I recently got a call from a seller in Florida that wants an offer. I don’t know the area but called the local Realtor to find out comps. The weird thing is the action in that sub looks pretty slow but the prices are really high.
I did more research and found that the brokerage is owned by the same company that built the subdivision and properties in that sub are the only lots that the broker lists. That seems pretty shady.
So I called a realtor about an hour away from that sub and he said the lots are worth 20% of what they are listed at on MLS.
Any thoughts?
@suitedconnector sounds pretty typical of a lot of developments, at least in the early phases.
for contrast, you can find plenty of older developments where the prices are more realistic for the remaining infill lots.
There’s a huge one in Texas that I posted about a while back, somebody went and bought hundreds of lots at the tax auction and has been trying to sell them as a portfolio for like $12k each… when true market value is maybe a couple $k (most are unbuildable)
@suitedconnector said in Shady Realtors:
I did more research and found that the brokerage is owned by the same company that built the subdivision and properties in that sub are the only lots that the broker lists. That seems pretty shady.
This, by itself, doesn’t seem suspicious to me. I know plenty of licensed brokers who don’t list other people’s stuff. Most of them are property managers or developers like this, and they just use their license when it serves their own interests.
@suitedconnector said in Shady Realtors:
So I called a realtor about an hour away from that sub and he said the lots are worth 20% of what they are listed at on MLS.
This sounds more like a naïve developer/broker. It doesn’t automatically make them shady or unethical (I mean… they might be, but this alone doesn’t make them a bad player). A person can list their properties for whatever ridiculous price they want, but they probably won’t sell very well if the demand isn’t there.
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