As a genuine cash house buying company, we here at Housebuyers4u take pride in the work we do and level of service we provide to our customers, so when we hear about ‘we buy your house for cash scams’ like this, it really sets a fire in our bellies!
To help put a stop to cruel events like this, our expert team has done their part and put together a list of 7 we buy any house scams home owners should absolutely be aware of before pursuing a quick house sale with any house buying companies.
If you’re someone who is looking for a quick cash sale the 7 points mentioned in the above graphic will help you identify these rogue firms. Below we’ve added some extra information how to spot these scams.
1) They are Not Genuine Cash House Buyers
One of the first things you should do as a homeowner is confirm whether the the firm you are dealing with are genuine cash buyers.
You’d be surprised to find that many so called ‘quick house sale‘ firms are in fact either middle men, lead generation companies (that sell your details onto genuine cash buyers) or simply normal estate agents who operate under a false guise and try to sell your house on the open market after they’ve tricked you into signing a contract.
Before picking a house buying company, confirm (multiple times if you have to) that they are true cash house buyers and will buy your house for cash.
2) Inaccurate Valuations of your Property
Many ‘fake’ we buy any house companies often miscalculate the true value of your property resulting in you either believing you can get more for your property or the house buying company offering you less for your property just before completion. We will cover the latter in more detail a little later.
We here at Housebuyers4u use the most recent and top of the range market data and tools to determine the true value of your property. Our strict valuation process supports this as we generally ask for extra information which helps us more accurately predict what your property is worth.
Other cash house buyers will ask for less information and try to push through the sales process which could lead to your property being valued incorrectly and you losing out.
These companies will tell you things like “we will buy your house for more than market value” in order to get you on their side.
3) Reduced Cash Offers Just Before Completion
We briefly touched on this earlier but another common ‘sell your house fast scam’ is where a firm over values your property or gives you a figure they have no intention paying. Then as completion time approaches they take advantage of your situation and start bombarding you with messages to try and get you to agree to a lesser figure so they can make more money out of the transaction.
If you find yourself in this position, it could be that the firm you are dealing with are not actual cash house buyers. They are just middle men and are now trying themselves to sell to true cash home buyers. However, because they over valued your property, the cash buyers they are trying to sell to will not buy for that amount which means they have to get YOU to agree to a reduction so they can get rid the house!
Don’t be surprised if the firm tells you they are lowering their offer because of external factors or market value changes. In almost all cases this is a lie.
Furthermore, a genuine quick sale firm will be able to buy your house within 7-14 days pretty easily. It’s very unlikely that any external factor or market change will force them to make a low ball offer in the space of just a fortnight!
4) Be Vary of Any Hidden Fee’s
It’s important to note that both legit companies and firms that pose as cash buyers differ in extra or ‘hidden‘ fee’s so be sure to confirm what you will be paying for before signing anything.
These companies do this to try and make some extra money from the sale of your property. The hidden fee’s charged often come in the form of up front fee’s, survey fee’s or other fee’s that are not always made clear at the start.
We here at Housebuyers4u cover all extra fee’s which include paying for a RIC’s survey! See the image below for more information.
As a general rule of thumb, try to remember that the better or best we buy any house companies won’t charge you any extra fee’s at all.
5) False Promises on Completion Time
Many quick sale firms claim that they will buy your house in 7 days. This is very much do-able but only if they are true cash house buyers.
Make sure the company you are selling to have the cash reserves to buy your house as this is the only way they can complete a sale within 7 days.
If the firm cannot meet the deadline they have set (whether that is 7 days, 14 days or more) then alarm bells should start ringing on your side.
It could be that the firm is trying to sell your home on the open market or sell your details onto real cash house buyers.
6) Watch Out for Option Agreements
What are option agreements?
They are agreements put into the small print of a contract between you and the buying firm.
One common ‘agreement’ you should watch out for gives these dodgy firms the right to sell your house via a third party. To avoid this scam read the small print and look out for something like:
If you see something like this, do yourself a favour and find another firm who will buy your property – you’re not getting a quick cash sale with them.
7) Unregulated Rent Back Schemes
A firm must be FCA (Financial Conduct Authority) regulated to offer rent back schemes.
If you’re looking to sell up and then rent back, remembering this will help you avoid this scam. Simply ask the firm which is buying your home if they are regulated by the FCA.
This regulation was put in place because many rogue firms in the past would promise sellers that they could stay in their homes for an agreed amount of time after they had sold it, but then after a short while they would force them out without warning!
The Bottom Line
There will always be people looking to make a quick buck so we don’t foresee we buy any house scams disappearing anytime soon, however, if you’re careful and research into a company thoroughly before selling up, you will have a much better chance at avoiding these types of companies.
We hope the 7 points we’ve provided in our article will not only help you to avoid getting scammed but also give you the confidence to sell your home via a house buying company as there are many legit companies out there who operate fairly!
Has the thought ‘how can I sell my house quickly for a good price‘ ever crossed your mind? Housebuyers4u might be exactly what you’re looking for!
We are genuine cash buyers with decades of experience and have many we buy any house reviews from 2018/2019 from our past customers which you can read for yourself to help put your mind at ease before proceeding with any sales talk!
If that’s not enough, we are also proud members of the National Association of Property Buyers which means we have to follow even stricter guidelines when purchasing homes.
Give us a call and see what we can do for you. Get your free no obligation offer today!