By Bonnie Allison, Concord.
The rising prices of homes in Concord seems like 100% great news for sellers. But because of the state of the market, it also means the motivations to make "shady" or unethical transactions are high and rising. And this is the downside of a "hot" market: everyone is out to get what they can, including those who might have practices which might not be quite above board. In my neighborhood, a disturbing pattern has emerged: several older, single (either widowed or divorced) women may have become victims of such questionable transactions in the sale of their homes. Did the buyers do anything illegal? Perhaps not. But there does seem to be something unfair, manipulative, or dishonest about they way the purchases were made. More than a few of us in the neighborhood are very angry this has happened, because we feel these vulnerable women were taken advantage of, even preyed upon.
The Recent Widow and the Contractor
June (not her real name; all the buyers' names have been changed) and her husband lived in my modest Concord neighborhood for decades. Last year, when she was in her early 70's, her husband died, and she found caring for herself, their house and the half-acre lot it stood on too much to go alone.
Shortly after his death, a contractor acquaintance who lived in a much larger, more opulent house in another part of Concord apporached her and made an offer for the house. "I just love your house, June," he said. "I want to fix it up and live in it myself." So she sold it to him for what was significantly less than other houses seemed to be selling for in the neighborhood at that time. And fix up the house, he did -- and then he sold it. He never moved into this house he said he so loved. Did he ever intend to? Hard to say.
"My Son is Learning Disabled..."
Margaret, also in her early 70's, had been divorced for many years. Her house in this same neighborhood, too, was more than she could care for on her own, and it needed significant work.
She sold it herself to a different building contractor than the one above. "I am desperate to get into a house in Concord as soon as possible. My son is learning disabled and I'm dying to get him into the Concord schools," he confided She sold her house for not much more than the land was worth, and left town. Right away, the builder gutted it, put on a second story, and sold it for more than double what he paid. He, too, never moved in. Did he ever intend to? Hard to say.
The Listing Broker Becomes the Buyer
Another divorced woman, Jessica, in her late 60's, also lived in this neighborhood for decades. She put her house on the market, this time listing it with a real estate broker. After a few weeks, the realtor said, "Your house is great. I want to buy it for my kids...help them out...sell it to them cheap." So she sold it to him for less than the asking price.
Immediately, the realtor put in some new kitchen appliances, sanded the floors, and six weeks later put it back on the market for $50,000 more than he bought it, eventually selling for about $30,000 more than he paid. His children never moved in. Did he ever intend them to? Hard to say.
Did this realtor act within the law? Angry as she is, the seller is still unsure if she will bring a complaint against him, not being one given to "rocking the boat." If she presses the matter, the resulting investigation and legal action will help this case be clarified...until then, it is hard to say.
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Protect Yourself It is no secret that buildable land in Concord is a rarity. And according to Phyllis Cohen of JM Barrett and Co., a real estate firm in Concord and Carlisle, this could very well cause some changes in how and why people buy property. "Questionable practices will only increase as the pressure to find properties and the rewards for sales increase," she said recently. "And we will likely see another practice start: buying homes for the land, razing the house, and building a new one. It may become the only way buyers wanting a new home in Concord can obtain land to build on." She reminds homeowners that if you bought your house years ago, the price you are offered now may SEEM like a good one when compared to what you paid, but it is possible it is still not at market value. To safeguard your investment, she suggests you get your home appraised professionally. "Realtors give valuations for free and you are under no obligation to them. And getting a second opinion is a good idea," she said.
Richard Wheeler, now a Concord Selectman, is both a former Town Assessor and former Chair of the Board of Assessors. He suggests that homeowners get a valuation by an qualified assessor (found in the phone book under "Real Estate Assessors"), as such parties would have no vested interested in the price given one way or another.
After talking with a variety of sources, we recommend that if a seller feels too unsure or timid to back out of a deal that turns out not to be in their best interest, outside help may also be important. Ask a family member for help, or a lawyer or a realtor. There is no reason to put up with being taken advantage of because you're generally a nice person! -The Concord Magazine
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Text: ©1998 The Concord, MA Homepage
Art: Full Moon Graphics
