Knock, Knock! Whatever You Do, Don’t Answer the 'Door!'

Real Estate Agent with | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 228209

Knock, Knock! Whatever You Do, Don’t Answer the 'Door!'


I actually wrote this article last week (and didn't post it) after hearing an ad on the radio for a company who offers to purchase your home from you, allowing you to then find your next dream home and then will sell your home after you move and after repairs are made. I attended a meeting yesterday where I learned more about this too-good-to-be-true business model I realized that this business model is not only a concern of mine but, many others.


Does this sound too good to be true to you? Well, that’s because it is!

This is a business - think about it: 

Knock Knock!


You request $________ for your home and are approached by one of THEIR representatives to confirm that your home is worth what you think it is. It is THEIR objective to purchase your home from you for as little as possible. So, their numbers will not match a trained real estate professional. Yes, they’ll help you purchase your new home, while also garnering the commission from the purchase.


Then, they sell the home that they purchased from you. Do you think they’re going to sell it for what they purchased it for from you? OF COURSE NOT! They are in this to MAKE MONEY, not to LOSE money. So, where do they make their profit? From YOU. 


This is a real estate service that is run much like an auction house - buy low, sell high. At the end of the day, YOU, as the seller are the ones who WILL leave money on the table.


There is far more to selling your home than just exchanging cash. There are a multitude of ways to garner top dollar for your home. This is not one of them!


You as a buyer:

Wise Charlotte Home Sellers


When you purchase a home from them, they will claim to be able to win bidding wars because their "Offer is strong since we are buying with cash." Well, cash is not always king and oftentimes when a seller sees a cash Offer, their emotional attachment to their home comes into play. 


Wise sellers view savvy buyers as those who finance because they know that mortgage money is incredibly cheap and it's not a smart financial move to pay cash for real estate purchases. Typically when sellers receive a cash Offer, they think it's an investor - someone who will be renting out their homes. Remember that emotional attachment comment? Well, sellers very often want someone to love their home as they have. Cash buyers don't give them a sense that anyone will be caring for their home and be good neighbors to their dear neighbors. 


Wise sellers often view cash buyers as inexperienced and unpredictable. Why would they pay cash when they could finance? Is there something wrong with their credit? What if they change their minds?


Bottom line - sellers often prefer a savvy buyer who has gone through the underwriting process and is going to love their home as they have. 


You as a seller:


Points that are in the fine print that you simply MUST read on the Contract provided:


  • Take your money and RUN!Their fees are higher than my fees, which are full-price for full-service
  • They pay THEIR contractors to repair items found on their inspection and declare that their average repair costs are $3,000. Remember, they are paying THEIR contractors, obviously premium charges because it’s rare to have a $3K inspection report. Not to mention, in NC, as a seller, you are selling with an as-is Contract and are not even REQUIRED to make repairs with a standard sale.
  • PLEASE consult a full-time real estate agent (even if it’s not me!) before signing anything. I
  • In NC, we have standard NC BAR forms/documents for our consumer to complete. This company provides their own - written FOR them (not you) and favoring them, NOT YOU. BIG RED FLAG!


What’s in it for me? Preserving the integrity of my profession by not having sellers ‘gypped’ by a business that’s in it only to take your money!


© Debe Maxwell | The Maxwell House Group | | Knock, Knock! Whatever You Do, Don’t Answer the 'Door!'



Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Karen Butler 03/13/2018 08:00 AM
Home Selling
North Carolina Mecklenburg County Charlotte
North Carolina Real Estate
It's all about them (ThemThem)
Charlotte North Carolina Area
Advice for Sellers
charlotte home seller advice
home seller tips charlotte nc

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Fred Griffin
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

      This is similar to real estate brokers who promise to "buy your house if we can't sell it in X number of days".   The fine print will read something like, "we will pay you 80% of the quick-sale appraisal price; said appraiser to be hired by the real estate broker.  If said appraisal is not sufficient to pay off existing mortgages and liens, this offer is null and void."  

Mar 11, 2018 11:41 AM #58
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Debe- that old line "if it sounds too good to be true..." has been around for a long time for a very good's so true. The smartest thing that any seller or buyer can do to protect their investment is to make sure that they work with a local professional agent!

Mar 11, 2018 05:10 PM #59
Brigita McKelvie, Associate Broker
Cindy Stys Equestrian and Country Properties, Ltd. - Lehigh Valley, PA
The Broker with horse sense and no horsing around

Good morning, Debe!

Excellent post!  To me, it is a red flag if is it "too good to be true".  We have a few companies like this.  The one Seller I had interviewed with happened to mention he was also going to speak with one of these agents.  I told him to make sure he reads the small print before signing.  He must have read the small print because he listed with me.  


Mar 12, 2018 06:18 AM #60
Mike Cooper
Cornerstone Business Group Inc - Winchester, VA
Your Winchester, VA Real Estate Sales Pro

Debe, you are spot on. The old "if it sounds to good to be true" line nearly always applies. Seller, beware!

