We understand that the majority of the time when people turn to cash for houses companies, it’s due to a personal reason. Whether it is family trauma, financial difficulties, or natural disasters, we’ve seen it all and we get it. Don’t feel shy, embarrassed, or ashamed. We have seen it all and know how hard it is to cope through such situations.
If you want to sell your property quickly for cash, you need to understand what types of cash for houses companies are out there. Some companies can actually do more harm than good.
It is important to realize when a seller accepts an offer for real estate, the person buying is legally allowed to back out due to contingency clauses often written in the agreement. One common contingency clause is based on funding. They must be able to secure funding or the buyer is allowed to back out of the agreement with little or no penalty. That becomes tricky business when dealing with some cash for houses companies.
Some smaller untrustworthy equity purchasing companies take advantage of these contingencies and make offers that they know they cannot afford, with the hopes that a different property of theirs will sell. Without the sell of the previous property, they are unable to fund the cash offer that they made.
With the offer in hand, you have several things to lose when the buyer backs out. The biggest expense is the opportunity costs. The time it takes to deal with a bogus offer is the time you could have spent finding a different buyer. You are back at square one and may have passed up better opportunities. You are also still having to pay on the mortgage, utility costs, and maintenance for the home you are selling. Simply put, companies that offer cash for houses knowing that they lack the funding can potentially cost you a lot of money.
One way to spot sketchy behavior is by noticing their interactions during the assessment. Do they fail to respond when you are expecting them to? Do they send you documents unsigned or partially completed? This could be a stalling tactic to try to buy them some time. And most importantly, how is their reputation? Do they have a website? How easily can you get them on the phone? If they are avoiding being contacted, they most likely are dodging upset clients. We recommend that you ask for proof of financing before accepting any offer.