Don't you love it when you hear about Real Estate drama going on in your neighborhood? Aren't you glad it's not you?! I had lunch today with Leonard Thomas. Leonard and I met a few years ago while he had the sellers and I had the buyers. It was one of the smoothest transactions I can remember having as he met me at my buyers' hotel at 11pm at night to pick up the signed offer to take to his sellers. Though we've never worked another deal together since, we've kept in touch over the years as I've shown many of his listings.
Whenever Leonard and I get together, it's gossip this and gossip that but it's all about real estate and we learn a lot from each other. I love trading stories with him and it's even more fun when we can guess who the story is about just from what happened. Leonard and another agent are very competitive in my neighborhood. I don't even farm my neighborhood because I would be shunned away as they have the market share, and that's fine. I rather not "mess" where I sleep! LOL
Leonard was telling me about this overpriced listing one street from him. He had competed for the listing, but the other agent basically "bought" the listing instead. It was listed last year about $35k over what was suggested. It got a contract immediately. Didn't appraise. Back on the market at same price. Under contract immediately. Didn't appraise. After two contracts in a short time, the seller decided to wait.
It goes back on the market this year for the exact same price as last year. Under contract immediately. Didn't appraise. Under contract immediately didn't appraise... at the same time, Leonard gets a new listing in the neighborhood listed for the same price as the other, but with a pool and spa. Those buyers submit an offer to Leonard's sellers, it's excepted, and the buyers terminate their other contract with no penalty because it was during their option period.
The other listing agent "figures" out what is going on as she saw both things happen simultaneously with her buyers backing out, and the other listing going under contract. This other agent actually had the "nerve" to call the other buyers' agent and stress how much better her property was and how the buyers were making a huge mistake and yadda yadda. She basically was borderline infringing on the successful close of the transaction which is against some of our Realtor Code of Ethics and Standards of Practice rules.
Leonard didn't think this was a good story to blog about as he's very new with the blogging world, so I told him I would do it for him. He'll post his comments and add more to this. Just to end the story, this listing did go back under contract immediately AGAIN, but has yet to close. I can't wait to see what the final sales price is!!
Why is it if not just one, but three or four appraisers can't find value, that sellers still think they can sell for whatever they want when buyers can't get their financing for that amount, and we're not in an area that condones bringing the extra cash to closing in order to make up a difference. No one is going to "over pay" for a house these days. Open your eyes, Mr and Mrs Seller... and Listing Agent!!