Friday, April 9, 2010

Beware of Pocket Listings

Pocket listings are quite common in Austin.  I think many sellers are denied maximum market prices for these deals and we are all denied the price information the sale contains. Do yourself a favor, list in the MLS and require your agent to present you with all offers.

- Mr. Bubble


Happens Every Day

Reno attorney and real estate investor William Thornton has filed a complaint with the Nevada Real Estate Division against local real estate figures Karen Greathouse and Nancy Fennell of Dickson Realty.

Thornton accused Greathouse of conducting a “pocket listing,” which he wrote means that “the agent fails to advertise the property in order to avoid sharing the commission with another agent (by representing both the buyer and seller) or only to share the commission with agents with whom they have a special relationship.” At issue is the sale in August of a home at 2550 Lakeridge Shores East in Reno, a lakefront property that had been foreclosed, acquired by Bank of America, and sold for less than the $807,500 BOA paid for it. It was assessed at $753,515.

The $371,000 listing on the house appeared just before the close of business on Aug. 16. Reno resident George Ritter offered that amount on Aug. 17, later increased to $455,000 before the house was sold. Thornton offered $400,000 on Aug. 18 and $500,000 on Aug. 20. In a sale that took many weeks to close, the property was sold for a reported $371,250 to a firm called 7 Figures LLC and was later put back on the market at $699,000 with Greathouse as agent.
In October, Greathouse responded to Thornton’s charges by saying that her selling to him “would have been bank fraud, as well, because … Mr. Thornton’s wife is a blood relative of John Cavanaugh.” In his complaint, Thornton argues that limitation applies only to short sales, which the Lakeridge home was not.

For the full details of the story, click here:

No comments:

Post a Comment