Money expert Clark Howard says people buy and sell homes all the time, but most unsolicited offers are best left alone,
Clark says he’s in an especially privileged position in owning multiple homes free and clear. “And so I get solicited every single week — multiple solicitations — asking me if I’m willing to sell this home or that home,” Clark says.
Are you among the many homeowners who continue to get solicitations from people looking to buy your home? The article will tell you what those solicitors are really after and why you should beware.
Why Am I Getting Unsolicited Offers To Buy My Home?
“This has become a dare-to-be rich thing where people are trying to score big and they’re coming to you saying, ‘Hey, I’d love to buy your home.’” Clark says. “They’ve never seen your home. They just know it has a lot of equity in it and that you own it free and clear. And they’re hoping that you’re looking for the easy button.”
Let’s break down a few of the factors at play behind the unsolicited offers to buy your home, according to Clark.
Housing Shortage
There is an ongoing housing shortage that continues to create demand for homes across the United States. By some estimates, that number is between 4 million to 7 million homes.
Because the scarcity of affordable homes has created such a competitive real estate market, you’re likely to hear from people trying to lure you away from your dwelling for the right price.
Many Americans Own Their Homes Outright
According to Bloomberg, the share of American homeowners who are mortgage-free is at an all-time high. In 2022, nearly 40% of U.S. homeowners owned their homes free and clear, the newspaper reported.
Mortgage-free homes translate into thousands and thousands of dollars in equity for prospective home-buyers — and they want to tap into it.
“For every 1,000 solicitations they send out, they may get a response from a couple of people and if they’re really lucky, one of those people will say, ‘Yeah, I’ll sell it to you,’” Clark says.
Home Values Are On the Rise
Because of the increase in home values from 2019-2024, there are a lot of homes that have mortgages but also have quite a bit of equity. Home prices across America have skyrocketed 54% since 2019, according to the Washington Post.
But should you sell to someone who contacts you out of the blue about your home?
Seller Beware: What To Know About Unsolicited Home Offers
Clark says people who contact you to buy your home aren’t doing anything illegal, so that’s not a concern. There are some issues though:
They Want Your Home for Cheap
“Let me tell you, it’s going to be a lowball offer,” Clark says, referring to people who contact you about your home. “Nobody’s getting up in the morning saying, ‘I’m going to be a hero to this individual who owns their home free and clear and has all that equity.”
Instead of taking an offer from a home investor, you should take a few minutes to find out what your home is worth yourself. You can tap into some resources from a real estate professional (more on that later) or you can check out a few online sites like these:
They’ll Want To Speed Through the Homebuying Process
With a cash seller, which is typically how an unsolicited offer wants to pay, the buyer won’t be interested in comps (comparable home sales) and market trends or any fixes to the dwelling. They want the home as-is.
The reason they want to hurry through the transaction is because they don’t want the deal to fall through — the quicker, the better for their wallet and the worse for yours.
On the other hand, Clark wants you to slow down and do it right: Get an agent.
“You want to go through the normal process of potentially interviewing agents — and if you say, ‘I don’t like agents’ — let me tell you, if you’re paying an agent 3% to market your home because you don’t want the hassle of it, that’s a cheap 3%,” Clark says.
You’ll Likely Feel Taken Advantage Of
Clark says that while these solicitors aren’t criminals, “you may feel that you’ve got taken when later on you realize, ‘Uh-oh, my home was worth X number of hundred thousand dollars more – or whatever the number is – than what I took.’”
That's why it's vital that you know your home's value before you sell.
“You can always take a cash offer that came in unsolicited,” Clark says, “but before you do, you want a sense of fair value.”
A real estate agent can help you price your home based on the current real estate market. Once you know your home’s worth, if you want to proceed with a cash offer – and it makes sense – Clark is all for it.
Bottom Line
Clark says there’s nothing inherently wrong about solicitors trying to get you to sell your home at a below-market price, but you need to go into the process with your eyes open.
“Because once you agree and you sell, and later on you realize, ‘Oops, I left all that money on the table,’ it’s too late,” Clark says.
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