Interesting Scenario

renbac_IHB

renbac_IHB

New member
My Realtor submitted an offer on a property that I fell in love with back in early May. It was a short sale (not sure if that matters, but I thought I would mention it).



At the time my offer was submitted, the listing agent told my agent there were 5 offers, and I was the 5th. The offers would be closed after mine. The listing agent was going to stay true to the 1st offer because they had submitted back in March. But, if anything should happen, she would stay in touch.



In the mean time, my agent said that she would write a letter on my behalf. Being a writer by trade, I wrote one as well. The listing agent responded by saying that she recognized how committed I was, and to hang in there, as the buyers were "foreigners from Garden Grove, as was their agent, and there was a huge language barrier and the buyers and their agent were getting very impatient." She said it looked like they were going to back out and assured me that if anything were to happen I was guaranteed to be next in line.



Fast forward to June. The middle three offers had backed out by then. It was between the other buyers and I (supposedly). By this time, according to the listing agent, an inspection had been performed and there was termite damage of $800 that the buyers didn't want to pay for, and it looked as if the sale was not going through.



Well, lo and behold, the sale went through, and that should be the end of the story, right?



Not really. Today I looked at the listing on Redfin's new-and-improved site and saw that it sold for exactly what I offered. Not only that, but the buyer's agent was also the listing agent.



I'm pissed more than anything because this wasn't disclosed. The agent went through this whole cockamamie story about a language barrier, impatient buyers, I was next in line, yada yada. If she had said that she was the selling AND buying agent I would have moved on. I feel like she strung me along for no reason.



I'm curious to find out if this is common practice, or if I have any type of recourse, like reporting the Realtor to the local board. Yes, I know---sour grapes, but this all feels very sneaky and underhanded. All comments welcome.
 
[quote author="renbac" date=1257818705]My Realtor submitted an offer on a property that I fell in love with back in early May. It was a short sale (not sure if that matters, but I thought I would mention it).



At the time my offer was submitted, the listing agent told my agent there were 5 offers, and I was the 5th. The offers would be closed after mine. The listing agent was going to stay true to the 1st offer because they had submitted back in March. But, if anything should happen, she would stay in touch.



In the mean time, my agent said that she would write a letter on my behalf. Being a writer by trade, I wrote one as well. The listing agent responded by saying that she recognized how committed I was, and to hang in there, as the buyers were "foreigners from Garden Grove, as was their agent, and there was a huge language barrier and the buyers and their agent were getting very impatient." She said it looked like they were going to back out and assured me that if anything were to happen I was guaranteed to be next in line.



Fast forward to June. The middle three offers had backed out by then. It was between the other buyers and I (supposedly). By this time, according to the listing agent, an inspection had been performed and there was termite damage of $800 that the buyers didn't want to pay for, and it looked as if the sale was not going through.



Well, lo and behold, the sale went through, and that should be the end of the story, right?



Not really. Today I looked at the listing on Redfin's new-and-improved site and saw that it sold for exactly what I offered. Not only that, but the buyer's agent was also the listing agent.



I'm pissed more than anything because this wasn't disclosed. The agent went through this whole cockamamie story about a language barrier, impatient buyers, I was next in line, yada yada. If she had said that she was the selling AND buying agent I would have moved on. I feel like she strung me along for no reason.



I'm curious to find out if this is common practice, or if I have any type of recourse, like reporting the Realtor to the local board. Yes, I know---sour grapes, but this all feels very sneaky and underhanded. All comments welcome.</blockquote>


Sorry to hear the news renbac,



It is significant that the deal was a short sale. The listing agent likely did not have any further compensation for representing both sides of the transaction, as it is limited by most of the short-sale lenders in their loss mitigation boilerplate. There is likely no financial motivation for the agent to do this. The agent MIGHT have felt like she had more control of the transaction, however, and recommended that sellers pursue the other offer. Sellers ultimately decide. Lenders make the final approval.



She did not have an obligation to disclose anything about other offers to you. It is spelled out in your AD form. Stories are just stories.



