In today’s real estate market, house buying companies seem to be a dime a dozen. But there can be a catch. If you want to sell your home quickly and with minimal hassle, it’s important to pick a reliable and trustworthy company that you can count on to get the deal done.
These are some questions we’ve been asked in the past, and good ones to ask anyone who advertises themselves as cash home buyers, along with our answers.
- Do you personally have the money to buy my house?
If we make you an offer, we do have the money to buy your house. If you’re doubtful about any potential buyer, you can ask for a “proof of funds” showing that the buyer actually has the money in an account in their own name and isn’t relying on an outside lender or investor to close the deal.
- Are you going to re-sell my house to someone else?
We do re-sell most of the houses we purchase, but we don’t promise to buy anything unless we can pay for it out of pocket, and we usually also have another one of our investors lined up before we sign the contract. We don’t want to waste your time and tie up your house while we try to find a buyer.
- Does your contract include an “inspection clause” that will allow you to walk away from the deal?
Sometimes we use an inspection clause, but we generally prefer to inspect before we sign a contract. Be careful, because some buyers will use a long inspection period to tie your house up for weeks or months while they try to flip it to another investor at a profit. If they can’t, they’ll use the inspection as an excuse to back out of the deal at the last minute, leaving you back where you started. Read the contract!
- Can you put down an earnest money deposit up front? If so, how much?
Yes. Typically around $1,000. The amount will be specified in our contract. The purpose of the deposit is to show you that we are committed to buying your home. You should be suspicious of any buyer who is not willing to put down a deposit. They may not actually have any money, or may not want to risk their money because they’re “fishing” by getting your house under contract and then trying to find an outside investor to flip it to.
- Does your contract include a closing date? If so, when will it be?
A quick closing is an important part of what we offer. Our contract will include a closing date, usually 2 weeks from the date of signing. Anything more than 2 weeks should be a red flag – cash buyers rarely need more than 1-2 weeks to close a deal. Some buyers will advertise that they can close in two weeks, but their contracts will specify a closing date 30-90 days in the future. This gives them time to find someone else to buy your house, while you wait and hope for the best. Read the contract before you sign it.
At Parrot, we take a lot of pride in our reliability – as direct cash home buyers, our job is to make the process of selling your home as simple and stress free as possible. We hope to have the opportunity to work with you.