I’ll admit there may be a lot of we buy houses scams out there. Opportunists will always find ways to exploit circumstances to take advantage. But don’t assume everyone is the same.
Let’s address some common myths about cash house buying companies and how to avoid situations too good to be true.
Myth 1 – You should always use a realtor to be safe – NOT TRUE
Many believe selling a house for cash is a scam and you should always use a realtor to be safe. While it’s true that some houses for cash companies are out to take advantage, that’s not the case for everyone.
Selling your home privately is absolutely legal. You don’t need a real estate agent. But you should use a lawyer.
MJS Properties understands the many reasons people want or need to sell their homes in a nontraditional way:
- Struggling financially
- Battling different emotions or health issues
- The condition of the home may be embarrassing
- Tenants could be challenging
- You may have gotten into some trouble by trying to do it yourself
- You’re just too busy or you need to move fast and don’t have the time to take care of all the details
We appreciate sensitive situations and we want to make it easy as possible to buy your home securely and privately for cash. MJS Properties specialized in unique solutions for difficult problems.
Let me give you an example….
A lady inherited a house after her mother passed away. Every room was full of contents and the new homeowner was completely overwhelmed.
We came in, cleaned out everything, fixed the damages, and made it a brand-new home for the next owners to enjoy. She could move forward to her next chapter more quickly, with less stress. Imagine how long it would have taken her to do it herself instead of letting us take care of it for her.
If you still have reservations, I would be happy to provide you with references and recommend lawyers, and you can be as involved in the process as much or as little as you feel comfortable with.
Listen to Matt Scott bust the common myth that all private buyers are we buy houses scams.
Myth 2 – Selling a house for cash is a rip-off – NOT TRUE
Many home sellers insist they will always get more selling with an agent. They are partially right. Your neighbour may sell his house for $500,000. But, did you consider what your neighbour also had to spend in order to get that price for his house?
Potential Cost of Selling You Home with an Agent
- $1,000 for cleaning
- $2,000 for patching and painting
- $10,000 for repairs and upgrades – or even more depending on the condition
- $3,000 for staging
- Did they have to pay for a storage unit or for the disposal of some of their things?
- Were permits needed?
- Did he need a contractor?
- What about the outside – did it need landscaping?
- Did he have to pay for expenses of owning two houses – his new house and his old – while he waited for the sale to close?
- Then there’s the commission. He probably paid another $25,000 for that.
Did he really get to keep all of that $500,000?
Then think of the time and stress.
- How long did it take to get the house ready? How many weekends did he lose?
- How long did it take to sell the house?
- How often did he put his life on hold for an open house?
- Did it close on time?
Was he really enjoying life during all of that?
Instead…
Sell your home privately just the way it is in days, not weeks.
- No to-do list
- No additional expense
- No inconvenience
- Just cash in the bank
It may mean a smaller number on the sales agreement, but how much money and time did you save? Plus, you get peace of mind. Lower selling prices for less work and less expense do not equate to one of those we buy houses scams.
Listen to Matt Scott bust the common myth that selling your house for cash is a rip-off.
Myth 3 – All cash home buyers take advantage of those in vulnerable situations – NOT TRUE
Yes, there are some companies out there who try to pay the lowest possible dollar for your home just to turn around it and sell it for profit doing none of the work. They may even make you a cash offer with nothing but the hope of finding another potential buyer which can add time to your closing.
But there is a lot of competition for private real estate investors. Not everyone tries to take profit away from you when they buy your house. Do your research and find someone who buys houses for cash and truly wants to help. The best deal is beneficial to both parties.
An ethical house flipper is a real estate investor who buys a house and adds value to it in order to earn a profit.
MJS Properties is a full-service home buyer. We do not take part in we buy houses scams but offer the following instead:
- Vision to see all the potential in your home and what it takes to make it into a beautiful home for the next owner.
- Construction experience to understand what it takes to transform the home so you can be assured we provide a fair offer.
- Skills and team to complete the work.
- Financial support to make a secure and firm offer and close quickly.
We love going to work every day knowing we can help someone out of a tough spot and or a stressful situation with quick and easy cash home sales. And we take pride in our workmanship to make a house a home that the next owner will love.
Listen to Matt Scott bust the common myth that all cash buyers take advantage of those in vulnerable situations for profit.
How to Avoid We Buy Houses Scams
Typically, we buy houses scams begin when homeowners call a phone number they see posted on a pole or answer an ad in a flyer stuffed in their mailbox. But how do you know if these buyers are legitimate or not?
Here is a collection of red flags to look out for:
- Don’t sign an agreement where money flows directly from the cash home buyer to you. Use a lawyer to close the sale, including the collection of payment and transfer of ownership and keys.
- Avoid signing a contract that includes additional processing, administrative, or consignment fees. The advantage of selling privately is to avoid additional expenses.
- Make sure you ask for proof of funds to ensure the offer is secure. Some investors rely on tying up your home under contract while they try to find another buyer. This simply delays the closing process.
Ask for references or bank statements and other types of evidence so you know you are working with an honest, fair offer. Above all else, follow your instincts. If you discover an obvious we buy houses scam, report them to the better business bureau to protect future home sellers.
