Any Real Estate Agents - Question About Rental Properties

[26 Inf]

Thread title is probably misleading.

Long story short, we were going to buy a house for my father-in-law to live in so he would be closer to his daughter and granddaughters (he is 92).

The house was vacant and not listed yet. My wife contacted the guy and he said since he knew us quoted us a price. I didn't think the house was worth that much and told the wife no, let him list it and when it doesn't sell we'll offer him what I want to pay - which was 10,000 less than his initial offer.

The house was listed, at 28,500 more than I was willing to pay. It sold, for cash apparently, the very first day, as there was no 'contract pending' sign on it, instead it went right to 'sold'.

I was kind of curious, did some checking, apparently the out of state buyer paid what the house was listed for.

It entered my mind that someone might be cleaning up some money. Does my theory have any legs?

[Averageman]

$28,500 more is a lot of cheese.
How much money could be laundered that way without some suspicion?

[GH41]

Two things... What you thought it was worth was less than the guy who bought it thought it was worth. Cash sale doesn't always mean the guy bought a wheelbarrow full of cash to the closing table. Any payment that didn't involved a mortgage would be considered a cash sale. A local friend sold a 2.5 million $ house and the 1.5 million $ lot next door to it for cash. The buyer paid with cash. He shit a brick but was assured that it happens every day.

[SteyrAUG]

Thread title is probably misleading.

Long story short, we were going to buy a house for my father-in-law to live in so he would be closer to his daughter and granddaughters (he is 92).

The house was vacant and not listed yet. My wife contacted the guy and he said since he knew us quoted us a price. I didn't think the house was worth that much and told the wife no, let him list it and when it doesn't sell we'll offer him what I want to pay - which was 10,000 less than his initial offer.

The house was listed, at 28,500 more than I was willing to pay. It sold, for cash apparently, the very first day, as there was no 'contract pending' sign on it, instead it went right to 'sold'.

I was kind of curious, did some checking, apparently the out of state buyer paid what the house was listed for.

It entered my mind that someone might be cleaning up some money. Does my theory have any legs?

Probably not. Should have just paid an appraiser and then made an offer accordingly. Buying houses is probably the worst way to launder money, unless you are in FL or someplace with homestead exemptions that forbid seizures of primary residences it's probably the best way to lose your ill gotten gains.

[Eurodriver]

Totally normal.

Houses are flying off the market at well over list.

Now is not the time to buy if you are the type to haggle or make deals.

You will lose.

As you saw.

[austinN4]

The house was listed, at 28,500 more than I was willing to pay. It sold, for cash apparently, the very first day, as there was no 'contract pending' sign on it, instead it went right to 'sold'.

I was kind of curious, did some checking, apparently the out of state buyer paid what the house was listed for.

It entered my mind that someone might be cleaning up some money. Does my theory have any legs?

Nope! It is happening all over Austin, which from what I hear is not unique to Austin

[austinN4]

Now is not the time to buy if you are the type to haggle or make deals.

But it may well be the time to sell, and I am seriously considering it.

[26 Inf]

Thanks.

I had no attachment to the house. Wife wanted to do it for her dad and I would have given her the money at my price.

In the end, 5 or so years down the road (F-I-L is 92 after all) I would have been stuck with another rental house I didn't want. I got out of the rental business because I have a soul and therefore wasn't making money.

Just thought it was odd, it is a smallish, fairly non-descript house.