I'm not sure if this would be called a scamm in some people's eyes but it certainly quilify's as crooked dealing as far as I'm concurned. Unsolicited buyer offered more than my deceased mom's place is worth and wanted to close and take possesion in 12 days. One of the conditions was all personal property had to be gone 3 days prior to closeing so they could confirm before closeing so they could take pocession day of closeing. There was alot of stuff,some junk and some valuable. First day we started moveing things a man stopped by to ask if any was for sale. Looked around and made an offer for everything including clean up and haul off trash. He payed for and removed several valuable things then never showed up again. Five days before closeing a neighbor inquired about buying some things. After some negotiating,I agreed to let him have it all if he left certain items til last and did the job by 6pm following day. Neighbor finsihed the job on time. On day property was to be inspected the buyer opted out of sale paying $50 contract cooling off fee. I found out later the neighbor consigned to auction some of the items bought by first man. The problem for us is we pratically gave things away rather than fighting triple digit heat index to move and store things on such tight scedule. My conclusion is they paid a $50 cooling off contract fee to get the estate far less than I could have got at auction but didn't have time to set up. Haven't decided what to do about sneeky neighbor yet.
- Thread starter da.bees
- Start date
Dave H. (CO)
Member
That is a dirty trick. Good luck with whatever outcome you decide on.
Eldon (WA)
Well-known Member
Any offer should be in writing with a substantial earnest money deposit!!!
Jon Erickson
Member
- Location
- Minnesota
Sneaky neighbors here in West Central Minnesota, also. ( unfortunately ). They all get what they deserve after time ( by their own accord ) It may take six weeks, six months, or six years: what goes around, comes around. Blessed are the meek, for they shall inherit The Earth.
Traditional Farmer
Well-known Member
- Location
- Virginia
Whoever agreed to only $50 to break a real estate contract is at fault.Did you have a real estate lawyer look over the contract? If not big mistake #2.
Bruce from Can.
Well-known Member
- Location
- Woodville, Ontario, Canada
Seems to me that your own greed at trying to sell the estate for more than it was worth,clouded your judgement. And then you rushed to grab the bait. Never be persuaded to rush into doing any kind of business deal. Con men count on your inexperience and greed , to make their profit. Not trying to beat up on you ,but you only have to look in the mirror to see the guy who did the wrong thing. Business is business,trust no one .
Kickinbull
Member
Move on. At least the place it clean out.
MarkB_MI
Well-known Member
- Location
- Motown USA
1. Anytime something seems too good to be true, it probably is.
2. Never get in a hurry when someone offers you an above-market price. There's always a reason.
3. Always ask "why?". Why did the "buyer" need to close in 12 days? If you get an answer to that, then ask "why?" again, as in "why would he want to do whatever it was that made him want to close in 12 days?" Keep asking "why?" until you get to the real answer. If the "real" answer sounds fishy, then you know it's a scam.
4. Who wrote the sales contract that let the "buyer" back out, only paying 50 bucks? Don't let the buyer dictate the terms of the sale, and make sure it's going to be painful if he reneges.
2. Never get in a hurry when someone offers you an above-market price. There's always a reason.
3. Always ask "why?". Why did the "buyer" need to close in 12 days? If you get an answer to that, then ask "why?" again, as in "why would he want to do whatever it was that made him want to close in 12 days?" Keep asking "why?" until you get to the real answer. If the "real" answer sounds fishy, then you know it's a scam.
4. Who wrote the sales contract that let the "buyer" back out, only paying 50 bucks? Don't let the buyer dictate the terms of the sale, and make sure it's going to be painful if he reneges.
ditchwitch
Well-known Member
You are the one that agreed to the terms Correct??? Im not meaning that sarcastically. How was he able to back out of sale. I believe i would have had something in writing and signed legally so he couldnt have backed out. Kinda sounds like the made you clean your property up for 50 dollars
wilson ind
Well-known Member
What about the mineral rights????????????
1948CaseVAI
Well-known Member
I feel bad that you got taken to the cleaners, but I am wondering, just in general, where folks got the idea that just because someone lives in the general vicinity of where we live (neighbors, in other words) makes them any more honest than the general population?
The closer folks are to you emotionally the more likely they are to screw you., Look at family - it is nothing for family members to screw their kin. Next is neighbors, who seem to share some local attachment at least, but they will do you as quick or qjuicker as a stranger off the road.
