Seller Beware! Understanding investors trying to buy at a discount.
If you’re an executor or administrator of a probate estate, one decision could cost the estate tens of thousands—or even hundreds of thousands—of dollars: selling the estate’s property without fully understanding the strategies real estate investors use.
What You Need to Know
As the personal representative of an estate, you’ve likely been inundated with calls, texts, and letters from investors offering quick, hassle-free cash deals. While these offers might sound tempting, they are often designed to benefit the investor—not you. Their primary goal is to purchase the property for the lowest price possible and maximize their profit, often at the expense of the estate’s value.
Worse, these deals are frequently presented as guaranteed and risk-free, but they often include hidden risks, vague contingencies, and conditions that shift significant risk onto the estate. As the executor or administrator, your legal responsibility is to protect the estate’s assets, so understanding these strategies is essential.
The Two Main Types of Investors
1. Wholesalers
Wholesalers don’t intend to purchase your property themselves. Instead, they put it under contract at a deeply discounted price, then assign or sell the contract to another buyer—usually another investor—for a higher price. Their profit is the difference between what they offered and what the next buyer is willing to pay.
Common Risks with Wholesalers:
Custom contracts that favor the wholesaler and lack critical seller protections.
"Equitable interest," which allows wholesalers to market the property without full ownership.
Practices like daisy-chaining and double-closing, which complicate transactions and often result in deals falling through.
2. End-Buyer Investors
End-buyers plan to close on the property but often use contracts designed to limit your protections. They may rely on risky financing, such as hard money loans, or include vague contingencies that let them back out easily, leaving you with wasted time and resources.
Investor Tactics to Watch Out For
Investors often use high-pressure tactics to convince overwhelmed sellers to accept lowball offers. Common strategies include:
“We’ll pay cash and close fast.”
Reality: These offers often rely on unstable financing or contingencies.
“No repairs needed, we’ll buy as-is.”
Reality: Many traditional buyers are also willing to buy as-is, often offering more. The same investors who would buy your house off market for a deep discount would also buy it for more money on the open market.
“This is a one-time offer—decide now.”
Reality: Rushed decisions benefit the buyer, not you. They can also be the opposite and be super friendly to lure you into a deal that could be drastically renegotiated after going under contract.
“You’ll save money by avoiding commissions.”
Reality: Proper marketing with an agent often nets higher proceeds, even after commissions.
Protecting the Estate and Maximizing Value
At Kritt Real Estate, I’ve developed a proven strategy to ensure probate properties are sold quickly and for maximum value—without falling prey to investor games. Full market exposure attracts serious buyers and creates competitive bidding environments, ensuring the estate gets what it’s truly worth.
Remember, the agent you choose matters. With extensive experience in probate and inherited properties, I understand the unique challenges executors and administrators face and am here to guide you every step of the way.
Ready to Protect Your Estate?
If you’re managing a probate property and want to avoid costly mistakes, contact me for a free, no-obligation consultation. Together, we can ensure the estate achieves the best possible outcome.
