How predatory wholesalers can prey on Utah homeowners

Nov 5, 2021, 6:20 PM | Updated: 11:11 pm

SALT LAKE CITY — If you are selling your home in this market, you would expect to make money – not lose it. But an emerging scheme can leave homeowners trapped in a bad contract that can cost them thousands.

In this hot housing market, real estate professionals are working hard to drum up new business and claim their commissions. But it is also bringing a more sinister scheme to bare, says Erik Bildman.

“There’s a lot of people out there that are trying to take advantage of sellers,” he said.

Bildman is a vice president and general manager at a company called Sundae, a real estate marketplace that connects people looking to sell a home that maybe needs some work with investors looking to buy and flip those homes.

“The distressed properties — the properties that need a lot of work,” explained Bildman. “Those are much harder to transact.”

Because of that, Bildman says there has been a surge in what is called predatory wholesaling. A buyer makes an offer to someone who is desperate to sell quickly, then the buyer strings the homeowner along as they try to get the homeowner to knock the price down by claiming the home needs massive repairs. And because the house is under contract, the seller cannot simply walk away. So, those homeowners wind up lowering the price, or even sometimes paying to close the deal.

“They’ll try to point out anything and say that it needs replacement or work when it doesn’t necessarily need repairs,” Bildman explained.

According to Sundae, the average amount home sellers lose to predatory wholesalers is more than $17,000.

To avoid a predatory wholesaler, be sure you read and understand all the terms of a contract before you sign.

You should know your home’s value before signing any contract.

And if you are able, get multiple offers on your home.

KSL 5 TV Live

Top Stories

KSL Investigates

Photo of phone with Facebook app...
Matt Gephardt

Get Gephardt: Facebook gives little to no help to users locked out by hackers

More and more, Get Gephardt is hearing from folks who have been locked out of their Facebook accounts by a hacker. Unable to get help from Facebook and desperate to get their identities back, they don’t know where else to turn.
1 day ago
Matt Gephardt and Cindy St. Clair, KSL TV

Get Gephardt: Husband sued for deceased wife’s unpaid medical bill

Just about a year after his wife died of cancer, Keith Zipprich said he was surprised when he, himself, was slapped with a lawsuit from a debt collector trying to collect on one of her unpaid medical bills.
2 days ago
Proch pirates and doorbell cameras...
Matt Gephardt & Sloan Schrage

Get Gephardt: Why you cannot rely on doorbell cameras to thwart porch pirates

Over a third of us have been hit by porch pirates in the past year according to a new study from ValuePenguin.com.
2 days ago
With only days to go before Christmas retailers are hoping consumers will shop generously. (Photo b...
Matt Gephardt and Sloan Schrage, KSL TV

Gephardt Busts Inflation: The tricks retailers will use to get us to open up our wallets

Of the thousands of Utahns who shopped for bargains on Black Friday, many likely bought a lot of stuff they really didn't plan to buy. And as KSL's Matt Gephardt explains, that's all by design.
3 days ago
KSL TV's Daniella Rivera (left) and Unified police detective Doug Lambert (right)....
Daniella Rivera and Annie Knox, KSL TV

The gift you shouldn’t give car burglars this holiday season

Holiday shoppers are darting around busy parking lots this time of year. So are thieves. Unified police told the KSL Investigators there's a new number one hot spot for car prowlers, but some simple steps can make sure they don't get the better of you.
3 days ago
Matt Gwyther (left) and Dennis Rowley Gwyther (right). (Photo Provided By: Matt Gwyther)...
Daniella Rivera

How mental health staffing shortages are delaying justice in Utah’s courts

A Utah man waiting for justice after the 2019 murder of his husband says staffing issues at the Utah State Hospital have contributed to months of delays in court.
6 days ago

Sponsored Articles

notebook with password notes highlighted...
PC Laptops

How to Create Strong Passwords You Can Actually Remember

Learn how you can create strong passwords that are actually easy to remember! In a short time you can create new ones in seconds.
house with for rent sign posted...
Chase Harrington, president and COO of Entrata

Top 5 reasons you may want to consider apartment life over owning a home

There are many benefits of renting that can be overshadowed by the allure of buying a home. Here are five reasons why renting might be right for you.
Festive kitchen in Christmas decorations. Christmas dining room....
Lighting Design

6 Holiday Decor Trends to Try in 2022

We've rounded out the top 6 holiday decor trends for 2022 so you can be ahead of the game before you start shopping. 
Happy diverse college or university students are having fun on their graduation day...
BYU MBA at the Marriott School of Business

How to choose what MBA program is right for you: Take this quiz before you apply!

Wondering what MBA program is right for you? Take this quiz before you apply to see if it will help you meet your goals.
Diverse Group of Energetic Professionals Team Meeting in Modern Office: Brainstorming IT Programmer...
Les Olson

Don’t let a ransomware attack get you down | Protect your workplace today with cyber insurance

Business owners and operators should be on guard to protect their workplace. Cyber insurance can protect you from online attacks.
Hand turning a thermostat knob to increase savings by decreasing energy consumption. Composite imag...
Lighting Design

5 Lighting Tips to Save Energy and Money in Your Home

Advances in lighting technology make it easier to use smart features to cut costs. Read for tips to save energy by using different lighting strategies in your home.
How predatory wholesalers can prey on Utah homeowners