How To Protect Yourself When Selling Your Home To A Home Buyer, Flipper or Investor
Generally when people come to a home buyer / home flipper, they’re in a relatively vulnerable place in their lives. Be it from the threat of a foreclosure, divorce, a death in the family, or simply a burden on their time, people come to home flippers / real estate investors because they want to sell their houses fast and with as little headache as possible. The unfortunate truth is that whenever there’s money to be had, the scam artists will come out of the woodwork to take advantage of you. Here is how to not get scammed by a home flipper with a low ball offer.
Get Multiple Offers
The first assurance you can create for yourself is to get multiple offers from different home buyers. Here at Great Northwest Home Buyers, we buy homes and houses in Seattle, Auburn, Tacoma and Olympia and whenever we go out to bid on a home, we’re generally not the first ones there.
This is a good thing.
When you get multiple offers from different home buyers, at least you’ll be able to take the highest and best bid, so you know you won’t be scammed by a low ball offer.
Ask About Their Process
The second thing you can do to prevent yourself from getting scammed by a home flipper, home buyer or real estate investor is to ask about their process.
Generally, a seasoned home buyer will tell you a series of steps starting with meeting at the property and ending with an inspection and signing of the purchase and sale agreement.
If you find yourself in conversation with someone who does NOT include a walk-through or inspection in their process, it means they’re “spit-balling” or over-inflating their offer just to get you into contract.
Once you are in contract (meaning they are safe), they’ll most likely start demanding a reduction in price.
So make sure both a walk-through and inspection are part of the process.
Know Your Options
Another way you can prevent yourself from being taken advantage of by a home buyer or real-estate investor is to know all of your options.
Most of the time a real estate investor will give you a “all cash” offer, meaning that they will give you a lump sum of money at the end of the transaction.
This is not the only option available to you.
For instance, if you have high equity in your property, you are also able to do seller financing. With seller financing, you can demand a higher end-price from the home buyer, and can also benefit from long-term cash flow via the interest on the seller-financed note.
Shop Local And National
The final option available to you to reduce the risk of being taken advantage of by a scam artist is to shop both local and national.
It is true that most of the investors you deal with will be local.
However, there are also national home buyers out there.
By approaching the national home buyers, it opens your pool up dramatically.
Moreover, most local investors are mom and pop investors, meaning that they’re just a one or two man show. If you reach out to a national investor, then you’re dealing with an entire team of people who have more resources at their disposal.
These national investors are generally more sophisticated in their offering systems, meaning that when they give you an offer, it’s usually backed by more data.
Go With Someone You Like And Trust
Even if you follow all of the above recommendations, there’s always a chance that you’ll be taken advantage of in the home buying process.
So just go with your gut.
If you’ve met with a home buyer in person and like and trust them as a person, it’s a good sign that the company will follow through with their word.
We buy homes in Auburn, Seattle, Tacoma and Olympia and would love to give you an offer on your home today. If you need to sell your house fast, reach out to us for an all cash offer today (or a seller financed offer!).
We look forward to speaking with you.