PITTSBURGH – The booming real estate market is something many homeowners are taking advantage of these days, but it could lead to scams and other issues if you’re dealing with a predatory wholesaler.
Olivia Hileman and her husband sell their house. Just a day after they put their house on the market, they already had about eight showings.
But the Heilmans have done their research on the correct asking price and are working with a broker. “It’s a big ticket, it’s an emotional buy and sell, so you’ll always be hesitant,” says Olivia.
But real estate expert Erik Bildman says that for every home seller like Hileman’s, there are others who fall victim to what’s called a predatory wholesaler.
Predatory wholesalers, Bildman says, “are notorious for contingent contracts, which means they can get out of the contract at any time, transferable contracts, which means they’re not actually the ones buying a property, they are just going to contract the property and then assign it to another investor for a pretty high fee. ”And that could mean you’re not getting the best return on your sale.
Local real estate broker Ryan Brown of River Point Realty says wholesale predators are no strangers to Pittsburgh. “We find that a lot in sales sales as well as in chartered real estate brokerage, we see that it is much more prevalent in recent years. “
Brown says if you’re looking for maximum value for your property, there are better options. “For house sellers who have a good house that can be presented and sold well, just selling it directly to a wholesaler, sometimes they are fooling themselves. “
According to Brown, the most important thing a homeowner can do for themselves right now is talk to a real estate professional. Most of the time, their advice is free.
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