Maybe it’s just me, but I’m not seeing the misconduct that’s being alleged here. The original sale prices in 2000, 2001 or 2004 are irrelevant to anything. The amount of cash these sellers are pocketing is also irrelevant. Regardless of what we think the prices SHOULD be, the homes are worth in 2007 what they’re worth in 2007.
I’d have to take a look around to see if the sale prices are reasonable with respect to the local comps so I make no assumptions about that one way or the other. But even if there are problems with comps, that’s not the agents’ problem but rather a problem with the appraiser and the lender who isn’t bothering to watch the appraiser.
Now if we’re alleging mortgage fraud (which I guess is where the blog is going) then I guess there is that – but that occurs with the loan originator and the borrower, not (usually) with the realty agents.
Believe me, there’s nobody on this planet who’s faster to criticize misbehaving “professionals”, but I’d have to see some indication of misconduct before I start casting stones. At most, clearing a profit is no more than an indirect indicator. Even if these agents have a reputation for doing funky things in the past that’s no guarantee that this is funky too.
