Lately, I have been getting quite a few calls from people asking me about cash offers they are receiving in the mail, by text or on the phone for their home. Just yesterday, I received three cash offers in my mailbox for a piece of property that I personally own.
The offers are exciting to get, and I find that they usually offer pretty close to the fair market value in order to get my attention. In addition, the offers state they will pay you all cash regardless of the condition of your home. Sound familiar? Are these offers really legitimate offers and how can you tell if they are or are not?
Let me start off by saying that I am not trying to bash cash offers buyers, but most mail-in, text or phone cash offers are not truly sincere offers to purchase.
In other words, they are typically fishing expeditions by companies of all sizes to get sales listings or options to buy your property with little or no commitment from them. How can you tell if the cash offer you receive is a serious, sincere, real cash offer or just a mere waste of your precious time?
First, let me explain that most sincere buyers will tour or inspect your property prior to making a cash offer. Companies that make cash offers on your property sight unseen are oftentimes insincere. They protect themselves by asking you to sign a sales contract full of contingency clauses allowing them to recover their earnest money and exit the contract with little or no loss.
The sales contracts typically ask for a 30-day or longer inspection period. The inspection period requested is most often used to give the buyer time to market or flip your property to another buyer.
The inspection period, in addition, often gives the buyer the right to physically inspect your property inside and out, noting clearly that the buyer may terminate the contract if “anything” is found unsatisfactory or repairs or updating is needed. They can offer you a much lower price based on their findings. Bottom line, in many cases, the seller is usually left without a buyer.
So, what’s the harm in signing a sales contract from a mail, text or phone buyer who hasn’t even seen the property? You could end up keeping your home off of the sales market for a month or more, losing potential real buyers.
Unfortunately, if you have taken a mail order cash offer seriously, you may proceed to purchase another home before closing takes place. Attempting to purchase another home without a sincere buyer on your home can and does create a negative chain reaction to others.
Carefully read over any offers to purchase you may have received and understand clearly what the offer actually is before signing. If you are still uncertain of the validity of the offer, ask a local real estate attorney to look over it for you.
When you get that next cash offer in the mail, by text or phone, look closely at the contact information or who you are dealing with. Does the buyer appear reliable, can you find information about their company online? Have they actually purchased other properties in your area?
If you are presented with any written cash offer for your property, look closely at any and all contingency clauses before making any decisions.
Have you had cash offers flooding your mailbox? Do you think all cash offers by mail, text or phone are insincere or should some be taken seriously? Have you got a story to share about an all cash offer you’ve accepted or rejected?