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Homeowner Beware of Investor Offers

By
Real Estate Agent with Value Added Service, 602-620-2699 SA5376460000

With low inventory, everyone is receiving offers from investors to purchase homes even when those home owners haven't listed their home(s) for sale.   Phone calls, text messages, and letters in the mail.  Sometimes it's a daily occurrence!

 

Due to our low inventory, a predatory practice has surfaced.   Investors are approaching home owners directly to purchase their homes and the contracts used aren't approved by the Department of Real Estate. 

 

Sellers are unwittingly going along with the sale without being protected during the transaction because the contracts don't cover language protecting them from a variety of pitfalls. 

 

The other aspect of these investor purchases, is the investor buying their home is also pre-selling their home before the sale closes to someone else, and all without the seller knowing.    Trying to cancel these contracts can be a nightmare! 

 

If you are a home seller, please contact a licensed real estate agent so you can understand every aspect of selling your home.  Don't fall prey to a saavy investor whose only interests is their pocketbook.  

 

If you have an elderly relative who is a home owner, reach out to them and explain this predatory practice.  Protect them from unknowingly selling their home for less than it's worth and to an investor who does not have their best interests at heart.  

 

Having seen this practice in action, it sickens me for those that don't know the consequences of not using a full time professional in a real estate sale.  

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Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

All I can say Is AMEN to this post time to put on the caution light, heads up...Endre

Aug 16, 2021 10:19 PM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Jan - unfortunately evil lurks in mysterious(as well as not-so-mysterious) ways.  This is evidenced in parts of real estate.  Awareness can often provide a clue.  

Aug 17, 2021 04:03 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Hi Jan... every listing I get under a certain price point gets at least three investor offers if not more... they look good only on the surface in many cases. To-date, not a single client of mine has been willing to sell their home to an investor.

Aug 17, 2021 04:35 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jan, this is awful that these "investors" would prey on the elderly.   Hope many read your post! 

Aug 17, 2021 05:36 AM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

This is a great warning for everyone - I hope someone reads your post and changes their plans as a result.

 

 

Aug 17, 2021 06:01 AM
Rocky Dickerson
Realty One Group - Las Vegas, NV
Superior Service!

Good morning Jan! Great point. Too many folks are being taken advantage of in this wild market.

Aug 17, 2021 08:04 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

I'm so glad to see this subject coming up.  It is vitally important to get the word out.

Aug 17, 2021 10:39 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Featured in the group:  BARTENDER, MAKE IT A DOUBLE.

Aug 17, 2021 10:41 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thank you Endre Barath, Jr. !  This was mentioned at my office meeting by the Real Estate Commissioner. These are very hard to unwind and it's really sad!  Thank you for reading and commenting!

 

So true Michael Jacobs and with every changing housing market, these things surface.  It's so sad when victims and their stories surface!

You're very lucky Nina Hollander, Broker not to have to deal with these.  We have a PLETHORA of investors.  The Phoenix housing market is ripe for these types of issues.  One of my clients sold to an investor and the home was immediately re-listed $50,000 higher, and this was a very low price point!

 

Fingers crossed Joan Cox . I'm going to share it on Linkedin!

Aug 17, 2021 02:55 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Agreed Kat Palmiotti !  It's so important that buyers receive all of the information to protect themselves!

Aug 17, 2021 04:43 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

You're right Rocky Dickerson ! And with every changing market, new scams emerge!

Aug 17, 2021 04:44 PM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Hi Jan,
I'm a little late to this party but this is an ongoing problem. Maybe with Z out of the flipping picture that will help.

Nov 14, 2021 07:59 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

That could make a difference Carol Williams !  Glad to see you back in the saddle!

Nov 14, 2021 09:04 AM