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Home > Archive > Real estate forum > June 2005 > Is there something fishy about this transaction?
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Is there something fishy about this transaction?
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| miamicuse 2005-06-16, 1:58 pm |
| Earlier this year I saw a property I really like, it was listed at 672K.
After several visits, I decided to make an offer, and after my agent (not a
buyer agent, but a transaction agent) gave me some comps I went and figured
a starting offer of 625K. My agent agreed this is a reasonable offer and we
prepared an offer. The offer has NO contingency other than the right to
inspect, loan has already been pre-approved, it's squeaky clean.
She went to the seller agent's office and called me from there, saying the
seller's agent has an explicit instructions from the sellers to reject any
offer lower than 650K immediately. Since 650K was more than what I am
willing to pay, I move on and did not think twice about it. Was my offer
too low? may be, may be not.
Last week I was looked up the county's records and found that the property
was sold for 500K. On the same day a mortgage of 499950 was taken by the
buyer.
How can a bid for 625K be rejected and two months later sold for 500K? How
can this happen?
A friend of mine suggested that may be 500K is the amount on paper, but the
real transaction could have been 650K, with 150K paid in cash to the seller
directly and a lower official sale amount will keep property tax low. Is
this possible? with the selling agent from Coldwell Banker, can the seller
and buyer actually work a deal like that and Coldwell Banker will go along
with it? Not to mention the seller agent will get a lower commission
because of it?
Another possibility I was given, was that the neighborhood was predominantly
Jewish, and may be the agent or owner just did not want to sell it to me to
keep the homogenous neighborhood? Is this likely? To take a 125K hit for
this (or more since that was not my real bottom line).
Can someone suggest a revenue I can use to find out the real reason. I need
to know what lesson to learn from this, and if there is an agent I should
not do business with in the future.
Thank you for your attention.
MC
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| Jim Donohue 2005-06-16, 1:58 pm |
| Hey...you could make a true hobby project out of your real estate dealings.
First they did not have to sell to you even if you offered list. There just
is no requirement that the seller sell. The Offer proposes to establish a
contract and, until it is accepted, it is all just words and advertisements.
However there are requirements to present offers and procedures to turn them
down. And even the Code of Ethics ones can have the force of law if
willfully violated. I don't know the Florida procedures but you might want
to find out. You might well have some action against your agent or the
other or both.
Next though this smells of something ugly going on. But it is not clear
that you were really the injured party. Now if you go off and stick your
broom into this hornets nest you may even get stung. If the seller was
victimized he may well shake your hand. If the state was victimized it is
doubtful your help will even be acknowledged. If your role becomes known
the loser may sue you for interfering or some other charge of malicious this
or that. So don't poke hard until you took to a local lawyer and assure you
are not taking an unreasonable risk.
Funs things to do might include getting your Transaction Broker to sue for
her commission. You may have trouble showing you were harmed but she may be
in much better shape. And who knows what you will learn in pushing such a
conflict.
Lessons Learned...
Get it in writing. Particularly if they don't want to put it in writing. I
will bet 10 bucks you do not have a copy of the sellers agent instruction to
turn down offers less than...
Don't hire TBs for free lance missions. Get some mean old broker who will
do buyers agency. Then you can at least holler at him if he screws up. And
if you pick the right person he will drive the other side to drink before he
lets you get screwed by some operator.
Few Jews that I know would willing sell a proper at $500K if $625K was
available...even if it screwed up the neighborhood a little after they left.
Keep feeding us...you make for some wonderful threads.
Jim Donohue
"miamicuse" <nmbexcuse@hotmail.com> wrote in message
news:UKSdnR3KecxAtx3fRVn-2w@dsli.com...
quote:
> Earlier this year I saw a property I really like, it was listed at 672K.
>
> After several visits, I decided to make an offer, and after my agent (not
> a
> buyer agent, but a transaction agent) gave me some comps I went and
> figured
> a starting offer of 625K. My agent agreed this is a reasonable offer and
> we
> prepared an offer. The offer has NO contingency other than the right to
> inspect, loan has already been pre-approved, it's squeaky clean.
>
> She went to the seller agent's office and called me from there, saying the
> seller's agent has an explicit instructions from the sellers to reject any
> offer lower than 650K immediately. Since 650K was more than what I am
> willing to pay, I move on and did not think twice about it. Was my offer
> too low? may be, may be not.
>
> Last week I was looked up the county's records and found that the property
> was sold for 500K. On the same day a mortgage of 499950 was taken by the
> buyer.
>
> How can a bid for 625K be rejected and two months later sold for 500K?
> How
> can this happen?
>
> A friend of mine suggested that may be 500K is the amount on paper, but
> the
> real transaction could have been 650K, with 150K paid in cash to the
> seller
> directly and a lower official sale amount will keep property tax low. Is
> this possible? with the selling agent from Coldwell Banker, can the seller
> and buyer actually work a deal like that and Coldwell Banker will go along
> with it? Not to mention the seller agent will get a lower commission
> because of it?
>
> Another possibility I was given, was that the neighborhood was
> predominantly
> Jewish, and may be the agent or owner just did not want to sell it to me
> to
> keep the homogenous neighborhood? Is this likely? To take a 125K hit for
> this (or more since that was not my real bottom line).
>
> Can someone suggest a revenue I can use to find out the real reason. I
> need
> to know what lesson to learn from this, and if there is an agent I should
> not do business with in the future.
>
> Thank you for your attention.
>
> MC
>
>
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