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Old Yesterday, 11:15 AM
 
25 posts, read 10,020 times
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Does this ever really happen? Do buying and selling agents ever work together behind the scenes to dupe a buyer so that they can get an increased profit to share, or is this just paranoia? Anyone ever experienced this, or heard of it?

thanks

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Old Yesterday, 11:18 AM
 
Location: OK
2,738 posts, read 6,372,684 times
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I am sure that happens but when caught they will lose their license at a minimum
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Old Yesterday, 11:29 AM
 
Location: Raleigh NC
8,337 posts, read 6,554,271 times
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mostly paranoia.

let's say the total commission paid is 6%. Let's say they conspire and get the Buyer to pay $10K more than the Buyer should for a $200,000 house (that's 5% over, and pretty extreme). Let's even say the property doesn't appraise for the $10K more, but the Buyer's Agent convinces the Buyer to pay the $10K out of pocket.

The total ill-gotten take for the agents is $600. And that's just 5% of the total.

Would YOU do something unethical and for which you could lose your livelihood for a 5% gain from 1 paycheck? If yes, then yo should believe there's a large number of folks like you who would also take that risk. If no, then understand that there's nothing special as human beings about Realtors and the vast majority of them are honest just as you are.
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Old Yesterday, 11:50 AM
 
Location: El paso,tx
1,643 posts, read 652,021 times
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Quote:
Originally Posted by BoBromhal View Post
mostly paranoia.

let's say the total commission paid is 6%. Let's say they conspire and get the Buyer to pay $10K more than the Buyer should for a $200,000 house (that's 5% over, and pretty extreme). Let's even say the property doesn't appraise for the $10K more, but the Buyer's Agent convinces the Buyer to pay the $10K out of pocket.

The total ill-gotten take for the agents is $600. And that's just 5% of the total.

Would YOU do something unethical and for which you could lose your livelihood for a 5% gain from 1 paycheck? If yes, then yo should believe there's a large number of folks like you who would also take that risk. If no, then understand that there's nothing special as human beings about Realtors and the vast majority of them are honest just as you are.
And of that, the selling agecy and buyers broker get 300. And of that, agents would each get about 200. So you think they would risk their license, fines and being sued for 200.?
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Old Yesterday, 11:58 AM
Status: "43 restaurants within 6 blocks of my house" (set 16 days ago)
 
Location: The Berk in Denver, CO USA
13,603 posts, read 19,416,528 times
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Ask an absolutist question and get an absolutist answer: Yes.
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Old Yesterday, 01:29 PM
 
Location: Grosse Ile Michigan
25,556 posts, read 61,024,611 times
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Quote:
Originally Posted by Spottednikes View Post
And of that, the selling agency and buyers broker get 300. And of that, agents would each get about 200. So you think they would risk their license, fines and being sued for 200.?
The also have to pay taxes, so make that about $130.
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Old Yesterday, 02:28 PM
 
Location: Columbia, SC
8,955 posts, read 17,704,146 times
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Quote:
Originally Posted by athena222 View Post
Does this ever really happen? Do buying and selling agents ever work together behind the scenes to dupe a buyer so that they can get an increased profit to share, or is this just paranoia? Anyone ever experienced this, or heard of it?

thanks

I'm sure it has happened, but I'm not aware of any cases and I've never had anyone try that with me, so I'll say mostly paranoia. As explained by a previous poster, the small amount of additional income doesn't even make it sensible to screw over a client for peanuts. I'd rather have a happy buyer that refers friends and family.
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Old Yesterday, 02:52 PM
 
Location: Long Island
8,616 posts, read 11,737,352 times
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I love when math makes sense of things. Good stuff.
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Old Yesterday, 03:00 PM
 
315 posts, read 160,055 times
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The classic scam is the "double-escrow". Say a seller asks $400K for his house but will take $300K. Say a buyer offers $300K but will go to $400K. Instead of putting the transaction through at $350K, the agents put up a dummy to buy the house for $300K and sell it for $400K. That gives them $100K profit, less expenses.

Of course, these figures are rather extreme, but getting $10K on each deal would be good enough. You could look at it as the agents being house flippers with the advantage of knowing the prices in advance.
I don't know of this actually being done. But then, I'm not in the business.
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Old Yesterday, 04:14 PM
 
Location: Lakewood Ranch, FL
5,200 posts, read 7,857,950 times
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Not to be argumentative but how can you write about a “classic scam” and then state you have no idea if it is actually done?
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