Home : Blogs : Tina Maraj Fullerton Realtor : Tina's Real Estate Blog

Real Deal or a Scam?

Today I had what looked like a legitimate offer on one of my listings turn into what appears to be a scam. I received the strangest counter. The buyers agent asked my clients to take $100,000. More than the list price and credit them that amount through escrow so that the buyer would not have to obtain a high interest construction loan. The first though that entered into my mind was "isn't that iillegal"? fortunately I did't spit that out I just paused.

I did question how would the property appraise? The buyers agent explained that he has an appraiser that can use a "Future Value Projection" and that he does it all the time. Secondly I responded, I don't think any seller would want to sell at a lower price if indeed an agent cold get it to appraise higher. I also added I would have a hard time trying to explain the entire shady looking transaction to my sellers. Am I just naive or are deals really being done this way, and if they are is it illegal?

Posted by Tina Maraj Fullerton Realtor on 02/08/2007 05:52 PM

Comments (9)

representing sellers, orange county, fullerton real estate, artesia real estate, tina maraj shah, representing buyers

This post has been included in California Information Orange County, CA Information

9 Comments on Real Deal or a Scam?

FEB

2007

It is a scam, and avoid it! I have heard of people trying to give cash to the seller to keep the 'sales price' down to avoid being accessed at a higher tax rate. How a lender would agree to a buyer receiving $100,000 in credits is unheard of, when for the most part my files get flagged for miniscule repair credits...I would love to know more...so we can watch out for things like this. I would say, you are a professional...remain so. Regardless of the market, find another buyer. Advise your seller they are better off without this buyer. I see nothing but problems in the future

Tina, deals are done that way BUT they are ILLEGAL and punsihable by prison time. Do not partricipate and tell your seller to do the same. It is not a grey area. Good job on spotting it for what it is.

Well, anytime I hear, "HE DOES IT ALL THE TIME", I can pretty well predict it's a scam.

Lenn

Tina,

I have heard of this before and we just discussed this during an office meeting this morning. Its a scam, after you accept the contract and obtain delivery, at some point the buyer will come back wanting something major like to raise the list price in MLS, and probably want to extend the close of escrow date due to financing. Be very cautious! One good way to quickly find out is counter with a 3% non-refundable EM deposit or for a lower price home a minimum of 5k EM money. If the buyers agent screams clearly explain your concern and that you are protecting your client and their interests. If your buyer is legite you will find out quickly. I do believe it is a scam.

A scam....stay far away! I can't believe what people will try to get away with!

Thank you for your comments. I was worried that I was not being aggressive enough in trying to sell my listing even though my gut feeling said. This is BS! Tina

FEB

2007

Yep, it's a scam.

But it sounds like your listing may need some remodeling.

If so, there are special loans out there that will allow a buyer to rehab a property as part of the deal. It is all done with the underwriters approval and oversight. You often have to shop around for these loans because not all brokers do them, they are a lot of work and require more time for everyone involved. In my area I found one loan officer and only one that is experienced with these loans.

When I list a house like that, I ask her to put together a financing scenario that I can leave at the property so potential buyers can know about this option. Sometimes you can even do addtions to the house with this type of loan.

I've seen companies that buy homes, then remarket them at an inflated price, offer to owner finance and sucker the buyers in. What I'd like to know, is how do we stop them?

FEB

2007

Now the agent that submitted his offer has changed it again. His buyer still wants the property and he will pay OUR counter price and do a "traditional transaction". I have had antother offer presented in the meanwhile but the price was not as high. I am still skeptical but in the best interest of my sellers I may go with this offer and stay totally on top of the agent. Wish me Luck Active Rainers!

Tina

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?