Warning: Look for this in your contract
Your average real estate investor in Nashville used to be a local professional in another industry who dabbles in real estate as a way to supplement their income. And they would buy a few homes every year to flip or add to their rental portfolio.
It’s hard to believe how things have changed in the last decade.
Today’s average investor in Nashville is a large corporation or hedge fund who is buying homes in large numbers as an alternative to investing in the stock market.
Because they are more corporate and less human than their predecessors, you really have to understand how they operate. Many times the actual buyers will never set foot in the home. Instead, they will send representatives to view and inspect the home.
And put some of the buyer’s burden back on the homeowners. One of the ways they do this is with the language in their contract.
A common ploy reads something like this, “Buyer reserves the right to terminate or renegotiate this agreement at any time if the advertised square footage of the home or any other fact is misrepresented in the MLS listing.”
Now you might read this and assume that it is standard practice but nothing could be further from the truth.
What this does is give the buyer the right to walk away from the deal at any time.
You can hire ten different appraisers and all ten will come back with different square footage amounts.
In essence, if they find a better deal, they can cancel yours at any time and walk away from your contract without any repercussions.
And blame it on you.
While most investors won’t buy a property without this clause, you still need to understand your risk before agreeing to a contract.
If you have concerns about deals like this, then let’s talk. Message me: m.me/NashvilleRealEstateNow
I am here for you!