Here’s how you can identify and avoid predatory mail offers.
Today we want to talk about an issue we’ve been running into with clients more often: predatory home offers.
If you’re looking to sell your home, you may have received letters or postcards in the mail offering to buy your house. We probably receive five texts, three postcards, and two phone calls every week like this. We’ve been in the business a long time, so we’re used to it; however, a lot of our clients are understandably confused. Are these legitimate offers?
Keep in mind that these offers are not made by licensed professionals. This means they don’t have to follow any of the rules, regulations, or codes of ethics that real estate agents do. Their offers usually seem too good to be true: they’ll pay in cash, close quickly, and buy your home as is. It sounds nice, but it comes at a price. **These buyers typically offer to buy your property for 30 to 40% below market value. **
Not only that, but they don’t even buy your home like they say they will. Instead, their offers say they will sell or assign the contract to someone else. This means they buy your home for cheap only to put it back on the market at full value. They get an assignment fee for this, and it’s way more than a typical real estate commission. We’ve seen these people brag about what they’ve made of these deals, but you should ask yourself: What value are they bringing to the transaction?
Some people follow through with these shady deals because they’re a little embarrassed by the condition of their home. If you are in this boat, please reach out to a real estate professional like us. Our goal is to protect your equity, not set up a shady deal. No matter what your situation is, we can help you figure out what path is right for you.
If you have any questions about today’s topic, please give us a call or send us an email. We’d love to help you any way we can.