05 Dec Selling Your Home For Cash – Whats The Catch?
Selling Your Home For Cash – What’s The Catch?
Thinking about selling your home for cash?
You may have seen signs on electrical poles throughout Hamilton claiming, “We buy houses!” or “We buy homes for cash.”
This should be the first tip-off that you might be in for a bit of scam.
Who Buys Homes For Cash?
These people are “investors” called wholesalers.
They prey on vulnerable people. Mostly people in dire debt, or seniors, buy their homes significantly undervalue then turn around the wholesale the property to someone else, often without a day of a mortgage payment.
They are one notch below loan sharks, they convince naïve and simple people that their “cash” offer has more weight than offers with a mortgage and then profit on the margin on the wholesale.
They cheat homeowners out of thousands of dollars because they don’t know the real value of their homes.
Sometimes, they even go as far as to report houses they want to buy for code violations – pushing the homeowner to sell under financial strain if they can’t afford to make the repairs.
In one case in Atlanta that was referred to Legal Aid, the wholesalers gained the trust of a senior homeowner by bringing her meals and offering to pick up their prescriptions. They then bought her home for $95,000 and sold it the same day for $130,000.
A house is a family’s biggest asset. Providing shelter, a home base, and also a source of income and down payment once they decide to sell.
Locally, such scams have been going on for quite a while.
In fact, I recently become aware of a husband and wife team peddling this kind of disturbing plot.
What’s worse? The wife is a realtor.
Not all investors are bad news. Most are like you – just trying to secure income to support their family or have a retirement fund.
You should contact a Realtor for a second opinion if you’ve been approached by someone offering to buy your home for cash.