I had a funny feeling about the buyer that called on a Thursday and wanted to see a house the next day and it would be a cash offer. Really, sounds to good to be true.
The listing agent said the sellers would be home to open the house. It was a very nice home on 23 acres listed at $199,000. So on Friday, June 6, I met the buyers at the property. The buyers said they lived in Lexington, KY, and wanted to buy this home for a friend. Buyer was soft spoken and very pleasant.
Buyer says he will pay cash for the home ($195K) and would use his inheritance to pay for the house. We wrote an offer on a home in Rainelle. The buyer did not have a check for the Earnest Money Deposit (EMD), $5,000, and was going to ask his dad, an attorney in Morgantown, WV, for the proof of funds and a check, and that he and his dad knew my brother-in-law who is a judge in Morgantown.
Since buyer did not have a check, his dad would get him the money and he would meet me at the bank to get a cashier's check for the EMD. Also, his dad would provide him a proof of funds statement from the bank. At that time, I informed him that the Broker will put the check into an escrow account. He was okay with that. But, my gut was saying something is wrong. He said he would like to close in 45 days and give the sellers time to move. Offer was sent. Sellers counter was to close in 15 days and rent back for 30. Buyer was okay with this counteroffer.
Buyer was suppose to meet me on Saturday morning to get the EMD and provide the proof of funds statement. When I called Buyer to confirm meeting, he was upset. His dad said he had never heard of someone cashing the deposit check, they usually hold it til closing. Buyer informed me that he had bought five homes and no one cashed the deposit check. As I told him the EMD lets the seller know that you are serious and not going to walk away from the contract. If you do, walk with no reason, the money goes to the seller......unless the seller agrees to release their EM. Then he goes off about closing early and the seller renting back for 30 days. I said you agreed to this change last night, now you want to close in 45 days. Buyer goes on and on and I finally say do you want to meet or think about this offer.
He says he will meet me at 10 am at my office. In the meantime I had to call the listing agent about the buyer's change of heart regarding the closing. Needless to say, buyers did not show. I called him twice and text him. Finally decided to call the the woman Beverly as I had her fax number. She answered...that told me they were not meeting with me. I asked to talk with Jason. He comes to the phone.... I say hello Jason this is Rebecca Gaujot... he HANGS UP on me. I then get a call from the listing agent. She says sellers do not want to entertain this offer and don't feel right about this buyer. So I text Jason and said Sellers do not want to go any further with this offer. I never heard from him.
On Sunday, at 6:30pm, I received a call from another Seller that has her home on the market for over $800K in Rainelle. She stated that some people stopped by their home and did not have a Realtor and wanted to see the home. Mr. Seller told them to leave and get off the property, and to make an appointment with a Realtor. The sellers said that the buyer used my name as their Realtor and called me while at the house, but that was a lie...he never called me.
I suggested to the Mrs. Seller to call the police. She did and gave the police the information and phone number that I had provided. Since Buyer had indicated that his father was an attorney in Morgantown, I decided to check into the veracity of that statement. I discovered after speaking to an attorney in Fairmont, WV, that the person he called dad had no male children. This furthered my suspicions of the Buyer.
Mrs. Seller called Monday morning and provided this info: The State Police in Rainelle found the buyers and friend in Charmco last night. They asked about a dog that they had in a cage and if they knew anything about the missing dog that was at the house they were at earlier in the day. They, of course, said no. The police told the buyer/friends that they are not to go on any property without a Realtor, and this behavior will not be tolerated, and that the police would be watching them. The State Trooper also said that Buyer is a convicted felon from Fairmont. So he has been through the court system and knows attorneys and judges. Good news for the sellers.... their dog showed up at their door later that night.
Cash offers do not happen too often. But my instincts were right and red flags started appearing when I met the buyers, not having a check on them, not wanting the EMD cashed, no proof of funds with them, changing closing dates, etc.
Listen to your instincts. I would rather lose a sale... then my life.
I sent out an MLS email to all Agents/offices to inform them about these people and a description of each. The Buyer said he found me on Trulia as well as the listings. I think they were looking for listings in secluded areas and senior sellers.
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