How to Avoid Scams When Selling to a House Buying Company

Estimated read time 3 min read

Owning your own home is one of the biggest investments of your life, so it’s important to be wary of any scams when selling it off to a home buying company. Here are some tricks for avoiding such mishaps:

Don’t Be in a Hurry to Sell Your Home Soon

One of the biggest red flags for potential scams is a seller who wants a fast sale. Many home buying companies will buy homes quickly and at great prices if it’s the right fit, but only if it meets their criteria. They may offer money that you feel compelled to accept but may later decide not to purchase your house. Don’t be too hasty when considering accepting an offer from them! Need to sell your house quickly? Click here to see how The Cash Offer Company can help.

Never give up Your Right to Negotiate

As the seller of your home, you have the right to negotiate with the home buying company you select. You have the option to walk away or submit a counter offer and should never feel pressured into accepting terms that don’t suit you. Be honest and open throughout the entire process even if this means meeting some of their demands.

When in doubt, always request a background check or references from any home buying company you are thinking of selling your house to. You are under no obligation to let them tour your house; so don’t feel obliged to accept requests that make you uncomfortable.

Never sign a contract without thoroughly reading it

Make sure you comprehend all details and clauses of the contract before agreeing to anything. Even if the company appears trustworthy, there’s always that chance they could be up to something illicit.

Avoid Upfront Payments

One of the biggest scams involves companies that promise to pay the seller upfront instead of receiving and holding onto the money for a set period. If you decide not to purchase their home after all, demanding your money back could prove challenging.

Never pay extra fees

Home buying companies often attempt to take extra money from you through early closing costs. Make sure that any fees charged upfront are reasonable and do not affect the quality of their homes or reputation. Some companies will include hidden costs like application fees and mortgage insurance which could add thousands of dollars onto your final closing cost.

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