A question of ethics to the nth degree - Posted by karp


#1

Posted by Laure on January 09, 1999 at 21:45:38:

are we talking about basic human GREED ??? hmm… well I know I don’t have a greedy bone in my body !! Are you laughing yet?

Good point Karp.

Laure :slight_smile:


#2

A question of ethics to the nth degree - Posted by karp

Posted by karp on January 09, 1999 at 21:33:15:

Man oh man oh man,

I did everything in my power not to post this…

I want to tell you what “different” investors making multiple offers on a property can ultimately lead to.

See it won’t be long until you start thinking "Say, what if they did accept the higher offer but then suddenly that guy couldn’t follow through with his loan and loses maybe a $100.00 Earnest Money but the contract states that is ALL the seller is allowed to collect. Do you think now the seller may accept the lesser offer involving seller financing?

Then you start thinking “Hmmmmm. If this seller were to have several contracts fall through right in a row, each one taking up the seller’s time, the seller may start to become desperate…”

ie Cash offer at 95% of asking price, 45 days later falls through. Seller takes cash backup offer, of 90% of asking price on a 30 day close. Boom. That one “dies” too. Seller now gets 2 offers both with some sort of seller financing which he really wasn’t keen on doing…But then what are his options?

Finally, as he is thinking about it. A PREAPPROVED, Buyer comes in with an offer of LESS than 80%. Cash. The seller balks and his listing agent calls the selling/buying agent…“No, I am sorry, that’s all he qualifies for. That’s the max. Really. But we can close in 4 days.”

Anyway, you see where this is going. What looks like simple collusion in writing offers at the beginning can evolve into a systematic demoralization of the seller. Trust me, if you go the multiple offer route it is only a matter of time before you do this…

Best of Luck,

karp

aka

Karl Hartley