Some cash homebuyers make their money by preying on desperate sellers. Here’s how they do it and how you can avoid it.
In our last video, we talked about hassle-free cash buyers and the role they play in our market. We’re continuing that discussion today by focusing on a common scenario that we’ve been seeing with these investors.
What happens is that an investor will send out a bunch of letters using tax records and extend a hassle-free cash offer to a homeowner. When a homeowner reaches out to one of these investors, it’s usually out of desperation.
Although their initial offer may appear pretty close to market value, after the inspection they’ll come back and say there is $100,000 worth of work or more and reduce their offer by that amount.
Here’s the problem: At that time, the buyer is in control. They’ve wasted your time, your home has been off the market, and you’re even more desperate to sell the home. Whether the report is accurate or not, you have to disclose it to anyone you work with in the future. Not only are you in a pinch financially, but you have an additional burden of responsibility. In many cases, sellers decide the hassle isn’t worth it and just decide to sell for that low price.
“Once you accept their initial offer, the buyer is now in control.”
I’ve seen this situation happen often, so it just enhances the fact that you need to work with someone you trust as a homebuyer. They’ll ensure that you don’t get stuck in a situation like this. If you currently find yourself stuck in a situation like this, reach out to me today and I’ll see what I can do to help.
If you have any other real estate questions for me, I’m happy to answer them. Just reach out via phone or email and I’ll get back to you soon. I’m never too busy to be a resource for you.