Don’t be fooled by deals that sound too good to be true or too easy. This is a story of a woman in North Las Vegas who lost her husband a year ago and felt increasingly lonely after. She decided to move back to Ohio after selling the house that was already paid off since her children and grandchildren lived in the Midwest.
After receiving a letter from HomeVestors of America, she called the local franchise to find a buyer for the well-maintained, four-bedroom stucco house. She thought it would be easier for her to sell her home that way, but she lost a lot of money because this company is known for its slogan “We Buy Ugly Houses”.
She signed a contract that evening after a representative from the franchise, Black Rock Real Estate, came to her house and offered $270,000 right away. One of her sons was shocked at the price she paid for selling her house. When she checked the internet, she discovered she could get much more for it. Therefore, three days after signing the contract, she contacted the company and canceled it.
You must get a cancellation letter from the company if you are canceling a contract – THIS IS A MUST! The woman in the story only had a verbal cancellation.
According to a ProPublica investigation published last year, HomeVestors franchises sometimes use aggressive tactics to bind homeowners to sales contracts, even if they no longer want to sell. In addition to filing lawsuits, you may need to record title documents.
She listed her home with a real estate agent and received nearly 20 offers within days, accepting one for $372,500 – more than $100,000 more than Black Rock had offered. Â
Her new deal was set to close on July 14. A search for lawsuits, liens and other obligations against the title that would prevent the sale had come back clear. She was on her way to Ohio by the end of the month.
A copy of the Black Rock contract that the woman thought had been canceled appeared soon after at the office handling the sale’s escrow process.
In Nevada, and more than half of U.S. states, escrow offices handle the process between the signing of a contract to sell a house and the closing of the deal rather than lawyers. In order to resolve the competing contract to purchase the home, the escrow officer had to freeze the process.
When ProPublica contacted Bassett about the situation with Black Rock, he offered to release her from the contract and pay her legal fees.
It was unclear who sent the Black Rock contract to her escrow officer in this particular case. Bassett, however, acknowledged in a brief phone conversation with ProPublica that his office had. As a result, the escrow officer refused to discuss the deal, noting that Black Rock wasn’t a party to the sale, he said. According to him, they believed that we still had a contract. It had nothing to do with blocking the sale or trying to hurt him.
She closed on the sale of her home on July 14, arranged by her real estate agent, and will move to Ohio by the end of the month. “I’m thrilled,” she said.
Selling your home should always be handled by a reputable real estate agent, who makes sure all the i’s are dotted and the t’s are crossed. As you can see from this deal she could have lost thousands of dollars if she sold her house to “We Buy Ugly Houses”. This is just one case; however, many people are fooled. Moral of the story- Do Your Homework and use a legitimate real estate agent. Get a referral from a friend.
Keep in mind that whether you are interested in buying a home or selling a home, a Realtor should represent you– this person is working for your benefit and will help you navigate through the buying or selling process. We have celebrated selling both New and Resale Homes for over thirty years…..
We are here to answer any questions you might have – just email jennifer@smithteamlasvegas.com
Thanks and make it a terrific day…………The Smith King Team
