Have you ever gotten an unsolicited offer for your home and thought, “Well, maybe my house is more charming than the neighbor’s?” A dear friend and client of mine recently got wooed by such an offer and wondered if she’d hit the jackpot. But, as you’re about to see, this tale is less like winning the lottery and more like buying a ticket for a roller coaster ride – you might have a few thrills, but you’re probably going to end up right where you started, just a little dizzier.
The offer came in a letter from a self-proclaimed investor who was also a licensed real estate agent. His letter was presumably a campaign mailing into Terravita and Scottsdale North. He made a range of promises: he wouldn’t lowball, he’d buy at the fair market value, and there would be no commissions, no repairs, and no closing costs, and a preferred closing date with the ability to stay in the home after closing. The letter she received suggested a net offer of $855,000 to $1,080,000. This opening estimate came fairly close to the real market value.
Unfortunately, after calling the agent/investor and having him to her house, the offer she actually received was over $100,000 below the market value. Understandably, she was disappointed, but the unpleasant scenario life had placed her in at the moment pushed her to accept the offer. That’s when things took a turn for the worse.
She agreed to sell on a Friday, but midweek the next week, the investor returned with more unwelcome news: unexpected issues had come up, and they had to reduce the offer even further. Not only that, but they were also pushing for a quicker close on the escrow.
Naturally, my friend was frustrated and disappointed. She had hoped this deal would simplify her life, but it had only complicated it further. She found the resolve to back out of the deal entirely. I had already promised to buy her home for more than what the investor initially proposed, but she had had enough.
This story serves as a warning to be cautious with unsolicited offers. They can seem attractive at first, promising to save you from various costs and hassles, but they may not always deliver on those promises. Once you start down that path, it becomes easier to accept less than fair value for your property. If you receive such an offer, always consult with a trusted real estate professional.
Your home’s equity is a significant asset – protect it.