Things to Watch When Selling a House for Cash
Receiving cash for the sale of a home is a homeowner's dream.
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It is possible to sell a home for cash and make a large profit, but it's also possible to get scammed. Scam artists' strategies are sometimes obvious, but others are more subtle and difficult to detect. Most do it from a distance, so that they aren’t anywhere near the fallout when it occurs. Learn their tactics to ensure you sell your home to an honest buyer.
Check Rendered
In virtually all cases of fraud where a home was paid for in cash, the buyer rendered a check. The seller or real estate professional accepted and deposited the check. The buyer changed his mind and asked for a refund. The seller or real estate professional refunded the amount of the check. Later, the buyer’s check did not clear the bank, and the seller or real estate professional was out the entire amount. The lesson learned is to never refund cash for a check until the check clears the bank.
Site Unseen
Another situation that throws down a red flag is when a buyer doesn’t need to see the property. That doesn’t necessarily mean the buyer is a scam artist, but it’s a good up-front indicator. Proceed cautiously when a buyer passes on viewing the property.
Email-Only Communication
One of the latest scams occurs via email communication. Fraudsters notify real estate professionals via email that they want to buy certain properties. Many agents noted that the emails were obviously fraudulent based on poorly written content. It was obvious the emails came from someone who had no intent to buy the property noted. In one case, however, the buyer seemed credible. He presented documents that appeared to be legal, such as a passport and proof of funds statement. In a case like this, follow the money trail and ensure that it is in your account before providing any refund of payment.
Suspicious Payment
By law, businesses must report to authorities any cash payment over $10,000. In fact, any payment that appears suspicious must be reported to the authorities. Don’t hesitate to contact law enforcement if you suspect fraud on a cash payment for a home. The money could originate from illegal activities, such as the sale of drugs and money laundering. If that is the case, you could lose your home.
Haggle-Free Home
When the purchase of a home is haggle-free, it may not always be legitimate. Buyers typically negotiate a purchase. Shrewd investors almost never pay full price for property, and neither do most discerning buyers. Although it does happen at times, it is a rarity. If a buyer doesn’t negotiate a purchase, that is a good indicator of suspicious behavior. In this case, proceed with caution.
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About the Author
Sherry Davis Zander began writing professionally in August of 2006. Previously, she worked for Sprint as a project manager. When it comes to subject matter, Zander writes the gamut. She achieved her Bachelor of Arts in management and human relations in 2004 from MidAmerica Nazarene University.
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