Houston home sales continued to flourish in May on a month-to-month and yearly basis. Homes in all price ranges increased since April 2018. Homes under $150,000 declined compared to May 2017. The largest monthly gains were seen in homes priced from $150,000 to $500,000.  Inventory of single-family homes increased to a 4.0-months supply, the highest it has been since September 2017.  The average days on the market fell to 52 days. 

The Houston Chronicle published their 2018 School Report Card. Learn about the region’s top schools and how schools in Houston and the surrounding communities ranked.

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Since Hurricane Harvey, I have listed and sold several homes that were affected. It has been an eye-opening experience. Having grown up in Meyerland, I have a vested interest in its future. You can say I am emotionally tied to the area. I don’t want investors or others to buy flooded homes, cheaply fix them up, then sell or rent them. I want the neighborhood to thrive. I want all devastated neighborhoods to recover from this event and be the same as it was pre-Harvey or even better.

With that said, I have been very taken aback by investor’s offers that clearly take advantage of my clients and others. To say it simply, HOMEOWNERS BEWARE. Many investors give very low offers, try to convince the homeowner they are right, have language included for them to easily terminate or lower their contracted price, etc.

It is always best to have an experienced real estate professional represent you when selling your home. If you choose not to, please have a real estate attorney review the paperwork.

When reviewing an offer, it is best to keep the following in mind:

• Look for fine print. Some investors include wording in their special provisions that is unethical, illegal and allows them to get out of the contract. Many times, this is written in such small print it is easy to miss it. Keep your eyes wide open.

o EX: One investor included, “Buyer is an investor and reserves the right to resell the property at any time and for any price at its sole discretion.” How can a buyer/investor sell a home that they don’t own? They have to close on the property prior to selling it to someone else.  In my opinion, this language indicates the buyer/investor is trying to sell this contract to an investor at a higher price than you are receiving.

• If you have a flooded home, you and the investor know there are issues. There is not any reason for the investor to ask for a multiple-day option period. This is their way out of the contract and/or asking you to lower your price.

o EX: When asked to remove the option period or limit it to 1 – 2 days, one investor’s agent emailed me, “It would be unethical to contract, send earnest and option money, and then come back and ask for a 30k plus reduction.” Although his comments don’t make sense since proper procedure is to execute an offer, earnest money is delivered to the title company and the option fee is delivered to the seller within 3 days, his goal was to lower the sales price by $30,000 going in to the transaction. The investor had already offered a below market price, planned to execute a contract and request $30,000 off the sales price prior to closing. That is not fair to the seller!

• Always ask for proof of funds prior to executing a contract. If it is a cash transaction, the buyer needs to “prove” he/she has the liquidated funds to close the transaction. If the transaction is financed by a hard money lender, ask for credentials. A credible lender will be a Certified Private Money Broker.

• Don’t execute the contract with a closing date too far in the future. This is the time investment companies try to “flip” the contract to independent investors. If they cannot find an interested party during this time, the buyer/investment company is likely to terminate the contract.

All in all, if you feel uneasy, listen to your gut. There is probably a reason you feel that way. On a positive note, there are good investors that can help homeowners that are in a difficult situation. If you are interested in what the investor and/or an individual buyer have to offer, do your due diligence. Get references, check online reviews and legal history. Most of all, let someone that is skilled protect your interests before signing on the dotted line.