Realtors inflating property prices

**counsel** · 04-23-2010, 05:29 PM

Recently we conducted a survey of realtors in Florida and in California then moved to Georgia and Texas. What we found is a disturbing trend of realtors buying a property with the funds placed in their trust by others, making the offer to the bank then acquiring the property telling the offeror/purchaser they were beaten to it first by somone else.

They then allow the property back on the market and mark it up. Where the property is say only $2000 in Detroit Michigan it represents a 100% mark up which is criminal. Otherwise as it is in another documented case they say "you can have it for $4000 immediately plus plus". There is a TV channel from Britain thats doing a documentary on the subject. We followed them around in two instances.

The Texas and California examples is even more damming because the Realtor has been selling it to in at least one case we know of, an illegal then transferring it to himself. The banks are no better. Especially the smaller ones. They act in concert with some of the agents in places lik Florida and texas.

Realtors must learn to be honest of face the full heat of the law. I for one am complaining.

**maui** · 04-25-2010, 04:33 PM

I guess I don't get one part, so if you can please clarify. So the agent makes the purchase using the client's money (which is in the trust of the brokerage) and then tells the client that somebody already bought it. But doesn't the buyer ask for his money back? If so, are the agents not returning the deposit in a timely manner as prescribed by law?

**Greg** · 04-26-2010, 01:08 PM

I heard they are all doing it and the banks, the appraisers, the attorneys, and the title companies are all in cahoots.

I can't wait to read your survey where these co-conspirators tell you all about it.

**maui** · 04-27-2010, 02:21 AM

What somebody who has read about this post links to a credible source?

And 'counsel', your last statement seems to imply that realtors are dishonest. Can you elaborate on that, please?

**malcolmjohnston** · 05-21-2010, 07:45 AM

Funds placed in trust cannot be used for such purposes. If what you say is true, and you have evidence of it, then the people doing this should be in jail.
Instead of complaining about a practice that you percieve to be unfair, why don't you do something about it and put the people in jail?