Comments on: Are those "we buy houses for cash" scams?

By: acermill

acermill — Tue, 05 Feb 2008 04:03:40 +0000

They're not scams, as such. However, they WILL offer you only about 65-70% of what you might get in a conventional sale. These businesses are designed to work with desperate sellers, and the prices they offer reflect that.
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By: Cyrus

Cyrus — Tue, 05 Feb 2008 02:57:45 +0000

Most of them are not scams, but you do have to be careful. Mostly, they are looking for equity. So no, even most of their signs say they will buy any house at any price, it's not true. For example, if you owe 200K on your house and it can only sell in today's market for 180K then most likely you'll be out of luck.

However, if someone is in that position they can often save their home but it might mean a decrease in lifestyle. For example, you convert other rooms or space into livable space and rent out the bedrooms. Or even move into an apartment and rent the entire home.

Be careful about signing anything that you don't fully understand and most of all, listen to your gut feeling when dealing with any investors. Good ones will explain exactly what they do and how much money they need to make in order to do a deal with you.
References :
http://explosive-cash-flow.com

By: msdarkness

msdarkness — Tue, 05 Feb 2008 02:56:51 +0000

yes and no, i you call one of those we buy houses for cash, they know that it's because you are desperate to sell. so they will do what ever they can to get you to sell them your home really cheap and then they make a few upgrades and sell for lots more. so be very careful. good luck
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By: Rino M

Rino M — Tue, 05 Feb 2008 02:40:31 +0000

That's a really bad scam! Do not trust these commercials because they will buy your home for a much lower price than what your home is worth, and they sell it back for double the price. Sometimes they even make you sign the contract and then they declare the company has run into bankruptcy, and you won't even see a cent!
References :
http://www.outrenthome.com

By: clarkzkent

clarkzkent — Tue, 05 Feb 2008 02:36:48 +0000

Many are franchises, i.e. http://www.webuyuglyhouses.com, you will need to contact one of the franchisees that will offer you a decent deal. Keep in mind, they are out to purchase the home for under its appraised value, so you will not get what the home is worth, however it is most like better than BK.

In short, be careful, many are not scams and could benefit your situation; however you could deal with someone that does not have your best interest in mind. Always contact a real estate attorney in dealing in matters such as these.
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By: nolainkansas

nolainkansas — Tue, 05 Feb 2008 02:35:05 +0000

Well, they will offer less than they think they can remodel and sell it for.
what they are looking for is those who are desperate to get out from under either a bad mortgages or houses with problems.
They have the contacts with contractors and subs to do the remodels and the finances to pay for same. Quite often are their own realtor and They make their money on the resale.
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By: tootallhiatt

tootallhiatt — Tue, 05 Feb 2008 02:34:58 +0000

This is a question I get a lot. The simple answer is "seller beware". Just like anything else when it comes to selling to someone, you need to have yourself covered. Get a Real Estate agent or Attorney to assist you (even if just for an opinion, free from most agents).
There are hundreds of "investors" out there that are perfectly legitimate business people and of course there are a few bad seeds. DO YOUR HOMEWORK.
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By: Steve

Steve — Tue, 05 Feb 2008 02:34:26 +0000

I believe that most of them are scams; check them out with the BBB (Better Business Bureau) before doing anything with them.
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By: lilpurpledog

lilpurpledog — Tue, 05 Feb 2008 02:33:30 +0000

They know you want your house gone and give you the lowest bid possible…

They count on people wanting out of their house.

I personally would not use it.
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