Red Flags with Cash House Buyers
Even if you’ve received seemingly legitimate paperwork from an interested cash buyer, there are a few things to look out for.
Where is the Buyer Located?
A foreign buyer who’s willing to pay for a home outright without ever seeing it is your first red flag.
Buying a house is a major investment, and people usually want to see what exactly they’re buying.
According to Trulia, sellers should be wary of buyers claiming to be from China or other foreign lands. They may say they’re looking to relocate, but are rarely available for phone conversations and insist on communicating via email.
Many people claim to be in these areas to use the time zone difference as an excuse for poor communication.
This brings us to our next point:
Have You Actually Spoken to the Buyer?
Beware of any buyer, foreign or not, who’s unavailable to speak on the phone or in person. If they insist on solely communicating via email, it’s often a sign of trouble.
Even if they’re quick to send over financial documents and payments, that in itself can be a red flag.
Did you even request proof of funds or any other information yet? If they seem too eager to proceed, take caution.
Was There Any Negotiation?
Most investors want the best possible deal. If a cash house buyer agrees to pay the full amount with no questions asked, it may be cause for concern.
Even if you feel the house was priced fairly, there’s usually some back and forth that goes on when agreeing on a final purchase price. This is especially true for people buying a house sight-unseen.
Finding a Legitimate House Buyer
While there are a lot of factors to consider when selling your home, you don’t have to eliminate cash buyers completely.
As long as you’re able to do research on the buyer and know who you’re dealing with, you should be able to find someone reputable.
You could start by Googling something like, “Sell my house fast Austin.” There are many online resources you can use to find the right buyer. It’s all about knowing where to look.
In addition to listing your house on real estate websites, you might look up investment companies that pay cash for homes.
If they’ve invested in a professional website and advertising collateral, it’s a good indication that they’re a legitimate company. They should also be available for phone consultations and display a professional demeanor.
Getting Ready to Sell Your House
If you haven’t already listed your house, consider what you can do to increase the home’s value.
Even cash buyers will consider upgrades that will save them money in the future.
Research businesses in Austin, TX that can help improve the look and function of your home. This will increase the chances of a quick sale.