After the full four months went by without a single offer, the listing expired, but the discouraged sellers agreed that Betty could still market the property while they weighed their options. Two weeks later, a man who lives in the building -- Realtor Ted of Baker Island Realty -- showed clients Ralph and Sally the condo. They were thrilled with it and quickly made a full-price offer, which Harold and Patty gratefully accepted on November 5th. A closing was set for December 10, and all the necessary paperwork was being prepared. A survey was done, an inspection was completed, title work was under way, the mortgage application was nearly approved, and the appraisal was ordered.
Then, on December 1, as if the gods were playing tricks on poor mortals, Sandy, another Realtor from Baker Island Realty, knocked on Harold and Patty’s door. She sweetly inquired if they would like her to create a free market analysis on their home. “No thank you, we’re only renting. But can you make one up for our condo at Baker Towers?” They did not tell her it was already under contract.
Sally returned the next day with the market analysis in hand. It concluded that the fair market price for their condo was not $350,000…not $450,000…but $490,000! Harold and Patty were stunned. The two of them excitedly talked things over and concluded that at $350,000, they were simply giving the condo away. So they made a really eventful decision. Feeling both smug and righteous, they called their agent, Betty with these instructions, “Tell the buyers that we are cancelling the sale, return their deposit, and put the condo back on the market at $500,000.”
Believe it or not, Realtor Betty dutifully did as she was told and the whole thing was called off. But what did the buyers do when they got the news? Did Ralph and Sally simply take it on the chin and walk away when they heard the news? No, they hired attorney Mark, who soon filed a suit for Specific Performance against the sellers. By initiating this type of lawsuit, the plaintiffs (Ralph and Sally) were requesting that the court order the defendants (Harold and Patty) to fulfill the terms of the sales contract and sign over the deed, like it or not. “Oh yes, you have to pay our legal fees, too.” After they were served, it was Harold and Patty’s turn to be outraged, and they hired attorney Marcia to both defend themselves and to counter sue, claiming that the buyers and their Realtor conspired to cheat them out of $140,000, the difference between the full asking price they had accepted and the “true value” of Dad’s condo. Read what the expert advised
