Distressed Sellers Beware
FolsomCorner readers know that the real estate market here in Folsom is hot right now. Homes under $500,000 are barely getting the signs up and they go pending.
As I was taking a look at the homes that came out on the market one caught my eye. The right price for a client of mine! I started to check out the “stats” All looked good. Agent’s comments included that a major piece of equipment was not working. OK, for the right price it can be replaced.
Viewing instructions stated to call the owner to make an appointment. When I called to set something up, it was not the owner of record calling me. I questioned the “owner”. He gave me quite the story. Bottom line is he is going to buy the home from the sellers and consecutively sell it to the next buyer while making a profit. Not ever actually taking title, getting a loan or paying for the house.
Now I don’t know the whole story, perhaps he gave some money to the sellers. Not sure. But I do know that the amount of money this “quickie owner” is making could have gone to the actual owners of the home. In this market, even homes that have issues can be sold.
If you are a seller, wanting a quick out and you see all those signs advertising “we buy houses” “Cash now” etc. I understand checking their offer out. But please check with an active Realtor in the town you live in. You might be surprised how easy it would be to sell your house quickly. And you get the full amount, not sharing with a middle man!
If you are a buyer and find yourself wanting to buy a house in this situation, please think twice. There are so many grey areas on who is to give you disclosures, who is liable if something goes wrong, would this be considered a flip? Would FHA approve this?
If you or someone you know is thinking about a situation like this, have them contact me. I will more than happy get them all the facts they need to make the best decision for themselves.