After listening to stories of fake cash home buyers, you may be worried sick and not sure whether to hire a realtor or sell your home for cash. Trusted people like your friends and family will refer you to reputable cash home buyers hence take advantage of that to protect yourself from scammers. Verbal agreements are not recommended even if they are recorded hence insist on signing written hard copies. This is how you identify a fake cash home buyer.
When a high offer comes your way, wait until the excitement is over and think through the offer before you sign the sale and purchase agreements because some of them excite sellers with high prices and rush them into signing these documents out of emotions. The scammers will find so many excuses to give you when it comes to payment because they will pay you less the amount of money that you bargained for without consulting you. You will have other option than to dance to their music because you they have evidence that you signed the sale and purchase agreements which will be a disadvantage to you in court. To avoid getting into this situation, request for two percent of the buying price as the earnest money payment. Earnest money payment will bind the contract because it proves that they intend to buy the home; therefore, you should reserve it for them.If the buyers have no money, they will not be able to raise the earnest money payment, and that will be your wake up call. Agree with the buyer to resell the home and refund their earnest money if the buyer does not complete payment of the remaining amount within a week.
Other scammers refer to use equity scheming mischief. These scammers sweet talk the buyer into transferring the deed of the house before they make payments because it is an opportunity for them to swipe your equity. Who does that! The scammers will either resell the home, secure a loan with it or rent it out to make a profit out of it without bothering to pay you. You are left with more than enough trouble because you have to pay a loan that you did not benefit from to rebuild your credit score or the blender will take the home from you.
You may have never heard of the bait and switch trick that fake cash home buyers use, but it is a common old trick. The scammer has the confidence to win the trust of the buyer because they are unsuspectingly professional, inspect the home and give you a market price offer.
The confidence of the scammers and the trust that you give them will not make you not to notice the few changes that they make in the sale and purchase agreement to suit their scamming intentions. Before you sign any document, read it several times or hire a transferring lawyer to go through it and sign it in the presence of your transferring lawyer.
You may find a cash home buyer who claims to be a foreigner. If your home has been listed online, be ready to get scamming emails and calls from foreigners who claim to be interested in buying it for cash. These are cyber criminals who will hack your bank account and transfer your money to themselves without your knowledge hence never give them your bank account’s information.