More Buyers Should Beware
In the last few months I’ve been on a tirade.
I’m very concerned about how wholesale buying companies are, in my opinion, creating consumer protection issues. You know the companies I’m talking about. Their ads are everywhere.
I’m not going to give them a free plug. But you know them. These are the guys who promise to buy your house quickly and you pay “only 1% commission,” or some such nonsense.
Watch this short video on how previous clients sold their home, thinking they would pay about 1% commission, but ended up giving up about 9.4% in order to sell.
So, I’m not letting it go here. I’ve published three more videos that go in to greater detail about how these companies are mis-leading consumers.
- The first video goes in to the reasons these companies give for you to use them. Hint: they are bogus.
- The second video takes a deeper look at what “fiduciary responsibility” is, why a realtor has that responsibility to you and how these companies get around it, all while giving the impression that they are looking out for you.
- The third video explains how a “1% commission” can easily result in a 9% loss in your profit when you sell your home, if you are not represented.
“But,” I hear you say, “you’re just a realtor who’s afraid that your business is going away because there is a new business model, and you are not willing to adapt.”
Well, watch the videos and then call me at 602-456-9388. I don’t bite and I’d love to hear how this model in any way protects consumers.
These companies are literally having inspections and deducting repair costs off of the price of the home with little or no resistance from the seller.
They are locking sellers in to a process that goes against their interest after baiting them with the promise of low commissions.
That is about as close to a scam as I can imagine and I’m deeply disappointed that the Arizona Association of Realtors nor the National Association of Realtors (who’s job it is to protect consumers, they say) has not taken action to educate the public.
So, it’s left to me, my little camera phone and my little office.
Oh, and if you are a buyer and you don’t think this affects you, please consider that these houses are being sold with inspections that may not be honest and possibly repairs or renovations that have not been done.
Specifically, if the wholesale buyer does an inspection in order to force the price down, how do you know that they repaired all of those items? You don’t have access to the previous contract, do you? Plus, you will often see these properties sold “as-is.” If it was serious enough to warrant a price reduction, shouldn’t it be serious enough to repair for the next buyer?
If you need a real estate team that takes your interests seriously, please call us at 602-456-9388.
