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Old 12-31-2007, 06:58 PM
 
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,332,933 times
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Got a stange question...I have a feeling I know the answer to this, but I'll present it anyway.

This is for the agents...

Have you ever known an agent to falsely put homes "under contract" to possibly bring in more traffic to particular homes?

The reason why I'm asking is I keep finding an agent who currently has alot of homes "under contract" and these listings never seem to go off market. Sure I know contracts can fall through for a number of reasons, but her listings are getting abit crazy lately.
For example, a house she once had listed at $149,000 like 2-3 months ago is now listed at $179,900???WTH?

I hope business is really good for her, as it very well could be, but I kinda doubt it.
But I could be wrong.
Wouldn't be the first time....
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Old 01-01-2008, 09:20 AM
 
Location: Palm Coast, Fl
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Are they short sales? We have people who do that with short sales...actually they put them contingent because they are sending through a 'fake' contract to get to the people who actually will approve/disapprove the price and then they have a price point to relist it at.
Other than that, here, if it's in contract, it's marked with a P for pending and doesn't come up in the 'available' searches. Contingent does but most agents weed them out also unless it's an exceptional house and will call to find out what the contingency is and how shakey the contract is before showing it. But. They do stay on the mls and still go out to realtor.com because technically they are still available.
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Old 01-01-2008, 05:52 PM
 
Location: Columbia, SC
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I agree with Palm. It sounds like short sales to me. That would also explain the price of the home going back up (bank wouldn't take that low of an offer so they had to raise price). Some may have gone under contract then fallen through because of the long time frame it takes to get them closed.
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Old 01-01-2008, 06:01 PM
 
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,332,933 times
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I have no idea if they are short sales or not, I don't think so, and this is the reason why:
a few months ago, we went out and looked at the homes in this development. Two of the homes belonged to the realtor's daughters. The daughter lived in one and decided to move to another in the same development. The daughter had both homes for sale. The empty one is currently under contract. The other (that was listed at like $149k) jumped to like $174,900 (still not under contract) but a few other homes this same agent has in the same development is "under contract" None of the other homes with other agents appear to be. It's just an odd, freaky thing, because there were sooo many brand new homes listed out there for sale.
I don't see that area rebounding quite that quickly, but as I posted earlier, I could be wrong (and hope I am!)

But thanks for your replies!
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Old 01-01-2008, 06:32 PM
 
Location: Montana
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Excuse me if I'm being dense here, but I'm not quite following why falsely changing the MLS status to "under contract" or "pending" would be to an agent's advantage. Am I missing something? The only possible reason I can think of to do that (and you'd be sure to get turned in and fined for doing that) would be for marketing purposes ("Hire me - I've sold XXX number of homes in the past 30 days in your subdivision")

Outside of that, the short sale scenario sounds plausible. Also, could it be that this agent and family members own several of the homes in this subdivision. They need to move something, so they list several at bargain basement prices. Then when one of them sells (giving them some needed cash flow) they raise the others back to market price???? Other possibilities might be unfinished new construction or contracts contingent on the buyers selling their present home.

Just guessing.
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Old 01-01-2008, 06:39 PM
 
Location: Columbia, SC
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Quote:
Originally Posted by leavingbyron View Post
I have no idea if they are short sales or not, I don't think so, and this is the reason why:
a few months ago, we went out and looked at the homes in this development. Two of the homes belonged to the realtor's daughters. The daughter lived in one and decided to move to another in the same development. The daughter had both homes for sale. The empty one is currently under contract. The other (that was listed at like $149k) jumped to like $174,900 (still not under contract) but a few other homes this same agent has in the same development is "under contract" None of the other homes with other agents appear to be. It's just an odd, freaky thing, because there were sooo many brand new homes listed out there for sale.
I don't see that area rebounding quite that quickly, but as I posted earlier, I could be wrong (and hope I am!)

But thanks for your replies!
Are the homes in question new construction? If so that may explain. Sometimes in a new community the onsite agent wants people to think the neighborhood is selling well in an attempt to generate more sales. Nobody wants to be the first to buy in a neighborhood so they slap up a few sold signs.
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Old 01-01-2008, 07:26 PM
 
Location: New Mexico
631 posts, read 2,268,832 times
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I know of one broker that will put sale pending and leave it like that for months. It sure looks like she's selling a heck of a lot, but really it stays like that way after a closing. Eventually she takes it off and puts it in her solds.

Another broker will put Sold on his price lists if the listing expired. This I know for a fact as we have the expired listings for sale now on the ones he claims sold.
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Old 01-01-2008, 09:47 PM
 
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,332,933 times
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The development has been around for about 2 years, but there are alot of brand new homes that have been built and as far as I know, have just been sitting.

It was just one of the many areas we've looked at, and I will check on it occasionally...
I'm not sure what the agent would gain in doing that (if that is what she is doing), it's just really odd that is seems to be her listings that go under contract, and then they still sit. I know one house out there that has been under contract about 3 times that I can remember.

But I have seen some odd things in this market, so nothing would surprise me...It's probably all coincidence, though...
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Old 01-01-2008, 09:55 PM
 
Location: Montana
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I don't know, but around here a lot of people have purchased new homes (had picked out their particular floorplan/options) but were unable to get their present home sold before the home was completed. At that point they give up their deposit and the home goes into builder inventory, usually at a very reduced price, because the builder is anxious to sell this already completed home. So it sounds like possibly this agent is maybe the main agent for this particular builder, and some of the homes that have been under contract several times have had buyers purchasing them that couldn't close the deal. Oftentimes the builder will allow 45 - 90 days for the buyer to get his home sold, and then if they can't the new home goes back on the market again.
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Old 01-02-2008, 08:42 AM
 
Location: Louisville KY Metro area
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byron, you bring up excellent questions obviously from a painful mistrust. I understand how you feel and I am concerned about the few bums in our profession which make it harder on the rest of us. While an agent may do some things that are a bit over the edge, the general public won't always understand. So long as an agent represents only one side of a listing and/or sale, they are obligated by law to do everything they legally can to represent their client. One of the biggest concerns that I see coming to modern home buying are buyers using the internet to find the home they like, then calling the listing broker/agent to see the home. This disturbs me because the buyer doesn't have full representation.
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