Profile picture for cworld646

Can a realtor suggest a low offer for a buyer, then accept a higher bid from 2nd buyer?

A low ball bid was suggested by the seller's realtor so we bid lower than we would have.  This realtor waited until the last minute before showing the seller our bid.  Then a 2nd buyer offered a bid and the seller countered whereas we have heard nothing.  Is that legal?  It seems very unfair and a bit pre-meditated.
 
  • June 17 2013 - Oroville
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Answers (7)

Profile picture for Dunes ..
At this point the IF is what makes this pos/threadt a bit interesting and at least for the moment provides some interesting posts plus possibly some useful thoughts for any that accidentally pass by ;)

Recognizing that we do not know diddley about what really occurred and that there are a multitude of possibilities  ... like did the Buyer even have an Agent, seems to be an assumption they did

My only point, my only opinion at this time is IF..
The Realtor representing the Seller suggested to a buyer or to a buyers agent to make a low bid?

Then I think that's serious..couldn't care less about the National Association of Realtors Code of Ethics less kind of serious..
Personally I'd do all I could and would recommend to anyone they should...put all I had together, talk with an attorney and file a complaint with the State Real Estate Commission to learn what they figure Legal or Ethics are

If I was the buyer I'd discuss it with the Seller and see if they felt their Agent had represented their interests
Bottom line for the sake of discussion ;)
I'd say the Buyer and Seller at the very least would/should be filing complaints


Again reemphasizing
Recognizing that we do not know diddley about what really occurred and that there are a multitude of possibilities (If a Buyers Agent was involved it throws more and changes what is in the pot ect ect ;)
  • June 17 2013
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Profile picture for Mike Bottaro
Was this a short sale or bank owned property?  This is the only way I could even see this possibly happening,  And even if the listing agent does represent the bank he/she should still try to maximize the sale price for the bank if he/she wants to have a good reputation and retain business in the future.  If a listing agent recommends bringing a low offer it really questions his integrity and credibility as an agent.  And as Michael mentioned below, "Where the heck is YOUR Realtor?"  This feed is really an embarrassment to our industry.

  • June 17 2013
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Profile picture for SoCal Engr
Interestingly, I checked the 2013 NAR Code of Ethics, and did not find anything that seemed to explicitly prevent the described behavior, provided that the seller's REA did not disclose confidential information.

"A low ball bid was suggested by the seller's realtor so we bid lower than we would have."

At face value, this seems unethical in that the REA appears to be working against their client's interests. I'd be curious as to...
 (a) Where was the buyer's REA in this scenario, and what was their advice?
 (b) Was the suggestion made directly to the potential buyer, or conveyed by the buyer's REA? If the second scenario, how does the buyer know that the suggestion originated from the seller's REA?

"This realtor waited until the last minute before showing the seller our bid.  Then a 2nd buyer offered a bid and the seller countered whereas we have heard nothing."

Again, how does the OP (buyer) know that this is how the scenario played out? Where is this information coming from?

"Is that legal?  It seems very unfair and a bit pre-meditated."

Assuming that events occurred as described, those are interesting questions. It definitely "sounds" pre-meditated, but that would all depend on the nature of the second buyer, and any personal/business relationship that buyer has with the seller's REA.

If anyone has been treated "unfairly", it's really the seller; assuming that the low-ball bid was solicited by the REA to "soften" the seller for the second offer. But, that implies that there has to be some collusion between the REA and the second buyer.

At first blush, this all seems highly unethical under the walks/quacks like a duck rule. But, there doesn't seem to be anything in the NAR CoE to prevent the REA from making suggestions to potential buyers - assuming that the suggestions were actually made by the seller's REA.

Second nefarious scenario...

The seller's REA was not complicit in any of this, but it was orchestrated by the buyer's REA, working with both buyers. Purely conjecture, but no more so than what has been posted so far.

Which all leads back to the core questions?
-- Was recommendation made directly, or passed on by buyer's REA?
-- How does buyer "know" how their offer was handled, and the timing-and-handling of the second offer?
  • June 17 2013
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Profile picture for Dunes ..
And I'm wondering what the heck the sellers Realtor is doing suggesting to a Buyer to put in a low bid? ..
IF that's what happened

Seems like there is a big difference between the Sellers Agent (Representing the Seller, being paid to represent their best interests) telling a buyer..make your best offer or put in a low offer

Yes the seller accepts the best offer presented to them but doesn't seem if the above is what happened the Seller was getting the best offers or what they were paying for and seems like a lot of possible scenarios were not allowed to blossom ...that the Realtors action would impact both the buyer and seller negatively.
In a negative enough way for this not to be a serious matter.

Example
Would the buyer have put in a higher offer if not given that advice?
Looking at 2 completely different offers than presented would the seller have done a..make your best offer?
Could the Seller have gotten more than they did?

I think if the Sellers Agent did the above the Buyer and Seller both would have legitimate complaints..serious legitimate complaints against that Realtor and even more questions to ask and checking out to do..

Was the successful buyer the Realtors cousin Waldo or or or? ;)
  • June 17 2013
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The Realtor doesn't 'accept' the offer, the seller accepts the offer. It's the decision of the seller to decide whom to negotiate with and (once again) not the Realtor. Like snow flakes, no two offers are identical.

And what are you doing taking the advice of the sellers Realtor? Where the heck is YOUR Realtor.
  • June 17 2013
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Profile picture for Dunes ..
"suggested by the seller's realtor"

cworld...To avoid confusion and to increase the odds of you getting some opinions/suggestions/advice that will help you

Are you saying the Realtor representing the Seller suggested you make a low bid?

If so I'd ask why was the Realtor representing the Seller suggesting what you should bid/pay for their clients Property?
If I was the seller and learned of that I think I might be just a bit peeved. Makes me curious and reading the rest makes it all seem even odder....
  • June 17 2013
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An agent must present all written offers to the seller as soon as possible.  In your case, you did not specify the amount of time between the bid/offer being made and "the last minute", but it is a subjective thing.  Also, did this agent represent (was working with or for) the 2nd buyer as well?  If that's the case, then it sounds fishy BUT it's not a matter for an online website but for the respective brokers and possibly lawyers to resolve.
  • June 17 2013
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