In this video, you will learn that free money is not free; it comes with an obligation that will cost you years later.
This question is not one I have been asked yet, but it is one that homeowners definitely should be asking themselves!
There is a real estate company out of Florida who has now set up shop in Oklahoma who is offering free money to homeowners who need it. They are giving people anywhere from $300 to $5000 in exchange for their notarized signature.
Here is the catch – actually multiple catches.
What they are signing is an agreement that should they sell their home in the next 40 years – yes, I said FORTY, they are obligated to hire the respective real estate brokerage to do so.
The agreement you sign goes with the property, not the owner.
So, let’s say you decide to stay in this home forever and you do. Your kids or heirs inherit the home. They are now also obligated to the brokerage (who no one really knows much about yet) to sell the home.
And finally, they (your family, heirs, or agents) may not even know about this document that is signed and filed at the county courthouse.
Let’s say you have forgotten about the measly $300 you got from this company 35-40 years from now. You (or your heirs) sell the house. It is at that point that your agent (the one you really like and hire because you trust them and they have been there for you for several years – or it’s your grandson, church friend, etc.) submits information for the title work to be done. This is when the abstract is brought up to date and searches for possible liens are done.
Keep in mind that by this time the agent you hired has already earned their commission (per their listing agreement). So, now, instead of paying 5%, 6% or even 7%, you are obligated to pay both companies to the tune of 3% extra, now making it a total of 8%, 9%, or 10% commission. And the company in question has done nothing to help you in the past 35-40 years – but you signed an agreement and they paid you cash money, so that is that.
Beyond the commission issue, no one really knows what the listing contract with this brokerage says or requires and it is not presented at the time of the initial agreement. So, essentially you are agreeing to a listing contract you have NEVER EVEN SEEN with a company who may not even be around in 2 years!
Assuming they are around when you decide to sell (or your heirs do), is the agent this company assigns to you the one you really want? At this point in time (as of this writing), the brokerage is located near the Tulsa area, so are they even familiar with OKC metro property? It would be rare.
You can tell from the tone of this post that we are not very keen on the idea of a friend, family member, neighbor, or client making a 40+ year commitment in exchange for a little bit of immediate cash. There are far better ways to accomplish this goal – just ask us if you are in that position.
If you are curious like us, you may be wondering what their end-game might be in “buying” up all these future listings. It is speculation (but it makes sense) that they will package them up and sell them to the highest bidder. Likely, it will be a brokerage (or multiple brokerages), an investment firm, or a relocation company. They, in turn, will sell the listings back to the local real estate agent.
This may not sound like a big deal to you as a homeowner. Having been in the real estate profession for 30 years, however, I can tell you that when they charge the agent a 35-40% referral fee for the privilege of being offered such listings, most experienced and successful agents will take a hard pass.
Agents who elect to pay these ridiculous fees are those who cannot successfully get business otherwise or who are brand new to the business and are trying to get started.
Is that really who you want representing you in the sale of one of your most valuable assets?
All we ask is that you PLEASE do your homework, ask questions, and get a second opinion before agreeing to any such arrangement with ANYONE. It may seem like a good idea in the moment, but chances are it’s because you don’t have all the facts.
Call 405.708.7010 or email us at myagent@buckelewrealtygroup.com and we are happy to discuss op
