A Behind-the-Back Scene
Founder/Managing Partner Lamar Hunt Jr. has heard all kinds of stories about real estate agents. One story involved an agent selling a property in need of repairs. The property was listed at $199,000 and had no lookers or offers. They lowered to $189,000 and then $179,000. They got lookers but no offers. As time went on, the seller called a real estate investor directly. The investor came out to the house and offered the seller $129,000. The seller accepted. Shortly after getting back to the office, the real estate agent called and said she had a buyer for a price higher than that and to have a good day. The investor had been preparing the papers for the seller to sign but now that was not needed. The investor, confused as to how he had just lost a deal followed up. After closing, he discovered another investor had bought the place for $131,000, just $2,000 over his price. What a coincidence. Then, with some digging, he discovered the buyer was the brother-in-law of the agent. Wow! Another coincidence. Over the years, this investor experienced this several times. It appeared to him that the agents simply overbid his offer and sold to the agent’s colleague. The seller doesn’t mind this because they get a higher price. All the investor is doing is setting a price for his competitor to slightly overbid. Eventually, this investor made it a practice never to look at homes that are listed with agents. He tells the seller that once their contract has expired and the locks and signs are gone, to call him. This has worked great! For more stories like these, see our blog at http://lorettoproperties.com/. You can also call us at 913-236-2902 if you have a property to sell.