Cash Sale: Protect Yourself From Unscrupulous Home Buyers

Homeowners who decide to sell their homes for cash have ways to protect themselves from unscrupulous buyers. First, do your due diligence and make sure that the company is accredited by the Better Business Bureau and has an A rating. Second, look at what homes the company has bought in your area, preferably in your neighborhood. Third, if you are considering a company's offer, ask for earnest money and proof of funds. 

Often it is not a company that buys a home with cash. Individuals who buy homes and flip them for resale also purchase homes with cash. Either way, check out any individual or company before you sign on the dotted line to protect yourself from scams.

Do Your Due Diligence 

It is a no-brainer to look up potential companies to see if they are accredited by the BBB and what kind of rating they have. A company should not have current grievances against it. If a company is not accredited by the BBB or has a poor rating, seek other companies to consider.

Ask For Transaction Records

Ask any company that you are considering what properties they have bought in your area. If they do not have a list ready to show potential clients, consider moving on. Many online sites allow you to search for a particular company or a particular property. You can always go to your local assessor's office to find out who owns a property. 

Ask For Earnest Money

Once you have chosen a company to work with and an offer has been accepted by you, it is customary to ask for earnest money. This "good faith" deposit assures that the buyer is serious about completing the home purchase.

Ask For Funding Proof

Obtain a certified document that the individual or company buying your home has enough funds to complete the transaction. The proof of funds letter may actually be required by your bank if you still owe a mortgage.

If you choose to sell your home for cash, be aware that a quick sale may not fetch the best price. Getting top dollar for your home is more likely possible if you list with a real estate agent or if you choose to sell on your own. It may take longer for your home to sell, but if you are willing to go through a longer process, the payoff may be worth it.

Learn more about how to sell your house for cash.