Not all investors are rogues and carpetbaggers, but “SELLER BEWARE!”
As real estate brokers it is amazing the number of cash offers we get from investors on our listed properties, Often these offers are full price or above list price. The interesting aspect of this is that when we pull the lock box property entry register, they have never looked inside the home and in fact, probably never even driven past. Then if they get a property under contract, they visit the property to see if they want to buy it.
Home owners who deal directly with the investor you should be very, very careful. The contract the investor will offer you, the home owner seller, often states in the small print that the buyer/investor can back out anytime. They can even back out, or try to re-negotiate at the closing table. This is where the “would be seller” finds out the true price the investor will pay for the property.
Yes, right after all the moving arrangements have been made and a new home waiting to be closed, the investor changes the offer! The investor gives a “take it or leave it” price at the closing table. Have you ever felt you have been had? Well, you have!
Remember if you deal with a licensed real estate broker they are obligated by their license to insure that a sale is conducted properly using a fair, honest and above board contract. Most reputable brokers use the Georgia Association Realtor (GAR) contract. This document allows specific time periods for the buyer to back out after a “due diligence period”. The closing is not the time to find out what the buyer is willing to pay. Protect yourself from tricksters!