What is a “Quick Sale” in real estate?
I have property in New Orleans that has a house (which has been gutted) on it. This property was affected due to hurricane Katrina. I’m not if that has any relevance to what I’m about to ask, but just wanted to mention it, because it has relevance in the reasoning of why I am selling it for such a cheap price.
I was contacted by a contractor who is willing to buy it from me. He is offering me much less than what the property/dwelling is worth. I am going to take his offer because honestly at this point, I just want it out of my hands. I own the property out right. I paid off my mortgage two years ago and there is no lien on the property.
Here is my question- he has been handling everything and says that my husband and I just need to show up to sign paperwork next tuesday. He says we are going to do a “quick sale” and that he will pay us right then and there with cash. (I’m assuming he means a cashier’s check and not literally cash) This whole process has taken only about two weeks. I’m starting to get concerned that maybe I’m missing something? I’m anxious to get this over with and I’m sure he knows that. I just don’t want to be taken advantge of even more so than I already am by accepting less than what the property is worth…
Is there anything I should know going into this?
What exactly is a “quick sale”?
…btw, I did ask this same question a couple hours ago but got zero responses. I figured if I used a different heading for the question, I might get more answers…
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Filed under: Buy Property
“Quick sale” has no legal meaning. He probably literally means, “fast,” as opposed to a sale that will drag on for weeks awaiting mortgage approvals, inspections, funding, etc.
I imagine that since this contractor is doing all the paperwork, then he will also be preparing the deed. I would *highly* [repeat: *highly*] suggest consulting a local attorney before next Tuesday. At a minimum, you want to be sure you do not incur any potential future obligations after you sign the deed. In the other 49 states, you would sign what’s called a “quitclaim” deed. (I don’t know what civil law states like Louisiana call it.) By granting via a quitclaim, you are literally saying, “I am selling this property to you, and giving you no warranties at all concerning quality of title, existence of easements, or covenants, or whatever. So, don’t even think of suing me later if you find out there is some undisclosed easement that prevents you from building that 20 unit apartment complex you were planning.”
See a lawyer in your area. The nominal consultation fee will be well worth it.
Please be carefull in whatever you do, and don’t get to anxious. There are so many people that will take advantage of you. You can really lose big if you’re not careful. No matter what you do, I’d take your time, and talk to other people in the neighborhood who have recently purchased a home, and/or recently sold a home, so you can be sure of it’s value. I’d also check the rmls website for a period of at least a couple months, and watch the pricing of similar properties to your own.
If at all possible, I would hold on to the property for awhile, because with the way the housing market is now, this is a terrible time to sell. In two to 3 years from now you could very easily get 2 to 3 times the amount you’re thinking about taking for it now.
If you have any good friends that are handy with things related to home construction, I’d also consider making a deal with them to restore the house, and split any additional profit you make with them. You may even be able to work this kind of a deal with a construction company. I have no idea what you plan on selling your house for, but just for an example, if you’re planing on selling your home for 50k now the way it is. Get some one to fix it up, and then whatever money the house brings over 50k minus what money you put into the renovation, split that with them. If the home is completely gutted, renovating it will at the very minimum double it’s value, and will most likely triple it’s value or more. I live in Oregon, but if I lived closer that would be a deal that I would love to get in on, as I do that kind of work.
But anyway, please take your time. I hate to see people get ripped off in these types of situations, and I know that there are a lot of crooked people down in that area taking advantage of people in your situation. Never be in a hurry. If that guy is trying to rush you, you know damn well that he’s getting the best end of the deal, and probably don’t want you talking to other people and learning more about your situaton. As the other guy, I’d also highly suggest speaking to a lawyer, and if not that, at the very least speak to a realestate agent.
If you have any questions about any of this, feel free to email me.
Just in case you may not end up reading this, I was going to email you this as well, but noticed you don’t allow emails. Hopefully you check back here.
Good Luck