Protect Yourself When Selling Your Home

Questions to Ask Any Home Buyer

Red Flags That Could Cost You

Understand What You’re Signing

In This Guide

Questions to Ask Any Home Buyer

Know what to ask so you can tell who’s trustworthy and who’s not.

Selling a house? Not all buyers are the same. Asking the right questions can help you spot red flags, understand what kind of deal you’re stepping into, and make sure the buyer can actually close.

Watch the quick video and download the question list to feel more confident and stay in control.

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Red Flags That Could Cost You

Learn how to spot 6 common warning signs when selling. These six red flags are some of the most common ways homeowners get taken advantage of.

1. “And/or Assign” on a Contract

A real estate contract typically has your name as the seller and the buyer’s name as the buyer. Watch out for the words “and/or assigns” after the buyer’s name.

These words mean this person may not intend to buy your house and is actually assigning it to someone else. These “ASSIGNORS” act as the middleman. They will be looking to assign your contract to a real buyer and make a profit in the process.

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2. No Proof of Funds

A Proof of Funds document is verification that a person has money in the bank to purchase your house. Someone who is only intending to ASSIGN your contract does not have the money to actually buy your house.

Some may even flash you a fake letter that looks legitimate! A real buyer should be able to show a proof of funds document from a local, reputable financial institution.

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3. Lowers Price After Contract

Beware of a buyer offering a price too good to be true. ASSIGNORS will tell you whatever price you want just to get you under contract.

This prevents you from selling your house to anyone else. Later, they will try to negotiate a lower amount with you just as you’re ready to move. You don’t have to settle – you have options.

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4. No Earnest Money Deposit

It is standard real estate practice for a buyer to put down $1,000-$5,000 earnest money deposit to show they are serious about buying your house. Beware of a buyer who says this deposit is not required because it’s a fast deal or low purchase price.

This is a red flag that they may be an ASSIGNOR that does not have the money to purchase your house and may not follow through on the contract.

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5. Multiple Walk-Throughs

A true homebuyer will only need to walk your property one time to gather all the information they need. Watch out for many people trudging through your home – often introduced as inspectors or contractors.

This is a red flag that your “buyer” does not have the money to actually buy your home and is showing your home to other buyers to ASSIGN your contract.

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6. Pushes Out Closing Date

If a buyer keeps pushing out the closing date you agreed to, this may be a sign that they need more time to assign your contract and find a buyer. An ASSIGNOR will agree to whatever closing date you want, but they cannot close until they find a buyer.

This tactic is unfair because they promised you this date, and you are depending on it to move.

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Want these red flags at your fingertips?

Download the free one-page guide to have on hand when meeting with any buyer.

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