Since the 15th Century, conmen have used the fast in, fast out card trick, sometimes known as the Three-card Monte.
Three paying cards, usually two ‘Black Jacks’ and a ‘Red Queen’ are faced side by side, face down on a raised surface and then shuffled quickly by a well practiced con. The aim is for the ‘mark’, better known as the victim, to make a bet on his ability to pick out which of the face down cards is the Red Queen. If the mark picks the Red Queen, he wins double his stake. If he does not, the stake remains with the con.
The con then shuffles the three cards, and being expert at this art, he/she will ensure the Red Queen is never picked. He may let the odd one pop up to attract more marks.
It’s a classic offer of easy money based on a one in three chance of success. Sadly success is a rare bird in these plays.
Sadly, the three card trick is still the game of choice for some Real Estate Agents. Hopeful and sometimes naive home sellers are an easy mark.
I had a call from an old client, Ray, just recently who seemed to be flustered and in need of some solid guidance.
Ray had listed his acreage property for sale with an Agent. The agent had presented Ray with an offer around $200,000 less than asking price (a 25{5be8b5650852dcf96a34828ba5a88d9285f6c7439f02c8133f6b05e7d943eaff} haircut), and was pressuring Ray to sign off on the offer quickly.
My first question to Ray was, “How did you come to list your property with this fellow?” And before I knew it, Ray was telling me, unbeknownst to him, the classic Real Estate Three-card Monte.
1. Agent approaches potential seller and says, “I just sold the property down/over/up the road for $X. I have got five buyers who missed out and want to buy in the area.”
2. “I will be able to get you $X for your place, no worries.”
3. “Oh, the market has dropped unexpectedly and the best offer I have is $X (way under the suggested list price).
A classic under/poorly skilled Real Estate Agent play that does nothing to help an already trust defficient real estate industry.
I had to dig a bit deeper. “Ray, how many of the five unsatisfied buyers were shown your place?”
“None.”
“Sorry Ray, but you been a victim of the old three card trick.”
I heard the penny drop loudly and clearly.
I then gave Ray some carefully considered advice which seemed to ease his anxiousness, and at last check, he was still on the market at the listing price originally ‘suggested’ by his agent.
There are a few basic facts you need to consider when faced with a Three-card trickster –
1. Agents DO NOT own buyers. Buyers follow property and controlling buyers is like trying to herd cats.
2. No-one, not even John Edward, can tell you exactly what the market will pay for your property. Do your own research.
3. Offers are the beginning of a negotiation process. This is a very sensitive part of the whole deal. Pressuring owners to accept any offer is a no-no!
Sadly, this practice of ‘promise and take away’ has burnt quite a few home sellers and now the alternative, selling your own home, is becoming a very attractive option indeed.
But, should you feel the services of an agent are required, make sure they put their cards on the table – face up!
