Are We Buy Houses Companies Legit?
We Buy Houses Reviews
Here’s the good news: There are a few legitimate “We buy houses” companies that provide a needed service for many people. These companies buy houses and other types of property everyday, and are ethical and proficient in what they do. (Make sure to follow the steps below to find the good ones!)
Here’s the bad news: Many of these “We Buy Houses Companies” are not legitimate companies. A lot of times it’s just a one-man show, and that person doesn’t even have the cash to close. What’s worse, they might not even have a letter of approval for a loan to buy your property. A lot of these people, or “companies” might still be learning how to actually buy real estate. If you’re in an actual situation where you need to close, make sure you don’t tie yourself up with one of these types.
Here is a way to separate the legitimate companies from the “late-night TV infomercial types”:
- Do not be afraid to ask a lot of questions! The legitimate We Buy Houses companies will answer any and all questions, because they know that it is a big decision to sell a property.
- Ask for a “We Buy Houses” review. Simply ask if they can provide the name and address of a property
they’ve recently closed, and check on Zillow to make sure it was sold. At Lotus Investment Properties, we’ve provided phone numbers of previous clients who were happy to brag about service they got. Don’t be afraid to ask for references!
- Ask who will be taking title. If they say some company in a country you’ve never heard of, you should probably run! That’s definitely not a legitimate “we buy houses” company.
- Ask for a proof of funds, or “POF”. If they cannot provide one, it’s probably not a legitimate we buy houses company. And if they don’t know what a Proof of Funds is you’d better find someone else.
- Ask what escrow company do you use?
- How many homes have you actually closed on in the last year where you physically take title? Any legitimate we buy houses company will have a few homes. Again, ask for addresses.
- Are you licensed? While it is not necessary for one to be licensed, you should know anyway.
- Have you ever had to cancel a contract? If so, why? Canceled contracts are bound to happen if a company has been in business long enough, but you should know why.
- Please describe any professional training, education, degrees, or certifications. Any legitimate we buy houses company is not going to say, “A late night infomercial.”
Above all, make sure you feel comfortable with your decision! Make sure not to sign anything that you don’t understand, or is vague. Any wording should be clear, concise, and easy to understand.
There are a lot of we buy houses companies, and there are a few that are good, ethical, and provide a needed service to others. Just make sure who you deal with is professional, experienced, and can provide proof of their ability to close.
All in all, make sure you use a reputable escrow company, make sure any existing mortgage is paid off thru escrow, and make sure you know who is going to hold title, and make sure you feel comfortable with them!
Make sure to ask them for actual reviews or client success stories!