When your neighbors sell their townhouse for less in a hot market
Q: We just learned our longtime neighbors privately sold their large townhouse for considerably less than necessary. The neighborhood estate agent bought it. Her assistants are stating a somewhat rehearsed “the sellers wanted a fast sale.” This makes no sense to any of us. These homes sell in hours. All the neighbors feel like complaining about this nefarious transaction, but to whom or what entity?
A: I’ve been railing against unreported massive losses to American consumers via financial elder abuse and Off-MLS private sales for years. Since many of America’s 10,000 Baby Boomers who turn 65 every day are homeowners, criminal assaults against their equity have been on the rise. District attorneys in every county in the Bay Area have a Financial Elder Abuse unit waiting for calls just like yours. The increase in private sales aka Off-MLS (Multiple Listing Service) rose with housing demands. In the Great Recession, many listing agents would stop a German shepard to pitch sellers’ properties. However, once the market turned seller-friendly, some of the very same agents began amending their pitch to their sellers to “it’s best if their firm also (quietly) represented the buyers.” The result is two paychecks for the dual agent. In five Bay Area counties, the median Off-MLS difference (loss to sellers) increased from $7,702 in 2011 to $198,000 in 2016. In Q1 2018, Off-MLS sales surged to 21.57 percent.
The California Association of Realtors (CAR) proclaims Off-MLS agents could be sued for breach of duty, and risk a federal fair housing claim. Add violations per the 100-year-old National REALTOR Code of Ethics in Article 1 to “promote and protect the interest of the client.” Also cite a “duty to cooperate established in Article 3 relates to the obligation to share information on listed property, and to make the property available to other brokers for showing to prospective purchasers when it is in the best interests of sellers.” Add in that the California Department of Real Estate (DRE) could revoke their license for “any substantial misrepresentation, fraud, dishonest dealings, negligence or incompetence.” You see? Flip a coin with the neighbors. Make the call. Let your DA sort it out.
Know someone who is thinking of moving? Realtor Pat Kapowich provides turnkey services including relocation, staging, market analysis and strategic planning. 408-245-7700 or Pat@ SiliconValleyBroker.com. Broker Lic. 00979413.