I now understand

[they'reHISchickens]

Has anyone ever asked WHO ultimately benefits from these sales? I have no proof but if you are looking for logic in the system, if you can get a 250k house for 50K, you can put 10K of cosmetics on it, rent it out for boucoup bucks and collect rent forever and still own a cheap property. I am willing to bet there are certain people making big bucks in this scheme. The banks as an entity may not be, but people in cahoots with insiders may be. Around here rents are as pricey as mortgages. All landlords don't just own slums. And it is indeed odd to read the real estate transactions in the paper and note that many of them are for lawyers or strange sounding corporations,
jmo

 

[Chick_In_The_Burbs]

My dad had a long time friend and neighbor who had rented out his place for years as his job made him move out of state. Well, he got remarried and the new wife didn't like how much time and money they were tying up in the house. So he went to sell it.

The listing agent said 180k was a good asking price when looking at comparable a but my dad pointed out she was using an absolutely torn up (nearly condemnable) foreclosure sale and the lowest end comparable a possible. My dad did some research and told him he should be listing around 220-230k. Friends wife refused to let him list over 190k b/c she trusted the agent and wanted a quick sale.

Well, they got their quick sale. It sold in two hours to a young lady we later found out was the agents daughter. And the agent was acting as her daughters agent to boot so got the commission from both sides. Apparently perfectly legal in the state of Washington.

 

[hemet dennis]

My dad had a long time friend and neighbor who had rented out his place for years as his job made him move out of state. Well, he got remarried and the new wife didn't like how much time and money they were tying up in the house. So he went to sell it.
The listing agent said 180k was a good asking price when looking at comparable a but my dad pointed out she was using an absolutely torn up (nearly condemnable) foreclosure sale and the lowest end comparable a possible. My dad did some research and told him he should be listing around 220-230k. Friends wife refused to let him list over 190k b/c she trusted the agent and wanted a quick sale.
Well, they got their quick sale. It sold in two hours to a young lady we later found out was the agents daughter. And the agent was acting as her daughters agent to boot so got the commission from both sides. Apparently perfectly legal in the state of Washington.

It wouldn't be legal here in Calif. without a disclosure form.

 

[hemet dennis]

My dad had a long time friend and neighbor who had rented out his place for years as his job made him move out of state. Well, he got remarried and the new wife didn't like how much time and money they were tying up in the house. So he went to sell it.
The listing agent said 180k was a good asking price when looking at comparable a but my dad pointed out she was using an absolutely torn up (nearly condemnable) foreclosure sale and the lowest end comparable a possible. My dad did some research and told him he should be listing around 220-230k. Friends wife refused to let him list over 190k b/c she trusted the agent and wanted a quick sale.
Well, they got their quick sale. It sold in two hours to a young lady we later found out was the agents daughter. And the agent was acting as her daughters agent to boot so got the commission from both sides. Apparently perfectly legal in the state of Washington.

You're saying he got all the commission right ? Or is there more then one in Washington ?

 

[Chick_In_The_Burbs]

You're saying he got all the commission right ? Or is there more then one in Washington ?






                                                                          

The seller agent gets a commission and the buyers agent gets a commission. If those people are the same person, they get both commissions.

 

[hemet dennis]

The seller agent gets a commission and the buyers agent gets a commission. If those people are the same person, they get both commissions.

Not in Calif.
We only have the one sellers commission usually 6% but that can be negotiated. If there's 2 Agents then they will split it.

 

[Imp]

Quote: This is true in Washington as well. The usual commission is 6%, split between both the seller's and buyer's agent. There are a few agencies that will work for less, like 4%.
In the aforementioned case the agent would lose their license. It is illegal.

Imp

ETA- The seller pays the commission, and it is not legal for the agent to represent the seller and buyer. it is a conflict of interest.

 

[hemet dennis]

This is true in Washington as well. The usual commission is 6%, split between both the seller's and buyer's agent. There are a few agencies that will work for less, like 4%.
In the aforementioned case the agent would lose their license. It is illegal.

Imp

ETA- The seller pays the commission, and it is not legal for the agent to represent the seller and buyer. it is a conflict of interest.

They can represent both sides but they have to fill out a disclosure form and everyone has to sign it.

 

[Chick_In_The_Burbs]

This is true in Washington as well. The usual commission is 6%, split between both the seller's and buyer's agent. There are a few agencies that will work for less, like 4%.
In the aforementioned case the agent would lose their license. It is illegal.

Imp

ETA- The seller pays the commission, and it is not legal for the agent to represent the seller and buyer. it is a conflict of interest.

Interesting. I will let my dad know so he can tell his friend. But again, since they aren't in state they may not care to press legal issues from thousands of miles away. :/

 

[ChickensRDinos]

It sounds like he knew it wasn't right and went ahead with it anyway. At a certain point you have to take responsibility for your own choices even if the people around you are making bad ones.