If you are running way from fake cash home buyers, you may come across fake realtors too; hence the solution is to know how to identify a scamming cash home buyer so that you are not tricked. 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 prove to you how serious and honest they are with the transaction because this payment is made for the seller to hold the property for the buyer. You should get alerted when the buyer cannot make the earnest money payment because that is a sign that the buyer has no money to buy your home. Insist that the buyer pays the remaining amount within a week or you will resell the property.
Equity skimming is another common plot that scammers use. The scammers promise to pay after you transfer the deed because they want 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 will be left with the responsibility of paying the loan to save your credit score or lose your house because the house was under your name when the scammer was securing the loan.
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 is confident enough to gain the trust of the buyer because they will create a professional relationship with the buyer, view the house and negotiate your quote.
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. Look for a referring lawyer to review the documents and go through them too then sign them before your lawyer.
The buyer can claim to be foreign, and that ma impress you because foreigners are known to have money, right? Most of the scammers to claim to be foreigners communicate strictly via email or phone calls and convince you that they came across your home on an online listing. Do not give them details of your bank account because they want is to steal the money from your account using online means.