Things to consider before accepting quick-cash home offers

DENVER -- Denver's housing market may fluctuate, but experts say that with approximately 8,000 homes currently for sale, many are looking to profit by offering fast cash to some homeowners.

Some offers come by mail, others through text messages and phone calls. Real estate expert Luca Baud of Madison & Company Properties told the FOX31 Problem Solvers that sellers are experiencing unprecedented competition. He said some businesses approach homeowners in hopes of flipping property fast and advises homeowners to "consult with your real estate advocate to see what you can get on the open market instead of selling to a wholesaler or one of those numbers you get on a flyer on a door."

Baud warns that buyers who use high-pressure tactics are hoping to talk homeowners out of leaving their property on the market until its value can increase.

"A lot of them are wholesalers -- are cash investors who are trying to buy the home at a reduced significant purchase price," said Baud.

Industry experts say those considering fast-cash offers may benefit if their home isn't expected to appreciate in the near future, but in other cases, a quick sell may leave the homeowner with less money available to utilize for a down payment on a new home.

James Everetts of Fairway Independent Mortgage Corporation tells Fox 31 that these days, there are many options for those looking to buy a home, even if they fall into non-traditional categories regarding income, credit standing and type of down payment they are able to make. He says the most important thing any prospective homeowner should do is research their own financial qualifications for obtaining a mortgage loan from an experienced professional.

"There's a lot of misconception for people looking into homes as far as how much money they may need out of pocket," Everetts said.

He added that this type of research should be done before selling your home or looking at a prospective property so you can accurately calculate how much money will be available for a  down payment.  Anyone considering any type of offer should get a professional estimate of their home's value from a qualified real estate agent or appraiser.

AlertMe