Don't Fall Victim to Market Predators

We've witnessed some pretty grotesque things happening lately. Price gouging, predatory pricing, false advertising, amongst other things. It's gross, it's harmed people we know, and we're not here for it. With that in mind, the best prevention methods are awareness and education. So, let's talk about it. Hopefully, you can take some of these tips and feel empowered to avoid scams and market opportunists.

Recently, a couple shared with one of our agents how expensive their last HVAC repair was. $14,000ish to replace a component within their unit. What they didn't know? It was a $400 part and even taking astronomical labor charges into account, they were significantly overcharged. A lot of us have had people mention repair costs to us recently that have made us cringe.

How to avoid being taken advantage of? We've got some tips!

• Get at least three quotes from different companies. You get what you pay for, but if you have three quotes around 5,000 and one for 15,000...red flag.

• Check reviews. Look online at the Better Business Bureau, Third Party websites, Google, and Facebook business pages to see customer reviews. Don't give much weight to the testimonials they feature on their websites. Try to find the balance of quality work and fair pricing.

• Ask for a portfolio or examples of work, if applicable.

• Ask for an itemized quote. This also applies if charges are ever added after someone begins a project for you. Let them know that you need a breakdown of material costs vs labor costs. Research the cost of the materials needed. It will never hurt you to understand how much you are paying for supplies and how much you are paying for skill and labor.

• Encourage your friends and family members to do all of the above, to keep them from getting scammed too!

There are companies currently buying houses across the country. Some of them have advertised instant payouts, saving money over traditional listing, closing in a week, etc. Some of them have settled multi-million dollar lawsuits for misleading sellers. Here are a few tips if you are considering going that route:

• Absolutely do the math. One of our agents was called out to run some numbers for a potential seller. They shared what a big name company offered them and all of the fees associated. After advertising that it would save them money over listing, their general fees coupled with repair fees were almost $30,000. The sellers declined and paid to have all needed repairs done. Afterwards, they requested a new purchase quote. Despite having addressed all needed repairs, the $30,000 in fees was unchanged. Based on comps, they would have netted much more listing, not even factoring in market competition. The truth is in the numbers.

• Always, always, always read what you sign. We had a different seller come to our company after she lost a house because a buying company pulled out of purchasing hers, at the last minute. Their contract protected them and she lost the house that was contingent on her sale. Another company has saturated the market promising an instant payment just to agree to use them in the future. What happens to the sellers that forget and list their home with their nephew in ten years? They get sued for violating a legally binding contract. Read the fine print and if there are red flags, don't sign. Ask your attorney to review it. Ask your accountant what they think. Don't sign something you haven't read, ever.

These are just a few of the market horror stories we've heard recently. All shared with permission of our clients, to keep this from happening to others. Stay safe out there, friends.