Hi Everyone. This is part of my series on property buyer scams.
Part Two –Today I will be discussing the current scams that I have come across within the property cash buyer industry.
One that has been going on for a really long time is the high offer and then cutting it at the last moment. Now what actually happens is that you ring up a company you see advertised, or an individual who wants to buy your property for cash, they will then come and have a look at the property and they will make you a really good offer. Let’s say, for example, that you have a property that is marketed with an estate agent and the property is on the market for a selling price of £100,000.
The cash buyer will come in with a great offer, of say £90,000, and they will give you some examples on how you save with estate agent fees and solicitor’s fees and from the seller’s perspective, it looks like a pretty good deal.
The Liar Buyers then hook you in with an option agreement.
The buyer will then get you to sign what is called an option agreement form, to make the seller believe that it is all going ahead as stated. Once it gets right to the end of the purchase, the buyer will then find some reason to reduce the offer, such as a problem with the property that should have been mentioned in the beginning.
They will then try to knock you down to a lower price. This is an old, real and dirty trick that I really dislike.
I Explain How I Value The Properties That I Buy.
What I want all my clients to be mindful of, is that for anybody buying your property (such as myself), there’s got to be some profit margin.
I calculate my offers by looking at what we could sell the property for on the open market, once we have made any changes, refurbishments and upgrades in order to sell.
If you are being offered between 90% of your sale price, by a cash buyer, it is highly unlikely that you would receive this figure upon sale. If you are made an offer, which you fear could be a scam, but you are unsure, then how do you actually get around this, as it is a difficult situation.
If it is a genuine cash buyer, they should have the services in place to make the exchange between 1 or 2 weeks. So what I would say to your cash buyer is:
“Fine, I will accept your offer but on the condition that I receive the exchange, on contract with a solicitor, stating a set date for the exchange”
Over the next few days I will be making some more videos, sharing my insights and top tips on scams, things to look out for, and things to avoid.