The idea of selling your house to a We Buy Houses company is unconventional for sure. However, typically these companies are individuals who either rehab the house or want to fix it up and rent it out. Like any industry there are some dishonest people trying to tack advantage of people in search of making the most money possible…No matter who they hurt. Don’t let a few bad apples spoil your entire perception of all home buyers.
There are some fairly easy ways to find out if you are dealing with a good, credible company.
Reputation
Among the honest people in the house buying industry, having a good reputation is very important. Much of their business is word of mouth and through relationships that have developed over time. This is all good to know, but how do you know you are dealing with a credible company? Here are a few things you can check on…
This should be your first stop. If a person feels they have been taken advantage of or just had issues with a company they can report them to the BBB. All these reports and reviews of the company are freely available to everyone. If you can’t find any reports on the company that means they might be new or are a good company.
Are they a Local Home Buyer?
Knowing the area and knowing the people of an area is important for a home buyer. Many times they live in the community themselves. Another reason to work with local home buyers is that they can give you the best price for your home because they know you may live in the nicer part of town.
Will be okay with lawyers?
Honest buyers should be transparent. They should be willing to divulge and be honest about their intentions. Having said that, having lawyers involved in the selling process should not be a problem for your potential buyer. Many times the buyer will have their own lawyer as well. If both sides choose to use attorneys then all contractual items will be handled by them.
Proof of other transactions they have closed
A final, but good question to ask is if they have proof of other home purchases that have closed in the past. This simply proves that the buyer has gone through the process before and everything should go smoothly. Your home will be sold and you will get your money in a timely manner.
Reliability
Nothing builds bad feelings like a company who doesn’t return your phone calls. An honest home buyer will always be reachable by phone or email and if they are not will return phone calls within 24 hours.
Another bad sign is when they miss meetings or are late. All these things are traits of dishonest and disorganized people. Reliability is a sure sign that your buyer will follow through on what is said and agreed upon.
Proof Of Funds
If the buyer offers cash, make sure they can show you proof. A bank statement, a letter from their lender or any other acceptable proof of funds. Usually the buyer will not be willing to show a bank statement, however it is acceptable to have their bank write a “proof-of-funds” letter saying the money is available.
Background Check
You can never be to safe or sure, so it is a pretty good idea to do a back ground check on the buyer. If you are still unsure of the buyer after talking with them you can do a background check. A good place to get started is at the Government Public Access website. If the buyer has nothing to hide they should have no problem allowing you to do this.
Use your Gut
When it is all said and done it really all comes down to your GUT. Even if they have passed every test and seem like a good person. Trust your gut because you’ll never regret going against your better judgement.
