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One of my neighbors recently sold a house off market to a developer for $200,000 below market value.
He was the original owner from the 1950's.
He sold the house for $630k cash, and could have gotten at least $830k on the open market.
$830k with a 30 day escrow and mortgage is still way better than $630k in a 7-day escrow, wouldn't you agree?
I called one of these developers, pretending I wanted to sell my house, just to hear their sales pitch. They tell you all kinds of bulls*** to get you to sell your house to them for cash at undermarket value.
This particular developer was also a Realtor, and he was badmouthing other realtors to me over the phone. hahah.
What Code of ethics?
Because all the real estate brokerages here are members of the local realtor association, we are all required to become realtors and pay the fees. That doesn't mean anyone gives a crap about ethics if a big advantage is at stake.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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That old phrase "let the buyer beware" can also apply to sellers. The old guy still has $630k more than he did before, and no one twisted his arm. Anyone, realtor or not can make a similar offer to anyone, even you. Did you ever buy a new car and talk them down to below the asking price, which they could have gotten from someone else?
Maybe your neighbor didn't want to spend the time and energy marketing the property? Maybe they would have had to spend time and/or money fixing up the house? Maybe they knew the property wasn't worth more than $630?
Most people think their property is worth more than it really is. Maybe your neighbors were realistic.
Not sure what is funny about badmouthing other realtors?
So what is he planning to do, scrape the house and build a bigger one?
Yes. He will for sure knock it down and build a $2.5 million house.
Quote:
Originally Posted by 399083453
Do you think he didn't have the right to sell his house?
Sure he does. But developers try to trick these sellers into not selling on the open market, where there is more buyer competition.
These old sellers are not the most educated and they're gullible.
Quote:
Originally Posted by Charlotteborn
Most people think their property is worth more than it really is. Maybe your neighbors were realistic.
In this case, I am sure it was worth much more than $630k. I did a CMA.
Land value in this area is worth more than that. Developers have paid more for similar properties nearby.
Well, there's a lot less hassle going with the cash offer.....A ton. Let's see, no sales commissions (6%), no buyer closing costs, limited to no legal fees, no fixing up the home to meet market demands. No inconvenience of being kicked out of the home while buyers come over and pick it apart. No continuous cleaning that wears down the soul. I can't find any fault, other than he hurt your resale value. That, and the fact you will be dealing with construction traffic.
Darn shame the former property owners did not hire a real estate broker to expose their property to a wider audience than the developer or insist on an appraisal or two before agreeing to sell.
When stuff like this happens it potentially impacts the value of all similar close by properties.
Seems to me this owner was either a smart guy to take what he could get and he was motivated to sell....OR there was zero disclosure by this realtor/developer. Remember, just because you have a real estate license does not make you a Realtor.
Darn shame the former property owners did not hire a real estate broker to expose their property to a wider audience than the developer or insist on an appraisal or two before agreeing to sell.
When stuff like this happens it potentially impacts the value of all similar close by properties.
To this "old guy," maybe it wasn't about the money. In the last quarter of life, you stop worrying about how much money you leave to others.
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