Selling home to an investor regret help!

[Michelle Harbeson]

Just noticed I could add more so I want to list now on the market with an agent. I feel take. Advantage of by investor. Appraisaer only listed crappy comps didn’t bother to check if neighbors home sold way over asking price. It was the same day the report was issued to the buyer. Investor says to bad or I’ll sue. Under contract I have a permit to get and duct work to finish. Could that be my loop hole? Thank you on California I’m a wreck! 

[Charlie MacPherson]

@Michelle Harbeson  There's not enough information here to say for sure, but on the surface, this sounds like another example of a wholesaler screwing a seller.  Screwing people is the wholesaler's stock in trade.  It's the only way they make money.

You need to find out if this is an unlicensed wholesaler.  If it is, you may be able to get out - but you'll need an attorney's advice.  If he's licensed, there may be other ways to kill the deal.

Wholesaling without a real estate license is illegal in almost every state.  The theory I'd bring to your attorney is that a contract formed for an illegal purpose is void at its inception.

The other thing you might try is using "fraud in the inducement".  That tort law says that if someone causes you to enter into a contract without both the intent and ability (money) to follow through to completion, they have committed fraud.  You could threaten to counter sue them for that - but again, your attorney's advice is critical.

Investors, whether wholesalers or not, need to get your house at a discount.  You will always do better by putting it on the open market. That means a real estate agent who is a fiduciary to you (the investor most certainly is not) and marketing through MLS, social media, PPC and whatever other channels they use.

I'd take a close look at the appraiser.  Was that person licensed?  Or was it the investor's buddy who is only working to drive the price down?

Whether comps sold above asking isn't a factor.  It's the amount they sold for that matters. 

Comps should be very close geographically - less than a mile but preferably within 1/4 mile.  They should also nearly identical in the number of beds, baths, sq ft of living area, garage, basement, acres, style, age, etc.  I have seen bad appraisals, but they're fairly rare.

Good luck!