Every week I see ads that promise “We Buy Houses Cash,” “Close in Days,” “No Repairs” and “No Realtor Needed.” Some legitimate cash buyers do exist. But many cash for homes companies are actually wholesalers, and if you own a home in Gold Beach, Brookings, Port Orford or anywhere in Curry County, it’s worth understanding the difference before you sign anything.
What a Wholesaler Actually Does
A wholesaler often puts your property under contract at a low price, then tries to sell that contract to another buyer for a profit. The wholesaler may never intend to buy your home at all. The difference between what you agreed to and what the end buyer pays goes into the wholesaler’s pocket, not yours.
Unfortunately, many homeowners don’t fully understand what they’re signing. Cash for homes mailers and ads are designed to sound simple and fast, especially for sellers who are under pressure.
A Real Story From Gold Beach
Earlier this year I helped an elderly homeowner in Gold Beach who believed she had sold her home. She hadn’t. She had unknowingly signed a wholesale agreement that allowed a company to try to resell her contract for an additional $75,000, money that would have gone straight to the wholesaler.
Her biggest concern was that she needed to sell quickly. The wholesaler had convinced her that working with a Realtor would take too long. That simply wasn’t true.
After working around the clock with her, we got her out of the contract and listed her home right away. By Monday we had 12 offers. We accepted the strongest one and worked closely with our local title company to move as fast as possible. By Wednesday, just 48 hours after opening escrow, ownership transferred to the new buyer.
She sold faster than the wholesaler had promised, and she received nearly $100,000 more than she would have under the wholesale contract.
Oregon’s Wholesaling Law: What Sellers Should Know
Oregon now regulates residential property wholesaling. Under the state’s wholesaling law, a person who wholesales residential property must either be registered with the Oregon Real Estate Agency as a residential property wholesaler or hold an Oregon real estate license. They must also give a written disclosure before entering into a contract with a seller.
If the wholesaler doesn’t provide that disclosure before the seller enters the transaction, the seller can cancel at any time without penalty and keep any earnest money already paid. That’s how we were able to get my Gold Beach client out of her contract: the wholesaler never gave her the required disclosure. You can read the rules directly from the Oregon Real Estate Agency’s residential property wholesaling page.
Warning Signs Before You Accept a Cash Offer
- You’re told not to talk to a Realtor, attorney or family member before signing.
- The offer is well below what similar homes have sold for.
- The contract lets the buyer “assign” it to someone else.
- You don’t receive a written wholesaler disclosure.
- You feel pressured to decide the same day.
Every situation is different, but if someone tells you not to talk to a Realtor before signing paperwork, that should raise immediate questions.
Selling Fast Without Leaving Money Behind
Speed is the main reason people consider cash for homes offers. The story above shows that a well-priced, well-marketed home can sell quickly on the open market, often with multiple offers. A local listing brings in many buyers, including genuine cash buyers, rather than a single offer from one company. Learn more in marketing strategies that help homes sell faster in Gold Beach and what your home is really worth.
If you’ve inherited a home and are feeling pressure to sell quickly, my post on probate sales and inherited property may help.
Get a Free Second Opinion Before You Sign
If you’re considering selling your home in Gold Beach, Brookings, Port Orford or anywhere in Curry County, I’d be happy to review any cash offer before you sign. A second opinion can save you tens of thousands of dollars.
Call me, Ray Warren with REMAX Ultimate Coastal Properties, at 541-373-6333, or request a free home valuation to see what your home could sell for on the open market.