The closer folks are to you emotionally the more likely they are to screw you., Look at family - it is nothing for family members to screw their kin. Next is neighbors, who seem to share some local attachment at least, but they will do you as quick or qjuicker as a stranger off the road.
Years ago I bought a farm from a "poor widow woman".
We agreed to let her rent the house while her retirement home was being built in town. We were assured by the realtor and the woman that it would be finished by September 1st - the absolute latest October 1st - closing date was July 1st. In DECEMBER I told her she needed to pack her bags because we were moving in by Christmas day. Apparently she kept changing the plans on her house delaying the contractor and in general driving everyone nuts that had to deal with her. While she was living in the house I started moving things into the out buildings and she went around to the neighbors telling them that I was "taking over" even though it was still her place (that she didn't own). When we agreed to the rent amount we put it high enough to cover the rent we were paying - much to cheap for the house she was living in but we thought it was temporary at the time. As my FIL advised me (after the fact) we should have had the rent doubling every month she stayed past the move out date. By December her rent would have $4000 a month and January would have been $8000 a month - she would have got her tail moving a little faster with dollars like that going out the door.
We agreed to let her rent the house while her retirement home was being built in town. We were assured by the realtor and the woman that it would be finished by September 1st - the absolute latest October 1st - closing date was July 1st. In DECEMBER I told her she needed to pack her bags because we were moving in by Christmas day. Apparently she kept changing the plans on her house delaying the contractor and in general driving everyone nuts that had to deal with her. While she was living in the house I started moving things into the out buildings and she went around to the neighbors telling them that I was "taking over" even though it was still her place (that she didn't own). When we agreed to the rent amount we put it high enough to cover the rent we were paying - much to cheap for the house she was living in but we thought it was temporary at the time. As my FIL advised me (after the fact) we should have had the rent doubling every month she stayed past the move out date. By December her rent would have $4000 a month and January would have been $8000 a month - she would have got her tail moving a little faster with dollars like that going out the door.
It's not unusual for real estate sales fall apart at least once before a property sells. Don't count on anything until everything is completed.
Several neighbors are discussed, which neighbor are you unhappy with? It is very unlikely all those people were working together. Were you working through a realtor or was this a private sale? Some realtors are very helpful, some are useless or worse. If you think about it, it is easier to gt a realtor's license than a driver's license.
Several neighbors are discussed, which neighbor are you unhappy with? It is very unlikely all those people were working together. Were you working through a realtor or was this a private sale? Some realtors are very helpful, some are useless or worse. If you think about it, it is easier to gt a realtor's license than a driver's license.
rd 2N in mo
Member
so you only had a $50 contingency? seems you got what you paid for.
As I suspected and my reason for posting the experience,many of you are not aware of the cooling off law and all the provisions afforded. Plug it into your computer. I to thought earnest money was forfited (buyer posted $5k earnest money) but that's not true. So for those accuesing me of being stupid for only requireing $50,that's the fee required by law for opting out of a realestate contract,earnest money is returned to buyer. For those saying they will not take $8,000 for a $7,000 tractor if someone offer's,hallelujah,not many people can truthfully say that. For those suggesting a realestate agent will prevent anything unsavory happening,ha ha haaa,dream on. The contract was drawn up by a title company lawyer,same as any I have a choice will be.
I know from what some of you say,you never have nor never will be snookered because you are simply too smart but for those that were unaware and open to learn,hopefully my experience might be helpful. Reading the comments clearly show's some were as unaware as myself. We will easy survive this little scheme but it certanly reaffirm's what effort some will go to make a dime. It could be much worse for one that can not afford it. Thanks for the understanding comments and you will be happy to hear I dodged the rocks because I knew the usual crowd always throw's them.
I know from what some of you say,you never have nor never will be snookered because you are simply too smart but for those that were unaware and open to learn,hopefully my experience might be helpful. Reading the comments clearly show's some were as unaware as myself. We will easy survive this little scheme but it certanly reaffirm's what effort some will go to make a dime. It could be much worse for one that can not afford it. Thanks for the understanding comments and you will be happy to hear I dodged the rocks because I knew the usual crowd always throw's them.
K Effective
Well-known Member
Look on the bright side: you got out of the high heat work, did not throw out your back, or end up fighting with spouse/siblings/children in the heat, got some level of payment for [u:f7528ec190]all[/u:f7528ec190] the items which were never going to bring retail anyway, did not have to deal with some other snakey auction guy, got the property cleaned up and can raise the asking price to cover the "loss" on the personal items. Not a terrible deal in the end, actually. Sell the property and move on, don't even think of it again.
