Let's see what it actually sells for before we pass judgment. And if there has been value added by the new seller. We can't protect people unless they're willing and able to access some professional advice. 

I agree with both Lyn and Kathleen. See what it sells for, and to whom. Some people overpay for a number of their own reasons. Now having said all of that, to answer your question, your example is a great way to educate, once it does close, if the numbers indeed reveal that the original seller was less than apprised going in. Use it as a cautionary tale. And if you see it happen, you'll have more info to provide. However, one of the jobs that we do is to keep people out of their own way and some principals don't recognize our value in that respect. Also, there are those principals who use a less than ethical or qualified agent for a number of reasons. And there's not much that can be done about that.

I'm not sure I feel the same way that you do & here are a couple of my points.

Original owner does nothing for 'x' number of years & expects top end price. Buyers say no thanks to that price & in walks Mr. Investor with the cash to do those rehab repairs. He's using his money as the seller won't. He's taking the risk of putting in the work & more money into a place hoping that if he picks the right mix of upgrades - he'll double his money.

I'm sure there are some people that are getting taken advantage of & then there are some people who are jealous of the people who take the risk & work & want to be rewarded for that. 

Some people will be jealous of anyone's profit whether in real estate or the stock market. What would you call those people?

Savitri Richardson This is a difficult question to answer. Unfortunately, we don't know all the facts and under what circumstances the seller sold the property. I agree it is not good business if done with fraudulent intentions.

Let the market take care of itself.

Ken Jones makes the most sense..lots of information needed to before passing any conclusions....thanks Ken. I'd like to know the answers too!

Sounds ike a general topic worth writing about on your blog - educating sellers on a variety of issues about selling, etc.

Did they make improvements???

There really isn't anything we can do.  The only way to educate sellers is to get to them first.  You know your market and market conditions best. I am not in a position to presume what is happening there. 

It is amazing what a real professional can do hen it comes to buying and selling real estate.

See it all the time.

City, not some old person, sold a lot for $600,000, a price higher then they expected. sold a few months later for 1.8 million.  I say JOB WELL DONE!

I do not charactorize the city as  avulnerable seller. They were taken to school.

We are paid for what we know. Agent #1 clearly did not know what agent 2 knew.

There is always more to these stories than is initially shared. If every one is more than happy, there is no foul.

It is difficult to know what is going on without a full review of all of the facts.

Savitri,

I am in agreement with Kathleen Luiten and Lyn Sims, two wise women on Active Rain.  A

I will stand in agreement with Kathleen Luiten and Lyn Sims ... 

I can't really give you an answer. I would need more details. Did the new buyer do upgrades? Has the market improved that much? Maybe the seller didn't have a good agent to get them the best price. 

Never know how much the developer spent to modernize this home, I have heard that contractors are very expensive there.

I agree with many of the comments from my colleagues, lets wait until it's sold and see how much it's sold for. Also the investor may put a lot of money into upgrading the 4 duplex and the duplex may be fully rented now with high end renters. Previously it may not be fully rented and the rent was a lot lower.  Also if it's in an up and coming neighborhood the value is just going to go up.  Some investors may be willing to pay $6M on this 4 duplex if they think the return on investment is good.

Smart home sellers understand the market.

This is a hard thing to combat.  These people pray on those who have no idea

I tend to agree with Lyn Sims assessment.

Not to worry, appraisers will do that for the parties involved very soon.

Not sure there are enough details to form an opinion. Condition at time of original sale, upgrades and financial situation of original seller are factors! 

Maybe there were issues with the brownstone at time of sale and the seller felt it was a fair price.

I do not see it to that extent, but do like to spread the word why it is so important sellers higher a good listing agent who will look out for their best interests

Good luck.

Not enough informantion looks like some facts are missing

You have not provided enough information here. How do you know that some millions were not invested in this unit over the course of the year? How do you determine it's not worth $6million? Maybe the prior sale was below market value.... coming from NYC and having been a broker there, it sounds to me as if the $1.5 million was underpriced. Why do you assume the seller is vulnerable?

Time will tell or at least reveal a secret or two.   

Savitri Richardson You are making a good point. But, it is difficult to judge on the sale with little information.  Good question.

You said it is on the market , did not say it sold!  It may stay on the market at that  price for another 10 years. Four units  going for over 1.5 million each, sounds a bit steep. As someone already said  we probably don't have all the details. I like to watch it and see the outcome.

Some lessons in life come with high expenses...

Ken, Lyn, and others have given excellent answers.  I, too, would need more information before passing judgment.

Savitri Richardson - Ken Jones has exactly what I would have asked.

Just can't read the letter without opening the envelope.

That is power of real estate

I hate to see sellers taken advantage of like this.  Maybe the place really did need a total gut job that was done really well?  Or maybe the flippers were crooks!

There are many questions unanswered.  I've seen several instances out here where the seller has KNOWINGLY sold for less than current market value, either to be rid of it or for tax reasons.  Heck, OpenDoor is making their business model on people wanting to sell for under the market.

and this says alot for sellers who have only one market analysis done.... take the time and get three....they should all be within the same range.... 

Wow, I wonder what the situation is behind the deal, someone must of known something what is happening in the area.  Maybe it will be for the new white house secret services building.