By Connie Thompson
“If you own a home in a popular community, buyers could be about to make you a cash offer- even if you have no plans to sell. The offers may sound good, but there can be a major downside. Demand for homes is so high- some buyers don’t wait for houses to go on the market. If your home fits what they’re looking for- you get what’s know as a cold call offer by card or letter.
Jim LaCour has been getting offers from strangers who want to buy his view home in Seattle.
“Initially I thought that’s probably a good idea,” said LaCour. “You know, someone is interested in our home and wanted to pay cash for it. I didn’t think about the fact that someone might not give you what it’s worth.”
Certified Financial Planner Nancy Dienes urges caution. She says unsolicited cash offers are typically far below market value.
“When they offer you these cash offers, they’re generally at a discount,” said Dienes, Principal at Blue Canoe Financial Planning. “Some of the information I’ve read indicates that a cash offer is going to be somewhere between 70 and 80 percent of what the fair market value would be.”
Remember, a lot of these solicitations are from investors looking to turn a profit. Don’t make their gain be at your expense. Before you say yes, do your “home” work. Compare online value estimates for your address. Have a real estate office do a value analysis. Or consider paying for an independent appraisal.”