Beware of FRAUD in this Hot Market

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The one thing you hear a lot from potential buyers is, “Why do I need a buyer’s agent to represent me? I’ll just make an offer with the listing agent!”

Let me give you five simple reasons why that is not a good idea:

F-R-A-U-D!  

Just this last week I caught two listing agents and their sellers pulling pest report inspection shenanigan’s.

The first listing agent/seller didn’t have the pest company  bid the dry rot repairs in the report. This makes the pest repairs look far less expensive then they actually are. If you do not know how to read pest reports and you rely on the seller and their listing agent-you could be on the hook for thousands of dollars in repairs after you buy the home! Surprise! You’ve been cheated.

In the second instance the seller and their agent want to sell the property “As Is” after having remodeled it, Red Flag #1. It has been in escrow and fell out, Red Flag #2, The Pest report stated that there was no access door to inspect the sub area under the house, RED Flag #3! The whole house inspection attached to the MLS listing showed that the whole house inspector had been under the house and took very good color photo’s of all the dry rot and damage there, RED FLAG #4!!!! A Quick offer, a quick sale and an equally quick regret for buying!

In both these cases subtle subterfuge had been used. Many newer agents don’t have the experience to spot this malarkey, and most buyer’s on their own just relying on the listing agent to represent them too have no clue.

So, be safe out there, don’t let this Hot Market burn you by not having your own experienced Realtor to represent only you.

Why so many price reductions lately?

99 Price reductions today in Red, 441 new listings in Turquoise.
Presently most properties are selling and appraising around $40,000 above the most recent comparable sales going back to November/December 2020. With the right buyer sometimes $60,000! No agent can really peg the market on what any house will actually sell for right now, making pricing property extremely difficult. It is just crazy! It is always best to list a property a little under where you feel the market is presently and then let the bidding war begin, subject always to the appraisal and if any buyer is willing to offer appraisal insurance, paying above the appraised value out of pocket then Bingo! The seller’s really win!
But, listing agents need to GET THAT LISTING! So they overpromise to get the sellers to sign the listing agreement, that has no cancellation clause by the way, and then let the reality of the market condition the sellers. This of course is a fraudulent practice that happens every day in real estate, but it works! Sellers are sometimes a bit greedy and want the most they can get so they fall pray to the unscrupulous agent willing to tell a few fibs to get that listing.
Sadly, in real estate sales, agents that are honest and upfront are usually poorly rewarded. Seller’s think that if they shop agents they will get just the right one that will get them the most for their property! Now some agents know how to price property just right to help entice bidding and they are good at valuing property, like myself, but it is usually the agents with the “best” sales personalities and with a good spiel promising the highest sales price that gets the listing most of the time.
That is why you see a high rate of price reductions lately because of these agents overpromising causing them to under deliver, but “what the heck,” they got the listing and the sellers are stuck. Honesty is not rewarded while dishonesty walks away with the commission check every time.
So, in real estate sales the system actually conditions agents to purposely fib and obfuscate if they wish to be very very “successful,” because sellers are conditioned to accept what they want to hear-I’ll win the jack pot! That is why the Real Estate Associations are constantly badgering agents with new rules and required ethics courses and those agents like myself who refuse to do fraudulent things to get that listing, unfortunalty suffer with less business.
I’d rather be known though as the agent/broker with impeccable integrity being truthful to all my clients, then the smarmy sales actor who wins by lying and cheating them- At least I sleep a lot better.
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