Sham buyers represent a recurring challenge for brokers in the New York real estate market. These enquiries, which often appear disingenuous, can tie up significant time and resources without yielding a result. Mike Fabbri, an experienced broker, recounts an enquiry for a $700,000 studio apartment in Greenwich Village, where the prospective buyer asked about features such as a pool, a garage, and a bathroom in the Upper East Side, SoHo, or Long Island – with an email address like “mrspookieduck@hotmail.com”.
Despite obvious inconsistencies, real estate professionals must take every enquiry seriously. This stems from the provisions of the Fair Housing Act, the guidelines of brokerage firms, and general professionalism. This obligation often conflicts with the instinct to disregard suspicious enquiries, as discrimination is unacceptable. Every broker knows stories of such time-consuming but fruitless contacts.
To address these challenges, Mike Fabbri has developed personal rules. These include a genuine conversation before every viewing, verification of financial proof, and consistent communication with sellers and listing agents. He also emphasises the importance of responding to every message, treating everyone with kindness and respect, and giving people the benefit of the doubt. However, this must never come at the expense of the client, the property, or the integrity of a deal. Often, it becomes clear early on whether a prospective buyer has serious intentions.
Unforeseeable Developments: From Sham Buyer to Major Client
Although many enquiries from sham buyers prove to be a waste of time, there are rare exceptions where a seemingly unserious contact develops into a significant deal. An initial budget can triple, a tenant becomes a buyer, or a single casual enquiry leads to multiple referrals. Fabbri describes an eight-month collaboration during the COVID-19 pandemic with a buyer whose criteria constantly changed and who used the name “Loro Divine”. Despite financial proof and extensive correspondence, a personal meeting never materialised, as the buyer consistently cancelled appointments with dramatic excuses. While this ultimately did not lead to a closing, it testifies to the unpredictability of some leads.
The Unexpected Closing with a Prominent Personality
Fabbri had a particularly remarkable experience with an enquiry that bore all the hallmarks of a sham buyer – implausible criteria, strange availability, and inconsistent communication, under the pseudonym “Joe Smith”. However, intuition and the attractiveness of the property, a luxurious Tribeca penthouse with 12-foot ceilings and interiors by an architect featured in Architectural Digest, led him to proceed cautiously. The prospective buyer's specific questions about security and privacy were intelligent and piqued his interest. After a late-night call from Los Angeles, during which he recognised a familiar voice, it turned out that “Joe Smith” was a female, very prominent personality. This led to a comprehensive Non-Disclosure Agreement (NDA) and ultimately to the viewing of four apartments.
The prominent client explained that she had been referred by “David” – a person whose identity remains unclear to this day. This experience underscores the frustrating but important lesson in the New York real estate market: sometimes, you just don't know. The person who wastes eight months of your time can resemble the person who purchases a $15 million penthouse. It is essential to follow up on leads, work diligently, and treat people with kindness and respect. At the same time, one must trust one's gut feeling to protect one's licence, sanity, and, above all, the clients' interests.
