offer of $400,000 from a couple. The buyers provided a proof-of- funds letter from a brokerage firm. The buyers’ extended family showed up for the home inspection, turning it into a festive gathering. 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 bought a rural home. Two years later, when she decided to list the house, she found out it had previously belonged to someone who had been incarcerated for producing methamphetamine on the premises! This revelation also required her to take the necessary steps to decontaminate the home and ensure it was suitable for resale, costing her an astounding $16,000 in the process.
Pressure to Sell from Your Own Agent
Homeowners were selling a starter home in Washington D.C. in the late 1990s. They were asking for $235,000. When they received a $226,000 offer with buyer demands that they cover $6,000 in closing costs, their agent urged them to strongly consider the offer. Ultimately, they sold for $228,000 while agreeing to the closing cost request at the suggestion of their agent. Before the housing crisis, homes in this neighborhood were selling for between $650,000 and $700,000. “Looking back, I felt like I was negotiating against three people—the buyer, his agent, and my own agent,” said the seller.
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