Why Home Sellers should Avoid Real Estate Wholesalers
??Dean Anders? Finance Economist Corp Lawyer B.
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Unscrupulous Real Estate Wholesalers can end up impoverishing their victims for the rest of their lives.
As the average person is financially illiterate - never having studied economics, accounting or finance - they are inept when it comes to analyzing the numbers when a slick fast talking wholesaler makes them an offer they should refuse.
In many instances wholesalers try to steal homes from owners with an attempt to obtain a discount to Real Market Value of 40% or more. If the home owner has a mortgage on their house it is unlikely they will be left with a significant amount of cash out of the deal. If they home owner is fortunate enough not to owe any money on their property while they will end up with some cash it is at an enormous expense.
For instance, instead of accepting a wholesaler's offer for their property at only 60% of the properties value if they were more prudent and put in the effort or waited to find a True Home Purchaser and not a barracuda they might only have to discount their asking price by 10%. In which case they could end up with 50% more money for their home'. Chances are they can not do the math to see that having $90,000 instead of $60,000 gives them $30,000 more money - which is a 50% higher figure.
For those with a mortgage on their home their position would be almost infinitely better if they did the same. As having no money out of the sale of their home instead of the $30,000 should be easy to compute. In fact it is hard to see why they would not choose $30,000 over zero - or even 10 or 20 thousand dollars in preference to nothing!
The spiel given to the home Seller by a Wholesaler makes it sound like the desperate seller is being given a favor instead of the way it really is. It is the Wholesaler who picks up all the benefits and the home seller is definitely badly done by.
At times market conditions are such that buyers are hard to come buy - or the real estate agents are clearly not doing their job - particularly if your house is not an easy one for them to sell and pick up a large commission for virtually no effort on their part.
The Best Solution by far is to wait it out - which unfortunately a desperate home seller is unable to. Those who can wait should simply put the house sale on the back burner and look at selling the property for more a few years down the track. If you had the choice of just giving your home away today for nothing or picking up 5% or even 10% of its value after paying out all home loans in say 5 years time which seems to be the better option? 5% and 10% does not sound like much - yet on a $400,000 home it is $20,000 and $40,000. Which is certainly much better than the poke in the eye with a blunt stick coming from the greedy wholesaler.
Who knows - if the home owner only needs to discount their home by 10% they might end up with $120,000 in Cash. In fact there are buyers in the Market today who will give you that if you are prepared to sell on terms - which translates to you getting full value for your home if you wait a few short years. A far better proposition to sacrificing your home today for peanuts!
If the prospect of getting money for your home in a few years rather than nothing; or getting a lot more in 5 years than you can today would you appreciate some assistance to do that? There is that opportunity for even the most desperate home owner (provided your home is not underwater or in foreclosure).
There are Good Samaritans willing to assist you with a more than generous offer on your property - giving you a lot more than what the shonky wholesalers are holding out to you right now. In addition if you really do not want to leave your home immediately you can receive financial support for the next few years - to cover a large part of your mortgage commitments and other household expenses. All you need do is make contact and let our Home Purchasers help you!
Just connect with me on here and send a PM with the magic word "Assist".
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Business Owner at Dallas Residential Ventures
8 年I am a wholesaler in the Dallas area who has gotten several deals after the homeowner put their house on the market and could not sell it for what the realtor promised them. The difference between a wholesaler and a realtor is that, for the most part, a wholesaler can deliver on their promise almost immediately. We do buy at a discount but the seller has the benefits of a quick and easy transaction. It's not always all about the money for all sellers. Unfortunately there are many unethical wholesalers out there but I also know just as many real estate agents who will say what they need to to get a listing.
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8 年Wholesalers are not so different than the realtors. Many times the realtors over value the homes in hopes of a larger commission. The home then sits on the market forever. Many times after several months, price reductions and showings, it ends up at the same price the wholesaler would have given to begin with once you pull out the doc fees and of course the realtors commission. The wholesaler would have had the home sold in less than 30 days and at no additional cost to the home owner. The wholesaler would have also negotiated away any liens attached to the property. No realtor would even think of doing that. And the home would have sold with no repairs being necessary. A true As-Is. Yes their would be a discout for convenience, no different than the corner store, but the home owners would know exactly how much they would be walking away with and no work on their part to get that.
Not all homes are the condition or have the ability to sell to a traditional home buyer. We're a very large wholesaler. The business we do is mutually beneficial for those who sell to us and for us. Painting with a bit of a broad brush my friend. Perhaps you have just had experience with some bad elements, as those do exists.