Beware of Quick Home Sale Companies Targeting Seniors

Many seniors are being inundated with calls and mail from companies offering to buy their homes quickly and at a below-market price. These companies often target seniors and homeowners with a lot of equity in their property, who may be in financial distress or feel pressure to sell. While they may seem like a convenient solution, these companies typically have a business model of buying low and selling high, leaving the seller with less than their home's true value.

Key Takeaways:

• Companies like these typically target seniors and homeowners with a lot of equity in their property, who may be in financial distress or feel pressure to sell.
• These companies offer less than what the home is worth in exchange for a quick sale, without the seller worrying about repairs or paying a broker to list the property.
• They often add a 6 or 7 percent fee that gets buried in the fine print, eliminating the only possible benefit of not listing the home with a Realtor.
• Brokers have an incentive and the tools to sell your home at the highest possible price, in exchange for a negotiated commission.
• Research investment companies thoroughly, read reviews, and check their rating from the Better Business Bureau to see if they’ve received complaints.
• Ultimately, these companies are looking to turn a profit on your property, with investors making a ton of money by buying and selling homes quickly.

Statistics:

• Many homeowners, especially seniors, are being bombarded with solicitations from these companies.
• These companies often add a 6 or 7 percent fee to the sale price, which can significantly reduce the seller's profit.

Sources:

• Stacey L. Tutt, senior staff attorney at the National Housing Law Project
• Sarah Bolling Mancini, managing director of advocacy at the National Consumer Law Center
• Better Business Bureau (BBB)