You have an Albany NY or Saratoga NY area property you need to sell fast and you are evaluating your options. Perhaps you are facing a financial rough patch and cannot afford the mortgage payments on your home anymore. Now you risk losing your home to foreclosure. Or maybe, you’re going through a divorce and need to sell fast to relieve the stress of the situation. Or, a realtor might tell you that your house needs thousands in repairs in order to sell via the traditional route and you can’t afford to make them.
You have evaluated your options and looked at all the hidden costs of selling a home in New York. As a result, you decided that a cash buyer who can close quickly and pay all closing costs and fees is the best option for your particular situation. So you search for companies that buy houses in any condition, for cash, quickly and find there are many companies in Albany and Saratoga who claim to buy homes as is for cash. Are all those companies the same?
The truth is there is one critical pitfall that you absolutely want to avoid when selling your home for cash in Albany or Saratoga.
Critical pitfall you should avoid
Many companies that claim to be “cash” buyers are really nothing more than middlemen. If you’re not careful, they can waste your time and cost you thousands of dollars. They can even cost you your home!
Here’s what we mean. A true cash buyer is a company that wants to buy your home and has the cash available to close on the property in no more than 2-3 weeks (that’s how long it takes the title company to get ready for closing assuming there are no issues with the title).
Some companies that claim to be cash buyers don’t have the cash available and never intend to purchase your property at all. Instead, they want to tie up your property in a purchase contract and then find a true buyer to sell it to for a higher price and pocketing the difference. Oftentimes, they make $10,000-20,000+ when selling your home, and for that reason they will not offer you the best price.
But how can you know if the company you’re selling your home to is a true cash buyer? There are some telltale signs.
Assignment clause in the contract
This is especially dangerous if you’re facing a time crunch like facing foreclosure. A middleman can tie up your property for 30-45 days or longer. That will prevent you from selling it to anyone else during that time. If they can’t find a buyer to purchase it from them, they can terminate the contract. That would leave you hanging with little time to find alternative buyers.
Therefore, if the purchase offer has an assignment clause in it (“and/or assigns” following the Buyer’s name), be very careful because you’re not dealing with a bona fide cash buyer.
Longer closing timeline
Cash transactions don’t require loan approval and as such don’t take very long. The title company requires 2 weeks to get the title work completed and ready for closing.
Any genuine cash buyer doesn’t need longer than 3 weeks to close on your property. If they ask you for 30-45 days to close, they need that time to find the real buyer. They’re a middleman, not a true cash buyer.
Missing proof of funds
Before you agree to sell your Albany or Saratoga area house for cash, you should always ask your buyer for proof of funds. Ask them to show you a bank statement in their name with sufficient funds to complete the purchase or a bank statement from an individual committed to providing them the funds to purchase your property.
If they dodge your request or show you an approval letter from a bank, be very careful. It’s highly likely they don’t have the cash available.
The Capital Region House Buyers way
In contrast, Capital Region House Buyers is a true cash buyer. We are investors who will purchase your property in the Albany or Saratoga area with our own funds. We can close as soon as the title company gives us the green light to proceed and our contracts do not include assignment clauses. Call us now at 518-362-2600 now for a no obligation offer, or complete the form on our home page with a good number or email and we will be in touch.