Selling to Progress Residential.. too good to be true?

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Selling to Progress Residential.. too good to be true?

Andres Rossini
Investor · Phoenix, AZ · Member since 2014 · 51 posts · 14 votes

I just placed my home in the “coming soon” status. Progress Residential sent me an offer $25k over asking and buying as-is (I haven’t even posted pictures tires). Looks like a massive rental company. But sounds too good to be true. I can’t find much in google about them buying houses, but lots about being landlords.

Any advice?

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Jennifer Lyles
Real Estate Broker · Atlanta, GA · Member since 2021 · 52 posts · 41 votes
5y

@Andres Rossini  We sell quite a few rentals every year to Progress Residential.  There offers are always at asking or slightly over asking and close quickly.  We've never had an issue and they've been very easy to work with over the years.  

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  • Joe S.Pro Member
    Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
    5y

    What does their offer say? As in what out clauses does their contract have to give them a reasonable door to renegotiate the price? 

    1Reply
  • Nick Robinson
    Rental Property Investor · Murrieta, CA · Member since 2020 · 338 posts · 343 votes
    5y

    @Andres Rossini

    I have no idea about Progress Residential but I think a big question is what are the terms and how quick do you want to sell your house.  I assume your house will be sold in a week-2 weeks in the open market so I would just list it and have that in my back pocket.  What are you planning on doing with the proceeds?

    0Reply
  • Michael King
    Rental Property Investor · Navarre, FL · Member since 2019 · 913 posts · 640 votes
    5y

    Where did you advertise and how can I get a hold of them? They need to come buy some from me.

    0Reply
  • Andres Rossini
    OP
    Investor · Phoenix, AZ · Member since 2014 · 51 posts · 14 votes
    5y

    @Joe S. I can't seem to find anything too funky in the offer. They just put a few clauses about making sure this home can be rented out and that the HOA doesn't have any restrictions against that. And also kind of odd... it says that if they find out that the home is built with block they can cancel and get their earnest money back. Luckily this is an al wood house but they probably got burnt in the past and they just copy and paste their offers. Looks like they have a massive operation going on.

    0Reply
  • Andres Rossini
    OP
    Investor · Phoenix, AZ · Member since 2014 · 51 posts · 14 votes
    5y

    @Nick Robinson they want 10day due diligence and 25 day close. They say they will not ask for repairs after inspection and no appraisal. 
    The proceeds will be used to develop a glamping site in the smoky mountains. We are relocating to that area this summer. Land already under contract. 

    1Reply
  • Andres Rossini
    OP
    Investor · Phoenix, AZ · Member since 2014 · 51 posts · 14 votes
    5y

    @Michael King I know right!! I just listed the house on my MLS this morning as "Coming soon". Looking to do an open house this Saturday.

    I had a lot of success selling my other 2 rentals with one open house each. I am loving this sellers market!

    0Reply
  • Andres Rossini
    OP
    Investor · Phoenix, AZ · Member since 2014 · 51 posts · 14 votes
    5y

    @Joe S. I think your advice of clauses is the key to understanding this offer. I will ask my broker to review this offer with me tomorrow to make sure there is no funny business. 

    0Reply
  • Jennifer Lyles
    Real Estate Broker · Atlanta, GA · Member since 2021 · 52 posts · 41 votes
    5y

    @Andres Rossini  We sell quite a few rentals every year to Progress Residential.  There offers are always at asking or slightly over asking and close quickly.  We've never had an issue and they've been very easy to work with over the years.  

    2Reply
  • Andres Rossini
    OP
    Investor · Phoenix, AZ · Member since 2014 · 51 posts · 14 votes
    5y

    @Jennifer Lyles That's awesome to hear!!! I am just worried to get under contract and then they ask for something like a discount. But I really appreciate your feedback. In the past I had OfferPad come give me quote and it was a joke. They gave the offer and then wanted a $55k discount for repairs. 

    1Reply
  • Scott Bowman
    Member since 2020 · 2 posts · 0 votes
    5y

    @Andres Rossini Any update on working with them? I just received an offer from them as well that looks great on paper.

    0Reply
  • Andres Rossini
    OP
    Investor · Phoenix, AZ · Member since 2014 · 51 posts · 14 votes
    5y

    @Scott Bowman I am now under contract. My broker told she knows a bit about them and no issues. 
    then I went to their website to see what houses the have for rent and they have one coming soon in my neighborhood. So I called the agent that sold that house to progress Residential and asked if there were issues. She said closing was smooth abs they didn’t ask for any repairs  

    So they seem to check out. Looks like they have deep pockets and want to own everything in a few areas and then they can basically control the rental market in that area. 

    Did you get a similar offer to mine? Over asking, no contingencies, no repairs, non refundable earnest deposit? I am waiting to close but it’s going well so far 


    0Reply
  • Matthew B.
    Investor · Howey in the Hills, FL · Member since 2013 · 376 posts · 114 votes
    5y

    I sold a flip to them earlier this year with zero issues. They paid all cash, $15k over what it would have appraised for at the time.

    0Reply
  • Ethan Neumann
    Real Estate Broker · Raleigh, NC · Member since 2021 · 80 posts · 62 votes
    5y

    Spend a little extra $ and have an attorney look over the contract to make sure there's nothing odd, but it sounds like they may be a part of a hedge fund/REIT. These groups typically will buy anything, and everything, as long as the numbers make sense for them. I would jump on it as long as your attorney gives you the greenlight. Groups like this can typically be the easiest to work with!