Mar 12, 2018 06:08 PM #61
Corey Vandenberg
Platinum Home Mortgage - Lafayette, IN

Great article! “Wholesalers” they often call themselves. That is an adequate description for a factory selling a product to someone who then resells it again to a new and wider market. But in this case, there is a clear winner (“the wholesaler”) and clear losers (“the seller” and the end “buyer”) in the same market! They are losing because they have lost a better profit for the seller and a better deal for the buyer. Oftentimes, they simply remarket this home and resell for more within a very short time, at times without actually buying it with the “cash” that they claim to have. Many times they are relying on someone else’s money to even do so (which means that they also want a cut). It’s more and more obvious that the seller would be in better hands with a professional real estate agent and a professional lender to help the buyer than to take a fast bad deal...

Mar 12, 2018 06:14 PM #62
Janice Hope Zaltman Realtor,LEED AP
United Realty Group - Fort Lauderdale, FL

Hi Debe Maxwell, CRS Interesting perspective on cash buyers. I normally work with cash buyers and receive high cash offers for my listings.  Cash is king here. Even with the best underwriter, you never know if the deal will close and have experienced that many times unfortunately. 

Mar 12, 2018 06:51 PM #63
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Debe,

Pretty funny!

Mar 12, 2018 07:02 PM #64
Carolyn Roland-Historic Homes For Sale In Delaware and S. Chester County PA
Patterson-Schwartz Real Estate - Wilmington, DE
Carolyn Roland, GRI, CRS

These people must be getting pretty hungry in my area. In the last couple of weeks I have received at my home 2 post cards offering me cash for my property. I can see what their game is, but they must plan on making money off of some poor saps.

Mar 12, 2018 08:32 PM #65
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
your real estate writer

Any time something sounds too good to be true, look out! More than likely, it isn't true.

This is the first time I've heard that sellers shy away from cash buyers. But then, back when I was a broker, money wasn't as cheap as it is today. Also - in this area people were always certain that "Some rich Californian" would show up to buy their house. They expected those folks to be rolling in cash.

It was true that we had a lot of those buyers, and many did have cash because they had sold a home in California that they had owned for quite some time. Add to that the fact that our prices were FAR lower here.

Mar 12, 2018 09:15 PM #66
Ken Burrell
CENTURY 21 Gavish Real Estate - Las Vegas, NV

Dear Debe,

The article was of great value and something to share with clients and their friends. What a great marketing piece, love it. Thank you.

I think what we can take from this is, efficiently presenting to a potential client, like FSBO's, expired listings, referrals, and anyone else that may be interested in a quick cash deal. Real estate agents sell on the retail side of real estate, and then there is the investor/whole side of real estate. In most cases, we can put more money in their pocket even after commissions. We typically expose their house to a better pool of buyers. Buyers that are ready, willing, and able to pay retail/appraisal value, if not, more.

Mar 12, 2018 09:47 PM #67
Susan McCall, Everyone needs a home
Compass Realty Solutions, Portland, OR & Vancouver, WA - Portland, OR
Quickly, professionally and with a little fun!

Yup who wants to pay one of those money grubbing realtors all that money anyway?  Think of the money that will be saved on this sale.  And it IS a cash offer so what could go wrong?  

Mar 12, 2018 11:10 PM #68
Eva B. Liland with Century 21 Doug Anderson
Century 21 Doug Anderson - Lancaster, CA
Glad to be of Service

"if it sounds too good to be true..."it usually is. I see commercials on late night TV all the time, too sad really.

Mar 13, 2018 05:08 AM #69
Corinne Guest, Managing Broker
Barrington Realty Company - Barrington, IL
The Best in Buyer Representation

And these kinds of companies also sell leads to agents. I don't answer my door to anyone I don't know. We have a no solicition sticker and I point them to it through the side window. People need to be extremely careful these days.

Mar 13, 2018 05:28 AM #70
Janice Ruiz

good article thanks for the post

Mar 13, 2018 05:49 AM #71
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

The old adage about if it sounds too good to be true, it probably isn't still holds true.

Mar 13, 2018 07:47 AM #72
M.C. Dwyer
Century 21 Showcase REALTORs - Felton, CA
Santa Cruz Mountains Property Specialist

Frightening what some people will fall for.    I've even seen listing agents claim they'll buy your home if it doesn't sell.   Sure they will, but at what price?    People should get second opinions about anything that seems suspect or out of the ordinary..

Mar 13, 2018 08:28 AM #73
Nick & Trudy Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtors, Philly Main Line

Excellent post, have not seen this model here yet. Good shout out to consumers to beware.

Mar 13, 2018 11:44 AM #74
JL Boney, III
Coldwell Banker - Columbia, SC
Columbia, SC Real Estate

There is one company around here that has tried this, but it has not really caught on that well. We do however have several of the "we buy houses" companies that toss bandit signs all over the city.

Mar 13, 2018 12:36 PM #75
John Wiley
Right Move Real Estate Group- EXP Realty - Fort Myers, FL
Lee County, FL Real Estate GRI, SRES,GREEN,PSA

Debe, this is a great value added post that is a heads up to the consumer and the agent.

I appreciate you taking the time to help us understand some of the less than best that is working in the market.


Mar 15, 2018 08:40 AM #76
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Area Real Estate

Yep, these guys are all over the place with all kinds of bright ideas. Until the consumer goes thru one of their 'plans' do they realize how much equity/money it is really costing them.

Great post.

Mar 15, 2018 11:48 AM #77
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Debe Maxwell, CRS

Charlotte Homes for Sale - Charlotte Neighborhoods
Have questions about Charlotte? How may we help?
Spam prevention

Additional Information