PITTSBURGH — The hot housing market is something many homeowners are taking advantage of these days, but it could lead to rip offs and other issues if you’re dealing with a predatory wholesaler.
Olivia Hileman and her husband are selling their house. Just a day after putting their home on the market they already had about eight showings.
But the Heilman’s did their research on what the correct asking price should be and are working with a broker. “It’s a large ticket item it’s an emotion filled purchase purchase and sale so you’re always gonna have a hesitation” Olivia says.
But real estate expert Erik Bildman says for every home seller like the Hileman’s, there are others out there who fall victim to what’s known as a predatory wholesaler.
Predatory wholesalers, Bildman says “Are known for contingent contracts meaning they can get out of the contract at anytime, assignable contracts, which means they’re not actually the ones purchasing a property, they are going to just contract property and then assign it to another investor for up for a pretty hefty fee.”And this could mean you’re not getting the best return on your sale.
Local real estate broker Ryan Brown from River Point Realty, says wholesale predators are no stranger to Pittsburgh. “We see that a lot in sales sales as well as licensed real estate brokerage we see that it’s a lot more prevalent in the last few years. “
Brown says if you’re looking for maximum value on your property there are better options. “For home sellers that have a good home that is able to be shown well and sold, just selling it directly to a wholesaler, sometimes they’re cheating themselves.”
The most important thing Brown says a homeowner can do for themselves right now is to talk to a real estate professional. Most of the time their advice is free.
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