Home & Garden

July 26, 2008

Has seller inflated house value? Agent can check

Q. My friend wants to buy a house in a very upscale area of Washington, D.C. The asking price is $1.5 million. I advised her against buying the home because of significant repairs that need to be made. There is an (erosion) problem that threatens the very foundation of the home. Some might describe this erosion as a “sinkhole” if it were on a street. Because of this erosion, I advised my friend against purchasing the property. The seller has reduced the price by $100,000 to mitigate the situation. However, I wonder if the sale price was artificially set at the current price in order to give the seller the option to discount or negotiate with a prospective buyer. What do you think my friend should do?

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