By now we have all heard about Opendoor, Offerpad, Homevestors, Zillow and the like that promise to pay you top dollar for your house the fast and easy way. In almost any area you will also see dozens of local company’s making the same kind of promises. Here is the question anyone Selling DFW Real Estate needs to ask themselves; Will these companies actually close the purchase of my sale or will they wholesale it to another investor?
Wholesaling; what is that? This is a trick used by many companies and investors that find victims by cold calling, using roadside signs, or even finding victims by using online advertisements on social media sites like Facebook. This scam is when someone pretends to purchase your home and pushes you to sign a contract. Instead of buying your home, a “wholesaler” posts photos of your house on craigslist and other websites to try to find an actual buyer. This means one of two things: either the “wholesaler” sells your house for an average of $17,500 more than what they promised you and pockets the difference or your closing does not happen and often times you learn you have been deceived on the day of closing.
If you are Selling Dallas Real Estate and are searching Google for home buying companies in your local area check out the company by searching “Opendoor Scam” or “Progressive Real Estate Solutions Scam‘ and see what other home sellers have to say about their experience with these companies.
Also, here are some simple questions to ask any buyer to make sure they are not a “wholesaler,” but be careful because if they are a “wholesaler” they may not be honest about their intentions.
Are they a real buyer or wholesaler?
Do they intend on “assigning” the contract to a real buyer?
Are you placing online advertisements for my property?
Do they have a website?
Do they have a physical office location?
Are you sharing my personal information on craigslist or on Facebook?
Watch for these Red Flags:
🚩Wholesalers (or any other predatory home buyers) are known for high pressure negotiations tactics.
🚩You will notice if they promise an unusually high price. Things will not seem right.
🚩They Lie to you about the condition of the property in attempt to steal your equity from you.
🚩They requests for the deed before the closing has actually taken place.
🚩They let you know that they have buyers that will like the property.
🚩The sales contract they use does not specify that they cannot change the price.