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Cash for Houses: Is Your Buyer Legit? 7 Rules They Must Follow

Is the business your are selling your home to legitimate?

READ TIME: 1 minute 24 seconds. Cash for Houses 7 Best Practices All Legitimate Buyers Must Follow.
Location: Denver, Colorado

DID YOU KNOW: That last year over 13,600 victims reported some type of real estate fraud according to the FBI’s Internet crime complaint center. 

Today I will teach you how to verify that the company that is buying your house is real, legitimate and is not going to scam you.

While the majority of scams in the real estate industry are associated with wire fraud one can never be to careful when selling a selling to a “We Buy Houses company’. WHY IS THAT?

Well for one thing, when selling a house large amounts of cash are involved, right? Even just a small error could become a very costly mistake. AND

I don’t know about you but when it comes to cash money I like to make sure all of mine is protected. So when selling your house fast for cash, or in fact with any real estate business or service you deal with, you need to make sure they are legit. Therefore this guide will cover the 7 things all legitimate cash for houses businesses must exhibit. 

Do not be alarmed and think that every buyer out there is a criminal because THEY ARE NOT however just like every industry there is the bad, the good, the better, and THE BEST!

Table of Contents

This is how you can trust WatsonBuys.com AND
know we are for 100% the real deal!

Watson Buys is registered and verified by the following entities including the IRS (we put it all out there so you know we are for real!)

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YOU MUST ALWAYS ABIDE BY THIS RULE OF REAL ESTATE

There are to be no exceptions. You must always follow this rule. It is the UNDISPUTABLE golden rule of all real estate transactions. AND it applies to buyers, sellers. It applies to any house, in any condition and in any city!

If you learn nothing else you must learn this from me! Pay attention please!

Never ever sign a document unless you are absolutely sure you know what you are signing. This is of most importance when we are talking about the offer to buy your house. It is this offer, AKA a real estate contract, or purchase agreement, that determines just how much cash you will end up with after closing.

That is why it is so important to know what you are signing. 

Now before I go into further details…

Don’t you wish the golden rule, the one and only rule to follow was “Do unto others as you would have them do unto you”  In my honest opinion I believe if we all treated people in a fair and respectful manner then real estate transactions would be less stressful AND the world would be a better place What do you think?

However, the world is a little more sinister so I must up my game here.  And I will put my serious face on. Please excuse the excited tone, excessive use of exclamation points (!!!!??!!), and the profanity in this section. It is just so important that I get your attention and you follow the most important rule when working with any real estate company

Now, I do not include the most important rule in the 7 most important traits and practices of the best Cash for Houses companies. 

AND THIS IS WHY!$%!!@!%! (more exclamations etc.)

It is just so important! It’s that simple. Remember we like to keep things simple. AND simply speaking if you only sign when you know what it is you are signing you will absolutely avoid any costly mistakes that have ever occurred in real estate. 

DO you remember the rule??? DON’T SIGN UTIL YOU KNOW WHAT YOU ARE SIGNING!

Now, how can you be sure it’s ok to sign the document? 

You can be sure the document is good to sign if you have someone on your side that understands real estate contract law. In this case that would be a real estate attorney. While it may seem like so much cash (and it certainly is to me), paying a lawyer $300 an hour (or more) could save a lot of heartache at the other end. 

Have I made my point?

To Summarize: You absolutely must abide by this rule NO MATTER WHAT! I don’t care how much cash you are being offered, how great the deal is, or how much pressure the investor is putting on you. There isn’t a single business person (well successful business person) lawyer, teacher, or anyone in the world that will disagree with this rule – that I am calling the golden rule of real estate transactions.

This is what to do to avoid any costly mistake when you sell your house in any condition and for any reason

Yes, I am still going on about this! Honestly, I have seen some things go really pear-shaped for owners, or investors in fact when they were buying o selling a house. I do not want it to happen to you. So… for my final push

It doesn’t matter if you are selling a house in Colorado, Indianapolis, or TIMBUKTOO (it’s a real place, trust me!). When participating in any kind of real estate transaction, buying or selling, you must always do this to make sure you get the cash, that you deserve for your property and the deal is completed in an above-the-board fashion.

Only sign a document, particularly a purchase agreement, after you have read it and completely understand all of the terms completely. 

