Unethical agent

E

edhne

New member
Hi,

I wanted to get some feedback on a bid I had put into an REO property.
I offered 800k and offered 20% down pre-qualifed with 760+ credit score.

This was 10,100 more than asking price. I submitted my offer first (the agent confirmed this). After the bidding was closed, the agent simply stated that I was the backup offer but the bank decided to go with another offer.

Well I waited 40 some odd days and the house just came out of escrow. The closing price was exactly at 800k and surprise surprise, the buyer's agent is the listing agent. She double-ended the transaction. I highly suspect that she let her client know what my offer was and then simply decided not to even offer me to make a counter offer.

I am waiting to see the transaction records to confirm that the downpayment was exactly the same as I had offered, but the fact that the offer was EXACTLY the same amount, not even a $1 more, she basically told her client what to bid and then ignored my offer.

Obviously, the house is gone...but what can I do to make sure that she thinks twice before doing this again? Isn't her primary responsibility to the bank if the exact offer game in and if either of us is interested in raising our offer?

I will withhold the name of the accused until the lien information is posted to verify what the down payment was but this really pisses me off...
 
Sorry to hear that happened to you, but I do feel your pain and frustration but there's nothing that you can really do unfortunately.  Some banks issue best and final multiple counter offers and some don't, that's just how it is.  If you thought your situation was bad, then you'll really think my buyers got screwed over royally.  Back in the fall of last year there was a detached condo over in Northwood Pointe that was an REO.  My buyers had put in the HIGHEST offer at $740k putting about 50% down.  I come to find out the bank went with an all cash offer at $700k.  How's that for getting screwed (the listing agent did not double dip on the commission).  Then I lost one of my buyers when they went to an open house in Turtle Rock and the listing agent told them that if they wanted to get the home they'd have to submit the offer threw him.  Oh the joys of real estate.
 
At least there is some crazy basis to say that the expected value of an all cash offer is equal or higher than a financed offer, not matter what % down. That is just how they do their calculus. This case sounds more like your 2nd example, just an unscrupulous agent.

I understand the final and best with an offer, especially with a bank, but what if two offers are exactly the same? What are the odds of that when it was actually higher than asking. to the dollar the same?
 
That is why I almost always suggest that my buyers make up the last 3 numbers.  Like $800,888...then you'll know no one bid the same amount as you did.
 
that's what i have seen as well. if u pursuing a short sale, make sure u go with the listing agent, otherwise they ignore ur offer or keep it till they get 1 of their own.
 
I really like a home and the asking prices was $650k listing outside the home, ..... I called the listing agent and I told her I want to offer $700k and she told me that she had submitted the offers to the bank and the highest is $670k and she will put me as a backup ..... and she told me to sign a contact with her as an agent to look at other properties ......

The home was sold at 670k to someone else ..... and I moved on...
My friends bought short sell homes and some lower than the asking prices .... there are all sort of under table dealing with the owner and the listing agent .....

I refuse to do those under table deals but maybe that is something you want to try to hint to those agent and seller .....

Mike
 
If you can find out who the lender holding the property was, then locate the asset manager, and finally if you can document the offer and it's pathway forward without results, you could start to cut off this Realtor's access to REO property. That will get some notice from the Agent involved. I'd suggest scanning other listings of this Agent to see how many are being double ended, or at minimum sold to people within their RE franchise.

On the one hand, it will take some time and effort to get something to happen that will satisfy your anger at the process. On the other hand it may not be worth it, but I hope it does get done somehow. These Agents need to be bounced from the business. Unfortunately there aren't enough people pissed enough (yet) to make it happen.

My .02c

Soylent Green Is People.
 
Why not post the names of these agents?  At least then future customers may run across their names when doing a google search.
 
I wonder if there is a way to talk to the REO bank directly to make sure your offer gets tendered properly and to communicate you are willing to counter based on other offers.

There is no real oversight to this and this happens all the time in non-REO transactions (we were willing to take a lower cash offer over a higher financed offer).

In your case, while you are looking it as the agent making more because they double ended the commission, from the bank perspective, they made more since I assume they cut the commission rate because of the double end (ie 4-5% instead of 6%). Sure, you should have been contacted for the opportunity to counter but what if the matching offer was 100% cash? And would you have countered an extra $267000? That's what I calculate would be needed if they got an extra 1% from the price of $800k ($8000) and you needed to counter with an offer to make up for that.

