Seller beware! Fast cash offers are typically not worth the convenience and could be scam.

Have you noticed an increase in unsolicited offers to buy your home? Lots of homeowners have. The pitches might come by mail, text or phone call but the gist is always the same: sell your home fast for cash without hassle. What these offers don’t mention are the downsides.

The unsolicited offer is for less than what your home is worth—far less

At best, unsolicited offers are from those simply seeking profit, like home flippers and investors, or possibly from prospective buyers looking for a pocket listing in a place where home inventory is tight. At worst, they’re scams (more on this below).
When it comes to flippers and investors, the offer will certainly be for far less than your home is worth. Kiplinger reports that unsolicited offers are often for 25% to 35% of market value.

You could be left with debt

Even if the home sale is as fast as promised—sometimes within five days—accepting a lowball offer would mean forfeiting up to three-quarters of your home’s value. This might not even be enough to pay off the mortgage!
Your best path to maximizing your home selling price is to put it on the market. A real estate agent can help you determine a fair price and help navigate the sales transaction.

It could be a house buying scam

Unsolicited home offers may be a scam designed to get money or personal information that can be used to commit fraud. Beware of any offer that:

• Requires an upfront administration or service fee
• Asks for your bank account details
• Is made without the buyer seeing the property

Some scammers run a bait-and-switch where they initially say they’ll pay cash for your home, but instead have you sign your deed over to them as part of their process. Once they have the deed, they legally own the home.
Not all unsolicited offers are scams. However, even when they are legit, they’re not usually favorable to sellers.

When selling your home means buying a new one

If selling your home means you’ll be buying a new one, check out our wide range of home loans. Our mortgages are designed to be flexible and offer great rates for members.

 

All loans subject to approval. Rates, terms, and conditions are subject to change and may vary based on credit worthiness, qualifications, and collateral conditions. Federally Insured by NCUA