Are you selling your own home? Are you hoping to get a cash offer for a quick close?
Well, you might be for a rude awakening since we are seeing tons of wholesalers who are writing unqualified cash offer only to flip the contract to another buyer for a fee.
I bet you now are wondering what is a “wholesaler“? The sole purpose of a wholesaler is to tie up properties and flip the contract to another buyers for a flat fee. These Wholesalers have no interest in closing the escrow on your home. They are only looking to get a fee when they release their contract to anyone else. So, the challenge facing the For Sale by Owners is to spot the fake offers from the real ones. Here are some clues :
1) Offer Price: Wholesalers often offer 5-10% below your list price since they need to create room for their commission when they flip the contract. So, watch out for low ball offers from these wholesalers.
2) Funds Source: Real Estate wholesalers often use funds that are typically sourced from an LLC that these Wholesalers have obtained with a fee. And since these kind of letters are issued to many wholesaler and are not worth the paper it’s printed on.
3) COE: Close of Escrow (COE) is another strong indicator that you are dealing with wholesaler since they often ask for 30-45 days to close.
4) Deposit: wholesalers often offer less than 1% of their offer price as their initial deposit. Since they only want to risk very little money in case they are unable to flip the purchase contract.
Finally, aaccording to National Association of Realtors, 28% of the homes sold by their owners were under-priced which is a huge loss.
So, Contact Us if you need help with your Silicon Valley home sale.