EDIT: And thinking further about it, even if the agent submitted both offers to the bank... the bank would take the double-end because that savings in commissions is more than a counter. This is probably why short sales prefer single agent transactions and why Redfin doesn't do them because they know this.
 
What is a going commission rate now days for selling?  Is it the full 6% or 5%?  It looks like houses are selling themselves in Irvine due to low inventory.
 
Irvine2Irvine said:
What is a going commission rate now days for selling?  Is it the full 6% or 5%?  It looks like houses are selling themselves in Irvine due to low inventory.
Click to expand...
The standard is 5-6% and can be split however the seller likes, but at the end of the day everything is negotiable. 
 
I emailed the listing agent to give her a chance to explain. If she doesn't, then will definitely post her name. As for all cash, it was not all cash. It was financed, i know that for a fact.
 
edhne said:
As for all cash, it was not all cash. It was financed, i know that for a fact.
Click to expand...
Even if it was financed, as I said, 4-5% on $800k is better than 2.5-3% on $800k... and 1% to the bank is also better.

Should the agent have called you back and asked if you wanted him/her to represent you too?

Just trying to be devil's advocate here.

1. Agent has an offer for $800k from someone who has an agent.
2. Someone without an agent will also pay $800k.
3. Agent makes an extra $8000+ and the bank saves an extra $8000+... which offer would you go with?
 
Your devil's advocate position is only from the view of the agent in question.

The nature of the her unethical behavior is in question, not her math skills.

Even IF she didn't share my offer number, given the same offer, she should have asked if either of us wanted to raise our offer so that bank could possible have earned more than that 8k. If neither of us would have budged, and she was willing to take a cut in commission vs my agent was not (after he was asked), then your #3 choice would have been serving the interest of her PRIMARY client, the bank.
 
edhne said:
Your devil's advocate position is only from the view of the agent in question.
Click to expand...
Which is what a devil's advocate position is supposed to be... from the opposing side. And also... it doesn't mean I agree with that position, just presenting it.
The nature of the her unethical behavior is in question, not her math skills.
Click to expand...
"Unethical" is a vague term that varies by perspective. That's not something I am trying to get into... I'm just taking into account the items you presented. It's much easier to argue math than ethics.
Even IF she didn't share my offer number, given the same offer, she should have asked if either of us wanted to raise our offer so that bank could possible have earned more than that 8k. If neither of us would have budged, and she was willing to take a cut in commission vs my agent was not (after he was asked), then your #3 choice would have been serving the interest of her PRIMARY client, the bank.
Click to expand...
There are a number of ways this could have been dealt with but I doubt any of them would have resulted in a net gain of $8000 for her if she were to go with you and you would keep your agent. Maybe she could have presented the situation to you and you could have discussed it but once she took on the other buyer as her client... she had TWO primaries... the bank and the client... in which this deal benefited both. This is why double-ended transactions are always suspect because it's hard to discern whose interest the agent is actually serving (and this would definitely not include yours).

Is it really unethical? I can't say. I do know that when we had two competing offers on the property we sold, one was a double-ended deal and the other was a buyer's agent. We were set to take the double-ended deal even though it was a lower offer because the lower total commission reduced our fees. The other buyer raised their offer to match what it would have cost us with the double-ended deal and although our agent got less of a commission, he was more interested in selling the property quickly than raising his take. Again, these things are so hard to police.
 
edhne said:
Your devil's advocate position is only from the view of the agent in question.

The nature of the her unethical behavior is in question, not her math skills.

Even IF she didn't share my offer number, given the same offer, she should have asked if either of us wanted to raise our offer so that bank could possible have earned more than that 8k. If neither of us would have budged, and she was willing to take a cut in commission vs my agent was not (after he was asked), then your #3 choice would have been serving the interest of her PRIMARY client, the bank.
Click to expand...

Some things are worth fighting, some things are not. You are wasting your time on this one. There will be no consequences to the agent. Let it go and move on. Its not worth the mental anguish.
 
You must log in or register to reply here.
Back
Top