Widow lists her house for sale, investor offers $50,000 more than market value without looking at the lot and is horrified to see it when the deal is done

Warren Buffett, arguably the greatest investor of all time, once said, “Seize the opportunity while you can.” This phrase is often quoted in courses for beginner investors, and it is so well remembered that people forget another equally wonderful quote: “Be skeptical. If something looks too good to be true…”

Investors in the market are always advised to be fast, like shooters in the Wild West, so as not to get ahead of the competition. Unfortunately, sometimes this leads to the fact that people in the pursuit of high-speed deals do not look at what they are buying at all. As a result, it is almost impossible to return at least the initial amount of investment.

A good example is this story in the MaliciousCompliance community on Reddit. The post with the description received about 18.4 thousand votes and more than 1 thousand comments. It is unlikely that all commentators were investors, but how nice it is when thoughtless incompetence is punished!

More information: Reddit

The neighbor of OP’s parents has lived in a large house in Florida with little or no renovation for the past 20 years.

Image Source: Images Money (not real photo)

So we’re talking about the neighbor of the original poster’s parents, who bought a 1/2-acre lot with a large house in an up-and-coming Florida area twenty years ago for $130,000 with them. The house was large, but without a swimming pool – although only the roof had been repaired over the years. Everything else remains the same as two decades ago.

Image Source: dodohead9743

The owner of the house became a widower and decided to put the house up for sale for $400,000.

Some time ago the owner of the house became a widower. She realized that she was uncomfortable living alone in a big house, and decided to put it up for sale for $400,000. A few days later, she was contacted by an investor from California, who offered another $30,000 on top – the main thing was that she quickly removed the house from the auction.

Image Source: dodohead9743

An investor in California offered her $430,000 to take the house off the auction as soon as possible without even looking at it.

The neighbor, well aware of the condition of her house, cautiously asked if the potential buyer would like to inspect the house. The investor, in turn, said that she would still like to rent it out, so she needed to get the rights to the house as soon as possible, so she is ready to deposit funds with the management company, and the owner can receive them in exchange for the property. keys.

Image Source: dodohead9743

The owner, of course, agreed, but the buyer soon found out that the house needed at least to be painted.

The woman thought … and, of course, agreed. According to the OP, the total cost to the investor was around $450k. A few days later, the former owner received a call from the same investor saying that the house urgently needed painting – and that she would like her to take care of the matter.

Image Source: dodohead9743

The former owner refused to deal with this issue, so the investor definitely lost a lot of money.

The answer was quite predictable – the former owner reasonably objected that the house no longer belongs to her, and the problems are not hers either. According to the parents of the OP, after some time they saw an ad for a house for 430 thousand dollars, but there were not so many people who even wanted to look at it.

Image Source: Daveynin (not a real photo)

People in the comments recalled many similar stories of incompetent investors.

Commentators noted that the owner of the house acted quite logically – if you are offered money above the market value, you must definitely take the money. People add that those who have a lot of money do not always know how to invest wisely. As it turned out, there are many examples when large investments turned into a complete failure.

However, some point out that in Europe a twenty-year-old house is considered brand new, so the situation is quite different in the US. On the other hand, the investor frenzy is the same in every country. And perhaps the funniest comment is advising OP’s neighbor to buy this house for $390,000.

We, for our part, will be glad to read your opinion on this situation, or to get acquainted with a similar story. After all, to paraphrase another Warren Buffett quote, “comment is what you pay, respect is what you get.”

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