If you are thinking of selling your home in the Dallas/Fort Worth area to a real estate investor, you need to know a couple of really important things. Many of the newer investors in town, yes even the massive ones with big advertising budgets, are getting a really bad reputation. Here are three things you need to watch out for:
If the contract you are presented with contains an option period, or the phrase “subject to” that should be a red flag. Many of these newer companies are using these bait and switch tactics to trick homeowners. The danger is, once they’ve inspected your house you could have a serious problem. Some inspections can damage your home. Other inspections can leave you with a serious disclosure issue. If you are selling your house as is, then the buyer should be able to make a commitment after a short 15 to 20 minute walk though. If they cannot, you are not dealing with the decision maker, or worse, you are dealing with someone who has bad intentions. This means if you are selling your house as is, you don’t want someone coming back to you trying to renegotiate or ask for repairs.
Low/No Non Refundable Earnest Money
Earnest money is the amount that is placed at the title company when the contract is signed. Many newer or larger companies will use a really small amount. These amounts typically range from $500 to $2,000. Earnest money is one of those things that are important in a contract. The buyer only has a certain amount of days to get it to the title company. The buyer (or seller) also cannot get from the title company without everyone agreeing. This is why a larger amount (we do 10% of the purchase price) is important. It reflects how serious the buyer is. So, if you are selling your house as-is, get more earnest money!
No Proof of Funds
It may be hard to believe, but many people who offer “cash for houses” actually have very little cash at all. A large majority of investors that offer cash for your house are actually trying to assign or wholesale your home. This is when the buyer sells their right in the contract to someone else. unfortunately, if they can’t sell it, they just back out. Often, they back out by walking away from their earnest money, or attempting to renegotiate. Asking for cash proof of funds up front can avoid that.
When selling your home as is for cash, you are trying to avoid problems. Most of our customers want to close quick, without any headaches. If you make sure the investor is serious, and is not trying to create a situation where they can back out, everything else can go smooth. Call us today if you are thinking of selling a home in the Dallas/Fort Worth area.