I've heard of this... In theory it sounds like the perfect scheme for a conartist... But the reality is much different... When an offer is presented it identifies the buyer by providing their name and address. Also the mojority of agents request that offers be presented with a loan preapproval letter-which also includes the buyers name and address. For a buyer to do this they would need to fabricate a new name and a preapproval letter. He/She would need to get the loan officer to create the letter and they would also need to let the buyers agent in on the secret so they can go on with this. In my opinion this is an awful lot of work with minial benefits.
Also, if in fact an agent and lender are involved it is my opinion that this type of practice is very unethical and should be punishable. Truth be told, there are many unscrupolous people out there and its your job to protect your self against them. In this case the best thing you can do is keep on top the current market condition in your area. This will tell you what is a low offer and what is market price. I recently wrote about this and you are welcome to read about it on my active rain blog. The post is called "If the Price is Right" and can be found at
http://activerain.com/blogs/cninasoto
I hope this helps you and best of luck with your home sale.
Cynthia (Cindy) Nina-Soto
- Tue May 27 2008, 13:43