Checklist of 7 items every legitimate cash buyer must have.

This is how you can verify the business buying your house is not scamming you. Don't lose sleep wondering if you are going to get your cash money.

This is a summary of the 7 things every legitimate cash for houses company will have.

I am doing this, just in case you are in a hurry to sign that purchase agreement. Even if the buyer is telling you that you need to sign to sell right now, I must insist you read this. Then spend just a few moments verifying the business. 

This is the list of 7 items you must check off to verify the company buying your house is legitimate.

They must follow all applicable laws

Make sure they follow all rules, regulations, and laws that are required by from Local, State, and Federal levels of government have necessary (discrimination is one severe example)

The cash buyer must be accredited, verified and licensed

 The company that is buying your house must hold all required licenses and disclose them according to the law. Some cash buyers are also real estate agents. A realtor is expected to tell you their status when making a deal with you. Other rules and codes for realtors can be seen in this code of ethics publication. 

Second, the companies that the buyer uses to close the deal should also have the appropriate credentials. For example, a title company that does business in Colorado is governed and must be licensed by the Colorado Department of Regulatory Agencies.  

All buyers must use a title company when they purchase your house

Using a title company to buy and sell a house is not the law. However, it is absolutely best practice. 

Using a title company will insure the property and cash is transferred properly and legally. PLUS…

When selling to a house buying company you must insist that they use an independent 3rd Party Title Company to handle all the cash and exchange the ownership of the house and record the deed. Using a title company to close will ensure the process runs smoothly and is recorded properly. A properly recorded deed will make certain you are not liable for any future liens or fines on the property. Not only that but it will guarantee you get your cash money when you close. 

Real companies have real address, real phone numbers and real websites.

Make sure the buyer has a real physical address, phone number, and website. The more detailed and individual a website the less likely it is to be a fraud. If the website looks cheap and like all the rest there is a good chance it’s just a copy. 

Search online for customer feedback, complaints, and other information.

Search online for customer feedback, complaints, and other information. For example, we have more reviews on more business citations and review platforms than most companies combined. This is because we do a great job and people trust us. When researching online be sure to know how to spot a real review and a fake review. 

Ask the buyer questions about their business, how they buy houses and make sure they give you the facts.

A great way to catch anyone out is the consistency of the answers they give you.

Ask the company questions to verify all of the information you have found out about them. Ask them a lot of questions. And rephrase the same question if you want to be extra sure.

Who are the owners, how long have they been in business, are they local to you, when did you open your doors. (see what I did there?)

Make sure the answers the buyer gives you are consistent. AND this is one time when I will allow you to “Trust” your gut, just a little as you will develop an instinct that will allow you to compare one buyer to another. 

When it comes to a real estate deal I must insist that you get everything in writing.

Get everything in writing so that they can’t go back on promises. An easy way to record all of the promises made to you is through email. Email records, who sent it and when, and what they are communicating. AND the best part, you can always respond in a friendly way if you would like to record further clarification of how they plan to buy your house (e.g. Hi Jenn, so you said you would give me 1 million dollars and a lifetime gift card to my favorite coffee shop… right???? 😉 

of course this is just an example but hope fully you get what I am saying.

Final words to protect you when dealing with any real estate investor or cash buyer

Follow the golden rule of real estate transactions.

When it comes down to any real estate deal you do the terms of the deal are laid out in the contract. You know this now.

So, don’t sign the contract until you know what is that you are singing.

Quite honestly, even if you are dealing with the worst “We buy Houses” company on the planet, if the contract to buy your house is in your favor, it doesn’t really matter, right? 

I wish you the best of luck, although now armed with this knowledge you should be a little luckier than most, in your endeavor to sell your house.

If you have any questions about what makes a legitimate cash buyer or indeed about anything that pertains to we buy houses industry please do not hesitate to call or email us.

AND of course, as you know, Watson Buys is company that pays cash for real estate and we would be so grateful for the opportunity to discuss the plans for your house when you go to sell it. 

Useful Resources;

Fair Housing Act

Thus ends the summary section of what you must do to verify a real estate company is legitimate.

Of course, I would encourage you to continue reading. OR at least bookmark the site or share it with yourself on Facebook so that you can continue reading it at your leisure. 

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