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You have seen the signs: We buy homes for cash, but is it legitimate?
Dear Phyllis,
I look forward to your weekly advice and believe my topic is new. I am the trustee for the sale of my mother’s home which is located in a small mid-west town. It’s a completely different real estate market there and I am in month five of a six month listing. There are six of us splitting the proceeds and I just want to be finished with the sale. I have seen companies advertise that they will pay cash for homes. Even though I know I won’t get what I’m asking for at least I’ll be able to unload this house. Thanks in advance for your input. Reluctant Trustee
Dear Trustee,
I understand being a trustee is a big responsibility and a lot of work. I too see these “buy homes for cash” signs plastered near the freeway on-ramps and agree that they look intriguing. Yet, the investors willing to purchase your home quickly with cash are doing so in order to make a profit. Although, I can appreciate in your situation that if you sell for tens of thousands of dollars less than the home’s actual value that it may not be that significant due to the six-way split.
In this instance, let’s address why your home hasn’t sold. What does your Realtor® have to say on the subject? Moreover, ask at what price your Realtor® believes your home will sell. Once you are armed with this information, you can meet with someone who will pay cash for your home and learn at what price and how long before they cash you out. Therefore, it wouldn’t hurt to check with your current real estate agent and ask her if she believes she can sell your home quickly for perhaps 5%- 10% over the cash offer (or whatever amount you feel is worth the trouble).
Finally, as with any contract, please read the fine print carefully, or better yet, have the real estate attorney who prepared your mother’s trust review the documents.
Call Phyllis @ 818 790-7325 or email her at [email protected] with your real estate questions.
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