“We buy houses for cash!” You’ve probably seen the signs, postcards and texts. Some cash buyers are reputable local investors. Others make a low offer, tie up your home and renegotiate at the last minute. Here’s how to tell a fair cash offer from a bad one when selling your Colorado home.
1. Know your home’s real value first
Before you look at any offer, get an independent estimate of what your home could sell for on the open market. Without that number, you can’t tell whether a cash offer is fair. Request a free home valuation.
2. Ask for proof of funds
A real cash buyer can show a recent bank statement or letter proving they have the money. If they can’t, they may be planning to find another buyer before closing.
3. Watch out for assignment and “wholesaling”
Some buyers sign a contract with you and then sell (assign) that contract to another investor for a fee, without ever buying your house. That’s not always illegal, but you should know who the real buyer is. Read the contract for words like “and/or assigns.”
4. Be careful with long inspection periods
A lowball tactic is to offer a strong price, then use a long inspection period to “find problems” and cut the price right before closing. Ask for a short inspection period and a clear explanation of how the price was calculated.
5. Look at earnest money
A serious buyer puts down meaningful earnest money with a title company. A very small deposit makes it easy for the buyer to walk away.
6. Close with a reputable Colorado title company
Insist that closing happens at an established title company, which holds funds and makes sure the sale is recorded properly. Never sign a deed outside of closing or accept unusual payment arrangements.
7. Compare more than one offer, and compare against listing
One offer tells you very little. Several offers, side by side with an estimate of what the home would net on the open market, tell you a lot.
8. Red flags
- Pressure to sign today
- Refusal to put terms in writing or show proof of funds
- Requests for upfront fees
- A buyer who won’t say who will actually close on the house
- Offers made sight unseen that drop sharply after a walk-through
Get offers you can trust
We bring you cash offers from vetted local investors and show you, side by side, what the home could sell for if listed. You choose. Request a cash offer, read cash offer vs. listing, or call us at (720) 403-2940.