I usually door knock in neighborhoods looking for homeowners who want to sell their homes. One of these days I knocked at a door, waited a few seconds and a man opened the door. He told me his name was Mark, he was in a wheelchair, had an oxygen tank connected to himself and could not move around quickly because he was very sick. He told me that he was planning to sell his home and move up North and live with his son. The house did not have any upgrades neither a garage and the pool had not been maintained for a while. We made an appointment to meet and show him the market value of his home. During our appointment we got to the conclusion that this was going to be an “AS IS” sale, which means the home will be sold for cash at a lower price because the man did not have money to do any repairs on the house. He wanted to wait for his son to approve the sale and then he would sale. A few months went by and when I followed up with him over the phone or in person, he always told me he was waiting for his son to come to visit and approve the sale.
One day I received a call from a woman who introduced herself as Mark’s daughter. Her father had died a few days ago and they had found my information at his house. She and her brother wanted to meet with me and know how much the house could sell for. I came to the appointment, discussed all their options, told them how much the house could sell for and asked them to sign the listing agreement. The daughter told me that she did not want to sign a listing agreement at that point because she did not know if she could sell the house. The house was in a trust, so I knew that the trustee could execute all the sale documents and the property would not need to go through probate. I insisted on them signing the agreement to put the home on the market immediately, but they refused to sign. The weeks went by and I followed up with them to see when they wanted to sell the house. One day, they answered the phone and told me they had sold the house themselves to an investor who paid cash for it. They did one of these deals where an investor buys the house and then assigns the contract. After assigning the contract, the first investor will make at least $5,000 and the new buyer has to have room for some profit after renovating the house, which means that they had to buy the house at a low price to cover the profit for all the people involved in the transaction.
At the end, the seller ended up receiving less money at closing than they would have received listing with me, and they had to do all the work themselves. Sometimes it is better to listen to a Real Estate professional instead of trying to do ourselves what we really don’t have any idea how to do.