Why You Should Avoid Wholesalers
If you live in the Omaha area, you have probably received a letter from an investor or realtor looking to buy your home. In the very least, you have seen either a sign on the street, a billboard, or a commercial advertising their services to “Buy Your Home for Cash” with “No Realtors” and “Closing Costs Paid”. And I am here to tell you to AVOID THIS TRAP AT ALL COSTS.
Here is my recent experience with a wholesaler who approached my client with a cash offer. My client had recently lost his father and he was the personal representative of the estate. This was the first obstacle. Making the situation more difficult, he did not live in the same city and the home was full of his dad’s and brother’s things. And I mean full–floor to ceiling. Feeling overwhelmed by the whole process of emptying the house and getting the property ready to sell, he thought, “how easy it would be to just hand over the keys to the house and not think about it.” Luckily he trusted me enough to show me the contract and ask my advice. On this particular property, the wholesalers offered my client $105,000 to take the property as-is. After ensuring him that he could get significantly more money and that I would take care of the details, he decided to list the property instead of the private property sale. I hired and supervised a crew to clear out the house. Once the house was empty, I had the old carpet removed to show off the wood floors and had a cleaning crew give it a shine before it went on the market. Needless to say, my client made more than $40,000 more than what the wholesalers offered.
So long story short: wholesalers take advantage of people who feel overwhelmed by the process of selling a home, especially homes that are not “market ready”. And I am here to tell you that I am here to protect you, your investments, and YOUR best interest and take away the majority of the stress involved with selling a home. Wholesalers are looking for a good deal and want to make the most money possible. Whether you work with me or another realtor, please please please do not sign a deal with a wholesaler without reaching out to a realtor first. It doesn’t cost a thing to have a conversation about your best interest. If I didn’t think I could get my client a significant increase in their take-home payout, I would have given him the green light to work with the cash buyer. As a matter of fact, initially they sent a contract for $205,000 to him to purchase the home. I told him it was a great deal and that he should take it. He came back to me and said, “they said it was a typo and the real offer was for $105,000.” I don’t know if that is a common technique wholesalers use to start a conversation or it really was a typo, but a good realtor will always give you honest and fair advice about your home. Realtors are bound by a fiduciary responsibility to their clients that I take very seriously.
In closing, thank you for trusting me with your friends and family. I am always honored and humbled by the business that you all have sent me. If you ever have questions about the market conditions (no the market is not crumbling despite what the news is telling you) or how to become an investor or just want to catch up, please reach out. And this year especially, I have learned a ton about probate, trusts, and estates, so if you know someone who needs a realtor to guide them through this process, I hope you’ll think of me.
Your favorite realtor,