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Realtor Takes Advantage of 9/11 WTC NYFD Widow !!!

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Joe Birrell (NY)

Thread Starter
Member
Joined
Jan 16, 2002
This is a bizzare and sad story.

I get a call from a woman who wants me to do an appraisal on a house
two blocks from my office. I already know the property as it was done
less than two years as new construction. Besides being only two blocks from my office, it was memorable as being a problem case (over-improvement, no comps, UW and LO aggrevation, etc.) Sales price at time was $340,000.

The caller tells me that her contract price is $550,000 ! I immediately tell her that there is no justification in this area for such a high price, and if she hires me to do the appraisal, it will appraise at a lot less. She seems rather upset and a little frantic during our telephone conversation, but insists that I meet her father at the property for the inspection. I think, OK no problem, whatever. I check MLS and find the listing. It's the usual MLS crapola, e.g. the neighborhood name shown in listing is a bordering area with much higher values, and the improvements are exagggerated.
The next morning I meet the father and we are both stood up by the owner. While we are waiting for owner to show up (he never did show and RE agent didn't reponse to cell phone calls), the father starts to explain that he is frustrated with his daughter. He believes the subject is way over-priced, and she won't listen to reason. He also adds that his son-in-law was a fireman killed at the WTC on 9/11. The father also tells me that she is anxious about her future (small children, living in apartment, etc.). Daughter insists on buying subject no matter what, even if it's all cash (proceeds from 9/11 disaster and insurance from NYFD). He says she is not thinking clearly due to what happened. She also has been having trouble finding a home in good condition in the area. She wants the area because her sister lives nearby.

At this point, I can no longer bit my tongue, so I spill the beans and tell him all. He thanks me and we both leave without ever getting in to do the
inspection.

The next day, his daughter calls me and she is frantic, but insists on buying all cash, regardless. So, I tell her she dosn't need my services, sorry to hear about her husband, have a nice life, good luck, and no charge for my time.

Today, I found out that she did purchase the subject for $550,000 all cash
and here's the punch line - the Realtor lives next door to the subject and
the seller was here buddy who happens to have his business next door to her real estate office.

Other than being a moral outrage, I wish I could have the Realtors license revoked. On ther other hand, if she was being taken advantage of in the beginning, at what point does the buyer accept responsibility.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
One of the hardest things to accept is standing by and allowing an adult to make a blatantly obvious stupid decision. Especially one that you really want to help.

And some Realtors wonder why so many people think of them as worse than used car salesmen. This is a prime example.

Makes me sad after the initial anger.
 

larryhaskell

Senior Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Nevada
I'm absolutely shocked that a realtor would be involved in this type of transaction. You must have misunderstood. Ha Ha Ha.............Ha.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Sadly a great number of the survivors are going to rapidly blow the financial boost that they were given, which WAS inteded to level thier personal loss to semi-manageable level of pain...

Sounds like this gal is a prime example of a fool and her money...

May I inquire WHY they were interested in an appriasal if they were going to overpay in cash anyway? seems like again a case of tossing bad money after good.

I would have told all also, and slept well that night. USPAP and realtors be damned.
 

Ross (CO)

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
.....and now this sale will enter the historical database as a new benchmark of value in the neighborhood......and some appraisers may inadvertantly use it to portray buyer demand for housing with little to no info for verification......and the beat goes on.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Well, it is their job to get the most $$ for their client, the seller. But to streeeetch the truth in advertising is what really irritates me. That and the new definition of "market value" that salespeople tout. You know the one, "it is worth what someone is willing to pay" AKA: what an ignorant, stressed buyer will pay, and what a seller will gladly accept and run off to the bank.
 

Blue1

Elite Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
Absouletly disgusting. I have seen similar realtor shananagons in my neck of the woods. That is, realtors over-pricing and over-selling homes to unsuspecting clients. (They do no market research before listing a property) Here, we have clients coming from super high market and selling their homes for big bucks and then moving to our area. SOME realtors take advantage of this and try to "bilk" the most $$$$$ they can from these folks by purposely listing homes way above the market. Worse yet, there's an appraiser in town that "guarantees" those inflated values to realtors.........I'm on his tail..........
 

Larry Lyke

Senior Member
Joined
Feb 2, 2002
When you have a really nice home in a nice neighborhood, over-listing the property usually assures that it won't sell quickly, therefore you can use it for open houses and attract quality buyers and take them out during the week and sell them something else and come back and hold the same house open again next Sunday.

Years ago we had a new agent. Set him up with a nice open house for Sunday. Every week he sold the people he met at the open house a house some where else in the neighborhood. About the 10th week the broker called him in and ask him when he was going to sell the house that he was holding open on Sundays. Being a little more intelligent than his broker, the agent told the broker that he thought the broker should buy the house for him!!

I agreed. No, I wasn't the broker!
 

Karl

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
Because I have a Real Estate License I can say this Realators R Licensed PROSTITUTES we'll love U till we make the sale. Thats Y I prefer Appraising
 
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