Or go burn the guy's house down. Your call.
Or go burn the guy's house down. Your call.
Exactly what I've done,well not the house burning thing.LOL A few sore mouths just took it that I was whinning. I wanted to share the experience because I was pretty sure most people weren't aware how easly buyers could back out and save their earnest money,I wasn't.
Eldon (WA)
Well-known Member
I was listening to Dave Ramsey last week and he told a caller that the earnest money was his to keep...I would think he would know. Maybe what you had fell under the 3 days to recind rule....
TomH in PA
Well-known Member
When it comes time to negotiate with the next potential buyer be sure to take things slowly and very carefully.
The real estate agent only wants one thing: close the sale so they collect the commission. They'll do everything they can to talk you into signing a sales agreement no matter how bad the deal is for you.
Your experience is typical (even if an agent wasn't involved) - they'll want you to spend your money to make improvements so the house sells faster, even though they know you'll never get that money back in the final price.
They'll tell you to agree to whatever contingencies the buyer wants (at the same time trying to talk the buyer out of putting any contingencies in the agreement).
Bottom line - learn what the property is worth, hold out for that, and don't get drawn into agreeing to a bunch of junk conditions that aren't worth anything to you.
The real estate agent only wants one thing: close the sale so they collect the commission. They'll do everything they can to talk you into signing a sales agreement no matter how bad the deal is for you.
Your experience is typical (even if an agent wasn't involved) - they'll want you to spend your money to make improvements so the house sells faster, even though they know you'll never get that money back in the final price.
They'll tell you to agree to whatever contingencies the buyer wants (at the same time trying to talk the buyer out of putting any contingencies in the agreement).
Bottom line - learn what the property is worth, hold out for that, and don't get drawn into agreeing to a bunch of junk conditions that aren't worth anything to you.
I learned something here as I never heard of a cooling off fee. If I ever have to sell this house will keep that in mind. I did sell my brother's farm as his conservator to cover nursing home costs. Found out the day of closing the lawyer never even informed me the buyer had put down earnest money. Didn't matter none on the sale but just makes a guy wonder what else they forget to tell you about. My brother out lived the farm value by about two months. Bum deal for a neighbor to pull on you though.
"I learned something here as I never heard of a cooling off fee."
That was my reason for posting this Pete. Actually,realestate contracts are one of the few where buyer pays anything at all,contracts for merchandise are not normally subject to a fee. At any rate the real issue was plotting by the neighbor and his two friends to captialize on a little known law for financial gain.
That was my reason for posting this Pete. Actually,realestate contracts are one of the few where buyer pays anything at all,contracts for merchandise are not normally subject to a fee. At any rate the real issue was plotting by the neighbor and his two friends to captialize on a little known law for financial gain.
Traditional Farmer
Well-known Member
- Location
- Virginia
Did you get your own lawyer working for you to explain everything up front about the contract? If not why not?
john in la
Well-known Member
Using a standard contract; you agree to buy a place and put down a deposit to show you are sincere. This is called earnest money. The title company or real estate broker holds the money. This money is used to pay your closing cost or returned to the buyer at the time of the sale.
If the buyer backs out of the sale a small cancellation fee is taken out of the deposit and given to the seller.
All remaining is given to either the buyer or seller by the terms of the contract.
Usually if you just change your mind the seller gets the money; but if the buyer finds something wrong with the house; or is not approved for the final loan; the buyer usually gets all the deposit back.
And being pre-approved for a loan does not guarantee you will get the final loan.
So all this guy had to do was put down a deposit making the seller think it is sold.
Then present a paper from the bank that he could not get the loan; and he gets all his money back; minus a small cancellation fee.
The original post says he offered more than the house was worth.
That is reason enough for the bank to turn down the loan.
If the buyer backs out of the sale a small cancellation fee is taken out of the deposit and given to the seller.
All remaining is given to either the buyer or seller by the terms of the contract.
Usually if you just change your mind the seller gets the money; but if the buyer finds something wrong with the house; or is not approved for the final loan; the buyer usually gets all the deposit back.
And being pre-approved for a loan does not guarantee you will get the final loan.
So all this guy had to do was put down a deposit making the seller think it is sold.
Then present a paper from the bank that he could not get the loan; and he gets all his money back; minus a small cancellation fee.
The original post says he offered more than the house was worth.
That is reason enough for the bank to turn down the loan.
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