    0Reply
  • Jeff C.
    Real Estate Broker · Bakersfield, CA · Member since 2018 · 269 posts · 597 votes
    5y
     @Andres Rossini:



    How is this moving along? I've just received an offer from them as well. I too was skeptical. My due diligence led me to this thread.

    0Reply
  • Scott Bowman
    Member since 2020 · 2 posts · 0 votes
    5y

    @Jeff Cagle @Andres Rossini They had a no septic tank contingency so we ended up not going under contract. Thanks for the responses.

    0Reply
  • Andres Rossini
    OP
    Investor · Phoenix, AZ · Member since 2014 · 51 posts · 14 votes
    5y

    @Jeff C. I received the BINSR yesterday, no repairs were requested, just like they said in the contract offer. Closing is tomorrow. Everything looks good for now. They came and did the inspection last week, along with the roof inspection. 

    They told me to leave the house in broom swept condition or better. And I noticed their offer letter said to convey the fridge but not the washer and dryer so I sold those on the last day for some extra cash. On their final instruction to me, they told me to remove any washer and dryers... my guess is that as a landlord, they want the tenants to get their own Washer and Dryer, one less thing for the landlord to worry about.

    I moved out 2 days ago, they are doing their final walkthrough today.

    I will know tomorrow done once the deal is 100% complete.

    But so far so good. Very easy and fast communication.

    1Reply
  • Adrienne Cheng
    Member since 2021 · 2 posts · 0 votes
    5y

    Hi @Andres Rossini did you close smoothly? We got an offer from them some time earlier and signed after review the offer. However ever since we under contract, the buyer agent stopped replied to our messages. Did that happen to you? They wanted to extend the inspection and just sent an email and not replying to ours questions….. 

    0Reply
  • Andres Rossini
    OP
    Investor · Phoenix, AZ · Member since 2014 · 51 posts · 14 votes
    5y
    Originally posted by @Adrienne Cheng:

    Hi @Andres Rossini did you close smoothly? 

    Yes closing went very smooth! It seems that this may be an agent problem and not a buyer problem. We had no issues at any step of the way. It was great a great experience. 

    Hope things turn out good with your sale 

    1Reply
  • Adrienne Cheng
    Member since 2021 · 2 posts · 0 votes
    5y

    @Andres Rossini thxs for this info, it sure makes me feels more comfortable with my current situation!! 

    0Reply
  • Daniel Garland
    Member since 2021 · 1 post · 1 vote
    5y

    I too received an offer from Progress Residential.  I was looking for this exact thread because it did seem too good to be true.  They offered me my asking price which was on the high side and then came up a little further to cover commission so I was skeptical.  The agent I spoke with said they very rarely come back after inspection asking for money back for repairs.  Glad to hear it has worked out for you so I will likely accept the offer now.

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Andres Rossini:

    @Joe S. I can't seem to find anything too funky in the offer. They just put a few clauses about making sure this home can be rented out and that the HOA doesn't have any restrictions against that. And also kind of odd... it says that if they find out that the home is built with block they can cancel and get their earnest money back. Luckily this is an al wood house but they probably got burnt in the past and they just copy and paste their offers. Looks like they have a massive operation going on.

    Out of sheer curiosity why Block..  in many markets  think FLA  Block homes are more sought after than wood framed ?? 

    or like Chicago Brick homes are more valuable than wood framed..  Just curious Why block home would be an issue there in the desert is it just a stigma of cheap built or something.

    I get offers all the time from these I buyers or wholesalers.. there is one company out of New York that will offer way higher just to get into contract and they want to wait 30 days to deposit EM etc etc..  just another wholesaler trick trying to find unsophisticated buyers.

    But I did just sell a home in Jackson ms to a newer hedge fund and they in my mind paid a premium for it .. far more than a local investor would have paid so I jumped right on that one and closed it up.. 

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    1Reply
  • Sue OHalleran
    Member since 2021 · 2 posts · 0 votes
    5y

    @andresrossini Andres,  do you have an agent contact name or number for selling your home to progress? I’m not able to find contact information online.  Thank you. I’m looking to explore selling my home to them and I am in Arizona

    0Reply
  • Doug McVinuaPro Member
    Property Manager · Queen Creek, AZ · Member since 2016 · 608 posts · 426 votes
    5y

    @Andres Rossini We have sold a few to Progress as well and for the most part, it has been smooth. You may need to push back here and there with them but overall it went decent. The last one was in Chandler, AZ, and I sold that 10% over what appraisal likely would have been.

    Progress is very specific in what they want to purchase, if you fit in the box great, if not they aren't interested.

    The market in Phoenix is still strong, put one under contract last night at list price. The trend shows the inventory creeping up slightly so who knows exactly what the next 6 months to a year brings but we are seeing some change in the Arizona market conditions. Rental demand is very strong, we have demand that far exceeds supply, and rents are up.

    [email protected]602-751-7577
    1Reply
  • Sue OHalleran
    Member since 2021 · 2 posts · 0 votes
    5y

    @Doug 

    @Doug McVinua Hi Doug - do you have contact info for a Progress agent you can share? 

    0Reply
  • Huyen Mai
    Member since 2021 · 1 post · 0 votes
    5y

    Appreciate the information on this thread.  

    I also got an offer for my house in FL.  In the offer, it has this statement:  "At any time prior to the close of escrow, Buyer may unilaterally assign its right, title and interest in and to the Agreement without requiring acceptance or agreement of the Seller."  Did you have this statement in your offer and will this be a concern or issue?  Thanks.

    0Reply
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