Home Buying in 80911>Question Details

Keith, Home Buyer in 92397

Is it legal to use a bidding team?

Asked by Keith, 92397 Fri Jan 25, 2013

Lets say 3 friends are real estate investors. One friend wants to buy a $100,000 house for $65,000. There is some indication of motivation from this seller.

Is it illegal if I make an offer for $55,000, and my other friend makes an offer for $48,000 over the course of a few days.

My logic is that 2 well structured "lower" offers with "And or Assigns" leading up to a more reasonable lower offer would encourage a desperate home owner to take the bird in the hand rather than risk any more lower offers.

Is this legal?

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Answers

3
The KEY to everything is to DISCLOSE:
You should disclose to the Seller that you are trying to deceive him.
Or, maybe you should disclose that you are working with other Buyers to CHEAT him.

Heck, maybe it won't make any difference; because if he will entertain LOW-BALL offers like that, he will deserve what he gets, right?
1 vote Thank Flag Link Sat Jan 26, 2013
Five stars, Ron!
Flag Sat Jan 26, 2013
You know, there are actually honest and ethical ways to make money in real estate, and if my other friend was up for this, I wouldn't trust them as far I could throw them.
0 votes Thank Flag Link Sat Jan 26, 2013
Mack, U hav 2! friends?
Flag Sat Jan 26, 2013
You should retain a real estate attorney to advise you if you're looking to attempt something like that. In some cases, the seller would consider your actions as fraud while others may have no problem.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Sat Jan 26, 2013
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