Fraudulent Buyers
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 $800,000 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 title company informed the agent that the proof-of- funds letter had a forged signature. The would-be buyers vanished, and it appeared their extended family took some of the sellers' possessions during the "home inspection." Since then, the seller makes sure the "proof-of-funds" and pre- qualifying documents are verified.
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 onsite. 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 $36,000 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 $1,035,000. When they received a $1,006,000 offer with buyer demands that they cover $16,000 in closing costs, the buyer's agent prodded them into strongly considering the offer. Ultimately, the couple sold for $1,028,000 while honoring the closing cost request at the behest of their own agent. Pre-housing crisis, homes in this
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