In the future you might ask specifically:

- is the listing broker is representing any current offers?

- how many liens are against the property, and with which lenders?

- what is the total shortage being requested?

- is this a recourse or non-recourse situation for sellers?

- has the broker worked on short sales before (and has she closed any of them)?

- does she use a "short sale negotiator" and if so, who pays for this (you do) and how much?

The agent doesn't need to disclose any of this to you, but might choose to.



I'd be curious to know sugarspun's <strong><a href="http://www.irvinehousingblog.com/forums/viewthread/6598/#135195">list of questions</a></strong> and if I've neglected any.



There will be other houses. Good luck,

-IR2



Btw, I saw a license plate "RENBAC" in AV on Friday night... was that you?
 
[quote author="renbac" date=1257818705]My Realtor submitted an offer on a property that I fell in love with back in early May. It was a short sale (not sure if that matters, but I thought I would mention it).



At the time my offer was submitted, the listing agent told my agent there were 5 offers, and I was the 5th. The offers would be closed after mine. The listing agent was going to stay true to the 1st offer because they had submitted back in March. But, if anything should happen, she would stay in touch.



In the mean time, my agent said that she would write a letter on my behalf. Being a writer by trade, I wrote one as well. The listing agent responded by saying that she recognized how committed I was, and to hang in there, as the buyers were "foreigners from Garden Grove, as was their agent, and there was a huge language barrier and the buyers and their agent were getting very impatient." She said it looked like they were going to back out and assured me that if anything were to happen I was guaranteed to be next in line.



Fast forward to June. The middle three offers had backed out by then. It was between the other buyers and I (supposedly). By this time, according to the listing agent, an inspection had been performed and there was termite damage of $800 that the buyers didn't want to pay for, and it looked as if the sale was not going through.



Well, lo and behold, the sale went through, and that should be the end of the story, right?



Not really. Today I looked at the listing on Redfin's new-and-improved site and saw that it sold for exactly what I offered. Not only that, but the buyer's agent was also the listing agent.



I'm pissed more than anything because this wasn't disclosed. The agent went through this whole cockamamie story about a language barrier, impatient buyers, I was next in line, yada yada. If she had said that she was the selling AND buying agent I would have moved on. I feel like she strung me along for no reason.



I'm curious to find out if this is common practice, or if I have any type of recourse, like reporting the Realtor to the local board. Yes, I know---sour grapes, but this all feels very sneaky and underhanded. All comments welcome.</blockquote>
I'm sorry to hear about what happened to you. It is agents like there that really make me think twice about becoming a full time agent. You don't know how many agents I've bumped into that made me want to put my head through the wall....so frustrating. I'll give you a great example...one of my buyers got put in a bad spot by their landlord from hell and after seeing an open house in Irvine were told by the listing agent that he would guarantee that he would get the home if they used him as their buyer's agent (so he could double up on the commish). Well, they were able to get into the home and he is telling them to sign the contingency formal form because it is day 18 even though they have not received the appraisal and do not have their final loan approval. I honestly could care less about the commission and rather see my buyers find a home with or without me, but that listing agent is a piece of work.
 
Thanks guys; I really appreciate your feedback. It's Realtors such as yourselves that give me a (slight) glimmer of hope.



My time is valuable, and I don't want to be/nor do I appreciate being jerked around when I don't have a chance in hell of getting a home, especially when the agent is representing both the buyers and sellers. It's just the moronic stories that were spun that really irritate me to no end. False hope helps no one.



I'm sure my particular situation is just one of many horror stories out there. Oh well...onward and upward! I'll just make sure my BS sensor is turned up a notch or two. ;)
 
unfortunately renbac your story is very common. when i have a short sale listing i only submit one offer to the bank and then keep one additional offer for back up if the fist buyer falls through. when other agents ask to submit an offer or do submit an offer i call them and explain i am not longer accepting offers no matter how good of an offer it is. this just keeps things easy and fair. my goal is to get the house sold and closed with no head aches. LOL if that is possible.
 
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