A real estate agent was working for sellers whose house had sat unsold for several months. They were thrilled to get a cash offer for the $400,000 house from a couple. The buyers offered a proof- of-funds letter from a brokerage firm. The buyers’ extended family turned out for the home inspection. It was like a holiday open house. Later, the brokerage informed the agent that the proof-of-funds letter had a forged signature. The would-be buyers vanished. The agent now makes sure she verifies proof of funds and pre- qualification letters.
Homes Not Researched
In a transaction without the involvement of real estate agents, a woman purchased a rural home. She found out two years later, at the time she went to list the home, that it had once belonged to a person who was in jail for producing methamphetamine on site! The revelation also obligated the homeowner to take the necessary steps of decontaminating the home and ensuring it was fit for resale, costing her a whopping $16,000 in the process.
Pressure to Sell from Your Own Agent
Homeowners were selling a starter home in Washington D.C., circa late 1990s. They were asking $235,000. When they received a $226,000 offer with buyer demands that they cover $6,000 in closing costs, their agent prodded them into strongly considering the offer. Ultimately, they sold for $228,000, while honoring the closing cost request at the behest of their agent. Pre-housing crisis, homes in this neighborhood were selling for between $650,000 and $700,000. “In hindsight, I felt that I’d been negotiating against three people—the buyer, his agent, and my own agent,” said the seller.
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