Recently, a developer regaled me with a story about a house that seemed to be cursed.
Although he beautifully renovated it and priced it below market, the Oakland bungalow just wouldn’t sell. Deals fell through repeatedly for bizarre and unrelated reasons: Buyers got cold feet, or moved — one was even arrested. By the time the fourth deal collapsed, the developer was in an acute state of financial panic.
So, when one of the mortgage brokers who had helped a previous prospective buyer called with a new one who would close the deal for — get this — $100,000 over the asking price, he naturally jumped at the offer.
“The catch was that I had to give the $100K back to them after the close of escrow,” the guy told me, still looking shell-shocked. “I couldn’t understand why they would want to do that. The place was completely remodeled.” (Most buyers who get cash back after escrow pour that money into repairs. Typically, though, lenders like to keep this amount to no more than 3 percent of the purchase price.)
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