Today the Federal Trade Commission fined Opendoor $62,000,000 for misleading sellers into thinking their offer was better than it was. Opendoor isn't a big player in the Chicago area but this is a typical story that happens to sellers that seek out investors to sell their house hoping it's going to be easy and still get paid a fair amount for it.
Deceptive offers often start high. It's the highest offer, so it's the best, right? After signing a contract there can be hidden fees, further inspections that lead to a price reduction, and of course the sale of the contract you just signed to someone else (wholesaling). All of these scenarios lead to seller frustration but they feel committed to the deal because in some ways starting over feels worse. Sellers feel ready to be done with their house and even though they just received the bad news that they will be receiving less money for the house than originally agreed-upon, they sometimes still proceed. Investors know this. However, not every investor plays these games. Check online reviews and ask for referrals. The best ones out there simply buy the house after one visit without further inspections, opportunities to reduce the price, and have the money ready to go. Keep this in mind as you gather offers from competing investors. Each one may have different strategies and treats the transaction differently. The best ones treat you as a customer instead of someone on the other side of the transaction.
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AuthorEric Strung and Direct Property Buyer Team Archives
January 2024
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*Members of Direct Property Buyer have real estate licenses held by Spartan Residential.
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