If you’ve been driving around Connecticut, chances are you’ve seen some billboards or bandit signs advertising companies that buy houses. Maybe you received a postcard or letter in the mail from one of them.
Often times they say things like “We Buy Connecticut Houses!” or “Cash For Your House”.
How Credible Are These “We Buy Houses in Connecticut Companies”?
How can you tell if the local companies that buy houses are honest and trustworthy? It can be a little tricky at first, but we’ll guide you through some important things to look for before deciding to work with them.
At first glance they all seem to be the same. They say they are offering you cash for your house. They say they are fast, close in a few days without a realtor and they will buy your house in any condition. We promote the same things here at Next Door Properties.
So what separates the good cash home buyers from the bad ones?
Buying and selling houses is an important job that can help communities and people who want to sell their houses. Most house buyers are good and do their work well, making neighborhoods better one property at a time.
However, there are a few people who are not so great. They care more about making money than helping their clients. They might seem nice on the surface, but could trick you when it comes to signing contracts and making deals. We want to help you avoid these “shady house buyers” and find honest and fair companies that can buy your house for a good price and close the deal when you’re ready.
But let’s not focus on the negative things just yet. First, let’s talk about what the best house flippers do to make things right.
What Reputable Middletown House Buyers Are Doing
- Helping sellers get rid of a burdensome property without the hassle of having to list it with a broker and wait months and month for a sale.
- Helping people by giving them the money they need quickly. Sometimes, people need money for unexpected medical expenses, relocating across country for a job, deployment, or to move closer to their family. We can make that happen in just a few days, and it brings them peace of mind.
- When we buy houses, we create jobs for many people in our community. We hire plumbers, contractors, electricians, brokers, and many others. In fact, around 86 people are involved in a typical house sale from start to finish. So, our work helps create real jobs for people in Connecticut.
- Supporting our local economy. We by buying materials from local lumberyards, home improvement and hardware stores. Most of the materials are made right here in the USA. This supports jobs in timber mills, factories, supply shops, distribution centers, and more. Our investments help the local economy and the US economy grow.
- When we improve a house, we’re not just making it better, but we’re also increasing the value of the whole neighborhood. We often fix up abandoned houses that are in bad repair and make them beautiful and affordable homes for new families. This makes our [marekt_state] community stronger and a happier place to live.
- Lastly, we make the economy stronger. The houses we buy typically get appraised a lot lower because of their poor condition. This means there is less tax revenue going to the community. Local schools, police, and firefighters don’t have the budgets they need to provide quality service. When we fix up a property and a new buyer takes over, their taxes are based on the improved value. These taxes go towards those important things like schools, fire departments, police stations, libraries, and roads. So, by improving neighborhoods, we’re also helping to improve the things that make our community great.
All around these are all good thing? You’ll be hard pressed to find a realtor doing any of this kind of work.
Some people think that flipping houses is an easy way to make lots of money fast. They might have seen exciting shows on TV that make it seem thrilling, but the truth is, its a lot of hard work. It’s not as glamorous as those shows make it out to be.
Most of what we do involves working with many different people and making sure everything is happening on schedule. We have to keep track of many things and make sure they all fit together. We always run the risk of going over budget, barely making enough to keep our business going or worse we lose money when we try to sell.
- Sometimes subcontractors are booked up.
- There are delays in getting permits.
- You find bigger problems than you expected. Like foundation damage or black mold
- Bad weather
- You can’t find what you planned for and you have to buy more expensive materials
- The market turns and we can’t get the price we though we would
- The house sits on the market costing money for each month it isn’t sold
Now, let’s get back to how you can use this information to figure out if someone is a trustworthy investor or if they’re just trying to trick you with a house buying scam.
Discover the Signs of a Trustworthy Local Homebuyer: Are You in Good Hands?
When you talk with a local house buyer to potentially buy your house… ask them some of the questions below to ensure they’re reputable, knowledgeable, and honest.
Ask open-ended questions like:
- How do you help the people you work with?
- What kinds of things do you do to help your clients?
- Could you provide more details about the services you offer?
- Can you show me your business is registered in Connecticut
- What makes you feel really proud about your business?
- How would you explain your beliefs and values when it comes to investing?
- How can I be sure that you’ll follow through and buy my house when you promise to?
Second, look for tell tale signs of tactics that those few shady operators tend to use. This is just a few of the tactics that scammers will use to get your money. Don’t be fooled by people who say they are local cash home buyers.
- “Kitchen table closings” – Be careful if a cash home buyer wants to complete the sale of your house at your kitchen table, at your house or someplace that isn’t professional. You should only be signing at a closing attorney or title company’s office. Reputable house buying services usually do the closing at a neutral 3rd party location, like a title company. This way, everything is done correctly and fairly and lawyers or agents are involved in the process.
- Pressuring you into a fast closing – Watch out if a house buyer tries to pressure you into making a quick decision and selling your house right away. Advertising a fast close is fine but if their offer is only available for 24 hours that is another warning sign. Trustworthy house buying services provide an offer that will be available for at least 2-7 days, giving you enough time to think it over, or talk to a lawyer. The reason for setting a deadline is that the housing market can change, and prices may vary based on recent sales in the area. Additionally, reputable buyers like us at Next Door Properties purchase multiple houses each month, and when we make an offer, we assure you that the cash to buy your house is ready. We reserve that cash for several days so we can close the deal according to your schedule. If you decide not to accept the offer, we will allocate those funds to help another seller with their home sale.
- Requests for upfront fees – Be wary of any cash home buyer who demands upfront fees or asks for payment before the transaction is complete. Reputable buyers typically cover the closing costs and fees associated with the purchase. There shouldn’t be any reason they would be asking you for cash.
- Unprofessional communication – Poor communication, including excessive spelling and grammar errors, or unprofessional phone conversations, can be red flags. Legitimate businesses usually maintain a professional image. They invest time and money designing a brand and developing a professional reputation that they don’t want to ruin. If you are working with someone that can’t show that level of professionalism you might be working with an amateur or worse a scammer.
- Lack of proper credentials – Cash money buying is a business and to do business in Connecticut people need to be registered as a business and pay taxes. Scammers often lack proper licensing, registration, or accreditation. Legitimate home buyers should have the necessary credentials and be willing to provide proof if asked.
- Inconsistent or unclear terms – Scammers may present vague or confusing terms, deliberately keeping important details unclear. Legitimate buyers will provide clear and transparent information about the process, including any legal requirements. If you ask questions about the terms or process and they dismiss it telling you not to worry about it, you should really start to worry about it.
- Lack of local presence – Some scammers pretend to be local cash home buyers but operate from a different state or worse a different country. Verify their physical address and check if they have a local presence, such as a physical office or local phone number. But that might not be enough. Ask them for their Connecticut business registration. ask to meet with them face to face.
Most scammers are looking for a to get in and out, and are not going to go in-depth with you. If they are only going to do the deal over the phone and won’t come out to meet you or to look at your property that is another warning sign you might be dealing with a scammer.
Chances are good that they’ll find excuses to get off the phone and move on to someone who doesn’t ask too many questions.
True investors who run honest and ethical Connecticut house buying services, however, are building long-term businesses based on relationships and community development.
So when you’re looking at one of the “we buy houses in Connecticut companies“… never be afraid to ask questions!