Houston “We Buy Houses” companies, are they legit?
You have probably seen their signs out on the street, a billboard, or even receiving unsolicited mail, texts, and phone calls from them. Professional Houston home buyers are finding new ways to advertise every day and are itching to talk to you. Being in a situation where you need to sell your Houston house can be stressful, you have so many “home buyers” reaching out to you and you do not know who to trust. Keep reading and we will tell you how to filter out the posers.
Are professional Houston house buyers legitimate?
Some, that is the answer to your question. Some of the buyers are legitimate buyers that operate on honesty and integrity, others are just people posing as “buyers” trying out the latest get rich quick scheme. Lucky for you, it is quite simple to differentiate a legit house buyer from one that is not. Here are the top ways to recognize a legit Houston house buyer:
Ask for proof of funds. A legit Houston house buyer generates their proof of funds instantly, if not within a couple of hours depending on their financial institution. We are always surprised when a seller calls us because their “buyer” is terminating their deal and when we go over the details we find out the seller never asked for proof of funds from them. The “buyer” was not a real buyer to begin with. Good Neighbor Home Buyers is happy to show proof of funds and provides one on every offer sent even if the seller does not request it. It is our job to provide peace of mind to a seller when buying their Houston house.
Knowledge about the entire transaction. When a legit Houston home buyer has their appointment with you, they will be able to answer all of your questions. Profesional Houston house buyers do 100s of transactions per year and have been through many diverse situations to be able to answer confidently and truthfully. A legit buyer can explain to you exactly how the process will go from start to finish with dependable timelines so that you know when to expect your cash. On the other hand, if your “buyer” is unsure about his answers, timelines, contract, that could very well be a red flag.
Using the Trec 1-4 Contract. This one we believe to be of the utmost importance when selling your house. While it is not mandatory, you as a seller should request it to protect yourself in the sale of your Houston house. The Trec 1-4 Contract is promulgated by the Texas Real Estate Commission(TREC) and is written to be fair to the buyer and the seller. One does not need to be a licensed real estate agent to use it and it is available for download online. A legit buyer will have zero problems using this contract, while others will try to push you to use their own contract which they have written to their advantage. You as the seller need to protect yourself from any unfair situation when selling your Houston house.
Reasonable Option Period. Section 23 of your contract. A legit home buyer makes it their business to buy houses in any condition for cash. That means they will not take very much time to assess the repairs necessary and close the deal. When executing a contract keep your option period short, this will protect you from wasting time with a buyer that will not close on the deal. Keep option periods to at the most 14 days, if a buyer can not assess repairs by then, chances are they will not be moving forward with the deal. Good Neighbor Home Buyers does not request more than 10 days option period at the most, but when the seller’s urgency is high, Good Neighbor will agree to an even shorter option period than that.
Reasonable Earnest Money. Section 5 of your Trec Contract. Actual Houston homebuyers will deposit a reasonable amount of earnest money to the title company which will be handling the transaction. Real buyers will never propose crazy earnest money amounts like $1, $5, $10. We have heard many horror stories of buyers locked into deals with a fake buyer that has a contract with an insignificant amount of earnest money. The earnest money protects you if a buyer terminates after the option period so having a significant amount deposited is in your best interest. We suggest at least $500 earnest money depending on the purchase price of the home.
Definite Close Date. Sec 9A of your Trec contract. There have been situations in the past when a seller enters a contract and the close date is blank. It is crucially important there is an agreed to close date or else the buyer has all control of when the deal is finalized and if they choose to, hold your property hostage until they feel like buying it. Once a contract is executed you lose the right to sell it to anyone else, that stated closing date protects you if the buyer does not perform.
Licensed Agents. Someone does not have to be a licensed real estate agent to buy your house, but if they are, that is a huge advantage. Licensed agents abide by a higher set of standards and ethics than someone who is not. A licensed agent will be knowledgeable, truthful, and transparent about the transaction to remain in accordance with the Texas Real Estate Commission. Every Good Neighbor Home Buyers agent that goes out on appointments is a licensed Texas real estate agent that can answer all of your questions.
Professionalism. Real Houston Home Buyers like Good Neighbor have a reputation to protect. They know that professionalism goes a long way in making transaction stress free for a seller. If your buyer is rude, hard to contact, easily offended, and not using professional forms or state-regulated documents, chances are the deal not go well. Good Neighbor Home Buyers will go above and beyond to meet all of your requirements with professionalism and education.
What makes Good Neighbor Home Buyers Legit?
Good Neighbor Home Buyer was and is founded on the belief that both parties leave the closing table with a smile. That is why we put so much focus on educating sellers on the process of selling their Houston house to us with ZERO cost to them. At Good Neighbor Home Buyers we:
Provide Proof of Funds
Educate you, the seller, about the transaction
Use professional forms and state-regulated documentation
Have reasonable option periods
Make a reasonable earnest money deposit
Give you a definite closing date
All licensed Texas real estate agents
Contact us today at 281-713-3255 or fill out the form below to receive a fair all cash offer for your Houston house. We can talk about your specific needs and figure out the best way to solve them.