Companies offering fast cash for houses — with promises of no Realtor fees and quick closings — are popular. But there’s no regulatory oversight and a Hamilton-area woman says using the “quick sale” option was a costly mistake.Laurie Thompson stands outside the townhouse she sold in Smithville, Ont. The cash-for-houses company that handled the sale walked away with $60,000.
"You're not going to get fair value from a company that's paying you in 72 hours," she said. "But … I didn't want it to sit on the market for three to four months." An internet search by Go Public found house-buying companies that make cash offers in all provinces and territories. They make similar claims — offering a lifeline to people who've suffered a death in the family, are facing foreclosure, divorce or mounting debt.
Thompson was about to learn that promises of a quick sale at the negotiated price were not going to materialize."I thought I sold my house to him, right there," said Thompson. "Done deal." Thompson said the fact that the contract could be assigned to another buyer was news to her — there was no language explaining that was allowed.
"You don't need any upfront capital," says Rabidoux. "You need nothing except an ability to blanket a town with thousands of these letters … it's crazy economics." Thompson and her mother, Irene Pratt, sift through emails and documents they’ve kept track of since Thompson signed the contract with Honest Home Buyers.
Three weeks later, Chow flipped the house to new buyers, who paid $610,000 – $60,000 more than Thompson's contract, which he pocketed.