High-End Home Sellers Beware – Santa Monica Homes for Sale
Home sellers beware: while there are a plethora of potential potholes that one may come across when attempting to sell a home, none should be as highly avoided as “The Bogus Buyer.”
This article is intended to help home sellers spot a “Bogus Buyer” and avoid wasting precious time and energy on a deal that will never come to fruition. And with that let’s go over the Bogus Buyer Checklist:
1 – The Buyer has Never Physically Stepped Foot on Your Property
It happens from time to time, an offer comes in from a potential buyer, but they’ve never physically been at the home. This should raise a huge red flag. Do you honestly believe someone is going to realistically offer up several millions of dollars on an asset they haven’t even stepped foot on! Get real. The photos are not THAT great!
2 – Earnest Deposit is Higher Than 3%
In all California residential real estate transactions it is standard that a buyer deposit 3% of the proposed purchase price upon opening escrow. In California liquidated damages are capped at 3% of the purchase price and the seller would not be able to keep more.
3 – Earnest Money is Wired
While it may be true that at one time it was common practice to write cashier’s checks or personal checks for deposit into escrow, it is also true that dinosaurs once ruled the Earth. In this modern day of technology with everything available at our fingertips and on our smart phones sending money to an escrow is as simple as clicking a button.
4 – All Cash Offers Without Proof of Funds
The best deal to be made in real estate is usually all cash. The purchase contract has a clause for All Cash for Verification of Funds to be attached. When a contract comes in that says it’s all cash, but there are no proof of funds, this is another huge red flag.
5 – Out of Area Agent
High end real estate markets demand agents with highly specialized and intimate knowledge of the area. A high end buyer will typically work with a well-known agent in the community.