As the daughter of an aging parent, you may be worried about your loved one's future living arrangements. One option to consider is selling their property to ensure they can transition to a more suitable living environment, such as an assisted living facility or a smaller, more manageable home. In your search for potential buyers, you may come across real estate wholesalers and licensed agents. While they might seem like convenient and quick solutions, it's essential to understand the potential risks associated with them. This article will reveal the hidden truth about real estate wholesalers and licensed agents who act as buyers, helping you make an informed decision to protect your aging parent's best interests.
SOME THING TO NOTE: selling a home ON the market will almost ALWAYS, ALWAYS ALWAYS give the seller more money than selling the home off-market, even with the fees associated with brokers. That said, sometimes, the seller can’t wait for the time it will take to receive the money. Life happens, and the timeline associated with going ON-market is not guaranteed, though a true professional should be able to estimate an accurate time frame based on the price the seller is wanting.
If you happen to be in the CASH NOW crisis: here is what you need to be aware of:
Why You Should Be Wary of Real Estate Wholesalers and Licensed Agents as Buyers
Real estate wholesalers act as intermediaries between property sellers and buyers. They typically find undervalued properties, negotiate a purchase price with the seller, and then enter into a contract with the intention of quickly assigning the contract to an end buyer for a higher price. Licensed agents, on the other hand, have the proper credentials and are legally allowed to facilitate real estate transactions. However, if a licensed agent acts as the buyer in the transaction, there may be concerns about whether they are truly fulfilling their fiduciary duty. Here are some reasons why you should be cautious when dealing with wholesalers and licensed agents as buyers:
- Legal and ethical concerns: Some wholesalers operate without a real estate license, which is required by law for those who negotiate, advertise, or facilitate real estate transactions. Engaging with unlicensed wholesalers may expose you and your parent to legal issues and financial risks. With licensed agents acting as buyers, the concern is whether they are truly acting in the best interest of the seller.
- Lack of fiduciary duty: Licensed real estate agents have a fiduciary duty to protect their clients' best interests. However, when an agent acts as the buyer, there could be a conflict of interest, and their duty may not be upheld, potentially leading to unfavorable outcomes for the seller. The agent should be able to prove they gave the best offer.
- Lowball offers: Wholesalers often target distressed properties and motivated sellers to negotiate a lower purchase price. Licensed agents acting as buyers may also present low offers to secure a better deal for themselves. This may result in your parent receiving significantly less than the fair market value for their property.
- Comparing offers: When a licensed agent acts as the buyer, they may not showcase other legitimate offers from investors, limiting their options and potentially causing their client to accept a less favorable deal.
How to Ensure Your Parent's Best Interests Are Protected
To minimize risks when dealing with real estate wholesalers or licensed agents acting as buyers, consider the following precautions:
- Verify their license: Check if the wholesaler or agent has a valid real estate license by searching your state's real estate commission website or contacting them directly.
- Investigate their track record: Look for reviews, testimonials, or case studies that showcase their past transactions. This will give you an idea of their credibility and reliability in the market.
- Require a comparison of offers: If a licensed agent is acting as the buyer, insist on comparing their offer with other legitimate offers from investors. This ensures transparency and helps you make an informed decision on the best offer for your parent's property. If your agent declines, call us, we’ll give you the necessary expertise to know if its a good offer.
- Consult a real estate attorney: If you're unsure about the wholesaler's or agent's legitimacy, consult a real estate attorney who can review the contract and provide guidance on your specific situation.
- Consider alternative selling methods: Explore other options such as listing the property on the open market, selling directly to a reputable investor, working with a cash-for-homes company, or creative financing options provided by Senior Home Partners. If you need the cash now, we can find a way to reap the most even in your time crunch.
The process of selling your aging parent's home is both emotionally and financially challenging. While real estate wholesalers and licensed agents acting as buyers may seem like convenient solutions, it's crucial to be aware of the risks associated with them. By requiring transparency, conducting thorough research, and working with licensed professionals who prioritize your parent's best interests, you can ensure they receive a fair deal on their property. Stay vigilant, explore alternative methods, and don't hesitate to seek professional advice to navigate this complex process successfully.
How our Process insures you get the best outcome for your family
We don’t believe in purchasing your home, even though we’re clear about how we could fudge our numbers to persuade you in that decision. Our “Opportunity Analysis” gives you a complete roadmap, and will often lead you to better outcomes than most Agents and almost universally better than any wholesaler. Check us out, and reach out for how we can guide you.
Ensuring the Best Outcome for Your Family with Our Process
At our company, we prioritize transparency and integrity. Unlike some wholesalers and licensed agents, we don't believe in purchasing your home by presenting biased numbers to persuade you. Instead, our comprehensive "Opportunity Analysis" provides you with a complete roadmap, outlining the best course of action tailored to your unique situation. This approach often leads to better outcomes than most agents and almost always surpasses any wholesaler's offer. We invite you to learn more about our services and reach out to us, so we can guide you toward the best possible outcome for your family.
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