Too Good To Be True

I got the above postcard last week, perhaps you did too. It’s from “an experienced investor interested in buying properties in your area.” There is a home-spun aesthetic to the note, as if it might have been written on the spot, with a blue ballpoint, by a neighbour with no head for figures. As if these people might not be corporate investors at all. As if you might actually do well in a deal with them, and might even take them, more than you suspect deep down they’d like to take you. Despite its numerous calls to action, it still strives for a low-pressure approach. Unfortunately I can see it getting some traction. 

I say unfortunately because if you dig into their website, this Ottawa business admits (as we surely knew) that they’re looking to buy your house for “a fair discount” (“fair” meaning “as large as possible”) and for “below market value”.  They claim, in defence of their not paying you what your house is worth, that in many markets it takes 6-12 months to sell a house, and what they’re offering is a quick, hassle-free sale. And sometimes, they suggest, the pace of things can make up for the fact that it’s not a good deal for you. 

The language reminds me of that coming from a payday loan company, only in this case, in return for their too-little money they want the keys to your house.

I would suggest that if you get one of these aw-shucks postcards, you give the “opportunity” a pass, however urgently you need to sell your house. Because while I don’t think any of us know quite what to expect in the Kingston real estate market this year, I also think we all know that it will continue to be a strong seller’s market for the foreseeable future. Houses sell here in days not months. And priced appropriately they tend to sell for above market value. 

I’m not saying you should call us, necessarily (though we’d like that), just that you shouldn’t give your place away just because you think you’re in a tight spot. Truth is, right now you are very much in the driver’s seat. And I really believe that exposing a house to the open market is the best way for any seller to realise its full value, even taking into account the commission costs involved. Explore your options and protect your investment as best you can, that’s all I’m saying.