People have been duped by fake realtors and scamming cash home buyers hence nowhere is safe but to protect yourself. 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.
Scammers use the highest offer tactic to get you excited because, in that excitement, they can rush you to signing the sale and purchase agreements that you have not scrutinized. When you get your payment, the buyers would have sent you less the amount you agreed on and give you excuses like a fall of the market price of your house. You are on the losing end in this scenario because you will have no evidence that you were duped when your signature is on the sale and purchase contracts. Make sure that the buyers give you two percent of the agreed-upon price as the earnest money payment to protect yourself from getting duped. The earnest money payment will protect you because you need the money for assurance that they are honest and serious with buying the home for you to hold it for them. A buyer who has no money will not be able to pay the earnest money payment, and that will be a warning sign for you to look out for. Demand that the buyer completes the reaming amount within four or five days or you will refund the earnest payment and sell the home.
Some scammers have resorted to equity skimming. The scammers insist that you transfer the deed and wait for payment because they will make it easy for them to swipe the equity of your home. 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. The scammer leaves you in hot soup because you will have no choice but to pay the loan to save your credit score or the loan provider will liquidate it to get their money.
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.
You will not realize the small changes that the scammer will make in the contracts of sale and purchase to steal from you once they have your trust because that trust will make you assume to go through the contracts keenly. Sign documents with the buyer in front of your lawyer after the lawyer has reviewed them with you and given you the go-ahead.
The buyer can claim to be foreign, and that ma impress you because foreigners are known to have money, right? Most foreign scammers will never show their faces but communicate online through emails and calls with the convincing language of how they are interested in your property after seeing it listed online. These are cyber criminals who will hack your bank account and transfer your money to themselves without your knowledge hence never give them your bank account’s information.