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

By
Real Estate Agent with www.AtHomesCharlotte.com | 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 | CharlotteBroker@icloud.com | Knock, Knock! Whatever You Do, Don’t Answer the 'Door!'

 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Karen Butler 03/13/2018 08:00 AM
  2. Tony and Suzanne Marriott, Associate Brokers 04/09/2018 05:15 AM
Topic:
Home Selling
Location:
North Carolina Mecklenburg County Charlotte
Groups:
North Carolina Real Estate
It's all about them (ThemThem)
Charlotte North Carolina Area
Advice for Sellers
Bananatude
Tags:
charlotte home seller advice
home seller tips charlotte nc

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Rainmaker
1,353,855
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
Rainer
15,390
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
Rainmaker
192,767
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
Rainer
401,989
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
Rainmaker
525,288
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
Rainmaker
1,379,585
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
Rainer
9,515
Ken Burrell
CENTURY 21 Gavish Real Estate - Las Vegas, NV
DILIGENT AGGRESIVE RESULTS

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
Rainmaker
217,802
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
Rainmaker
115,410
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
Rainmaker
927,153
Corinne Guest, Managing Broker
Barrington Realty Company - Barrington, IL
Barrington, a Luxury, Country Suburban Lifestyle.

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
Anonymous
Janice Ruiz

good article thanks for the post

Mar 13, 2018 05:49 AM #71
Rainmaker
4,200,667
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
Rainmaker
315,065
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
Rainmaker
653,969
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
Rainmaker
543,608
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
Rainmaker
336,410
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.

Consumer-Beware!

Mar 15, 2018 08:40 AM #76
Rainmaker
1,362,740
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
Rainmaker
3,386,805
Dorie Dillard
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Debe Maxwell, CRS ,

I'm so glad that Jennifer Mackay re-blogged this post! There are so many scams out there and many who because of circumstances are ripe for hearing something too good to be true and jump at it! Its always heart breaking to see these kind of businesses taking advantage of people!

Apr 09, 2018 05:21 AM #78
Ambassador
2,481,734
Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Thanks for letting me know, Dorie Dillard! I had a friend locally, inquire about selling their home. The estimate came in $100K LOWER than their value! It's SUCH a scam and sad for the homeowners who fall for it, for sure!

Happy Monday!

Apr 09, 2018 05:33 AM #79
Rainmaker
139,437
James (Jim) Lawson, DBA
DomainRealty.com LLC - Bonita Springs, FL
Broker Associate, RSPS, BPOR, HI & PE

Great post Debe. Must read especially for every seller and agent. The world is full of these third party interlopers. 

Apr 09, 2018 09:53 AM #80
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