Expert: Dick Dennis - 7/26/2006

Question
We had an agent on our side as well.  She really did take it off the market.  The sign in the yard is gone and it's no longer listed on the MLS.

Supposing it's not greed, can you speculate as to what the problem with the title may be?  

She bought the house exactly one year ago for $199,000.  Profiting 36,000 dollars in one year is GREAT.  I only offered the 5,000 extra after she took it off the market and said she could no longer sell the house.

There's something going on with the title.  Her agent said she didn't cross one of her t's or dot one of her i's and now it's causing problems.
What do you think the problem is?
thanks

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Followup To

Question -
Hello.  My husband and I have been looking for a home in Baton Rouge, La for over a month now.  The market is "crazy" due to Katrina.

Finally, we found a home in a great location, that had everything we wanted and more.  It was perfect, THE ONE.  Our agent faxed an offer.  They counter offered full price, 235,000.  So we faxed a purchase agreement for full price, but never got it back from them.

After a few hours of waiting, we received a phone call from the selling agent saying there was a problem with the title and the seller could no longer sell her home.

They felt badly about the situation and said that they would try to work something out so that we could lease the property until the title was "fixed."  After two weeks of us thinking that would work, we were informed that they could not lease either because you need a closing date for a lease agreement, and they don't know when they can close.

Thus, we are back at square one with no house and no real explanation.  I have never met the seller nor talked to her.  The only thing I can think of is that she realized how crazy the market is and that she could sell her home for a bit more than she was asking. Thus, she's taking it off the market for now and putting it back on later?  

Either way, I want THAT house, am willing to pay 5000 more, and want to know what's really going on.  

The selling agent says he's not at liberty to disclose the seller's personal information.  Also, we told them that we could give them until October to work it out, but that still was not enough.

What do you think could possibly be going on?

Thanks,
frustrated in Louisiana

Answer -
You just bucked up against a seller who can't make up her mind when Old Man Greed stares her in the face. Ironically, Bridgett, the seller DOES NOT have to sell the house even at the listing price, which is what you offered. The listing agent may have earned a commission, but that is up to him to enforce it.

I would say that you were acting too anxious to get that house. When some sellers see that they are being offered the listing price, they start thinking greed. They think they have a live one on the hook. Now you perhaps understand the value of offering less, especially in a buyer's market (surprisingly enough.)

From now on you should NOT act so anxious to buy. You must be aloof. Almost as if you are really not interested. You apparently did NOT have an agent working from YOUR side. You must realize that real estate agents work for the seller only and do not have to divulge information about the seller, only that that is of importance of the property and price. What that seller has done was to dip her hook in the water and then yanked it out when a fish tried to bite.

The way it is going, you're going to pay lots more than that $5,000 more you were willing to pay. Keep on looking. There are others out there.

Here is an idea for you, if you are willing: Contact a real estate ATTORNEY to act for you as the buyer. Instruct the attorney not to divulge who the buyer is and have him offer less than the asking price. If you are willing to pay the extra $5,000 you should not object to paying a real estate attorney to make the purchase for you. Attorneys can and do buy without divulging who the buyer is.

I do wish you well.

Dick Dennis          dixiedee13@aol.com

Answer
Well, I can think of two things: 1. Maybe someone else is on title with her and she was trying to sell it on her own.
She can't find the other person or the other person is not willing to sell. 2. If she lives in the house, she wants to live there one more year to take advantage of the IRS tax exlusion that allows her to not have to pay taxes on any profit up to $250,000 (IRC 121).

But then, I would think all the agent need do is to tell you that. On second thought, maybe they thought you might insist on selling the property. By saying there is a title problem, that way you would back off and not make problems.

I do wish you well.

Dick Dennis