In the US Ian we call those net listings and I won’t touch them either. I told Realtors submitting such offers in Las Vegas that they should make an offer for the listing price, not above it. If they are so confident they can play the net listing game to extract cash out of the deal then I told them to refinance the property after it closes to take cash out. Of course that won’t happen.
The scam works on the basis of a mortgage lender, a Realtor and an appraiser all being linked into the scam and then the idea is once the property is sold, possibly to a straw buyer, then the buyer makes 1 or 2 payments if any and walks away leaving the bank stuck with an over priced defaulted property. Realtors should lose their licenses for such transactions.
Great videos BTW.
Bruce Hiatt, Broker/Owner, ePro, CRS
Luxury Realty Group, LLC
www.LuxuryRealtyGroup.com
Direct-702-456-7080 x201 PST