JEFF STROWE 2021-10-26 22:11:03
"WE PAY CA$H"
Homeowners in Denton County likely have seen multiple offers to buy their home for cash, either through phone calls or direct mail. What are the advantages or disadvantages of selling to a cash buyer?
Denton County continues to be a sizzling region for the home buyers’ market. With properties selling at record rates, homeowners have been inundated with offers to buy their home as-is for cash.
These propositions arrive in an abundance of ways: emails, postcards in the mailbox and flyers tucked into door jambs. A company will offer to purchase your home at top dollar or more with minimal effort required on the part of the homeowner. If this sounds too good to be true, that means it likely is.
According to Realtor Brad McKissack, the top mistake sellers make when working with cash as-is buyers is a lack of due diligence. These buyers are not required to abide by state real estate regulations, an omission that they will surely use to their advantage. The Texas Real Estate Commission has standard practices in place ensuring minimum inspection requirements for home electrical systems, plumbing and structural foundation.
Furthermore, these cash offers generally are a steep discount, typically 20% less than fair market value.
“Buyout companies have contracts that protect them, not the client,” McKissack said. “I’ve heard of people who unfortunately just didn’t do the research and ended up in contracts they couldn’t go back and change.”
Much of the client confusion lies in the terminology. A cash as-is buyer offers to purchase a home in its current condition, typically with no upgrades, repairs or refurbishments necessary. Some predatory agents flip the homes after glossing over major repairs with shoddy patch-up work.
“I’ve heard a lot of horror stories over the years of clients getting in deep with these types of sales,” said Realtor Chrissy Mallouf. “These companies don’t have to include disclosure statements. Something as basic as a disclosure of death in the home wouldn’t need to be revealed.”
Disclosure statements also list foundation problems, mold or pest infestations, broken heating and air conditioning systems and more. Not knowing these issues can lead to problems.
Does it ever make sense to accept a cash offer? Both McKissack and Mallouf pointed to two instances in which it might be wise: if your home is astronomically priced or needs extensive and lengthy repairs. However, the safer option is to choose traditional sale methods.
“The as-is investors are there to make money,” warned McKissack. “Realtors are there to offer sellers options to get their home sold for the highest price possible.”
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