Profile picture for moranman

Case of deception?

I made a good offer on a bank owned foreclosure and my agent thought it was exceptional. my agent warned me of this agents practices saying in every

instance of dealing with the listing agent there was always a of "there are multiple offers". Give me your very best offer. I offered $100 over asking  more than my first offer (this is a foreclosure). I also called the listing office twice to find out about the property directly and on those two different occasions, on that same day, I was first told the property had an accepted offer, and then I was put on hold only to be followed up with a correction that there were 3 offers on the property. All best and final offers were to be sent to the bank that owned the property the next day but my realtor got a call very late that night and was told I had out bid the rest, we got the property.

He said, I feel sorry but there is no way of proving that she uses these tactics. I checked with the MLS and Realtors associated ethical conduct and this is not one of the specific areas covered, only generalizations of honesty and integrity. She only sells REO properties. What can I do?

  • March 26 2014 - US
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Answers (10)

Best Answer

Bank owned properties very often receive multiple offers. If the listing agent said that the bank was asking for everyone's Highest and Best then that's probably what they were asking for. There really isn't any way that you would know if there were multiple offers on the property or not. I would just be happy that you are under contract and start moving towards closing. Hopefully you really like the home and will be happy once everything is done. 
  • March 26 2014
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I also get suspicious but there is absolutely nothing I can do.   I do like selling my own offices REO's because we will not tolerate dishonesty.  I wish the whole world worked that way.

No way to prove anything so I think in this case  that if you were able to get the house at a price you were willing to pay you have nothing to worry about so don't worry, be happy.

  • March 26 2014
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I regret that we're not helping, but then again, our advice is free.

In my experience, the people who list foreclosures don't care enough about the seller - who in reality, is some hireling in an office somewhere - to be deceptive. They may be charming and engaged, rude and detached, but their job is to handle offers.

It is likely that this listing agent has this reputation because their listings are often underpriced, and that may be their doing or the hireling's doing; in either event, underpriced listings bring multiple offers.

The listing agent isn't going to counter any of the offers directly - they don't have the authority. In my experience, you either put forth your best offer or get into the "backup" line. 

The listing office is less likely to know about the presence of offers than the listing agent is; this may surprise a lot of folks, but when I receive offers, I don't immediately inform my office managers. If you want to know how many offers I have on a property, you call me, not the office.

To summarize, I think that your agent may be trying to shield you from the realities of dealing with REOs. I don't doubt that he's had his share of unpleasant experiences in representing buyers on bank-owned properties, but it is the price we pay for getting our buyers into cheaper properties.

All the best,
  • March 26 2014
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Profile picture for wetdawgs
You write "Are there means by which an unethical broker can be investigated?"  The local/state board of realtors will investigate complaints.   The onus of proof would be on you.  
  • March 26 2014
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Sadly you can never tell if there were multiple offers but if it was a decent house at a good price than I would expect many offers.   Buying a short sale or foreclosed property can be difficult sometimes and the decisions can come slowly from the bank. Don't blame the agent.  If you consider the agents commission how much extra would it actually be if you paid a few hundred or a few thousand over the first offer.  Not that much to risk losing the sale if you ask me.  Don't forget that the terms of the sale can be just as important as the money. 
  I think you need to be happy that you won the bidding on the house and probably paid a lot less than market value for it. Move on, start packing and enjoy your new home.   
  • March 26 2014
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Profile picture for Dunes ..
What can you do?..IMO
Based on your experience, the responses here or on other threads/questions about the same topic,
(Can the seller's agent say they received an offer if they didn't?) you can and should be forming a fairly strong opinion/view about "Case of deception?" and/or about generalizations/claims of honesty and integrity..


  • March 26 2014
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Profile picture for moranman
It seems all realtors are defensive over this issue.  Your not really helping. Is there an agency that can look into this?  Say no or say yes and tell me who.   Let us assume that this realtor knows that no one can question these unethical practices.  What would make her stop?  apparently nothing and no one.  This is one reason realtors are not trusted.  They are a protected business profession.  Aren't they?

I got the house.  I am not angry.  I want answers though and you would too if you were lied to and ended up paying over 10,000 more dollars when in fact, she had already "accepted" my offer.  Wouldn't you all be interested in the business practices of a builder who cheated you out of $10k or if you were lied to on a purchase of a car and paid far more because of the lie.  

Realtors should be ethical in all matters but, it is a hard business and sometimes thankless, am I right?  So rather then psychoanalyze me, or suggest I might be wrong.  Answer the question.  Are there means by which an unethical broker can be investigated?   If not, then it is a protected class.  Right?  If there is a way to investigate then tell me.  There is no way of knowing - so you answers are 'too bad dude, live with it'.   I don't find that particularly kind or professional.   I love this cabin and I was ready to put another $25k down to get it... because I still had time to get my offer in before the bank would get it by 2 in the afternoon.  But, somehow, before midnight, the property IN TRUST of the broker, was mine the night before.  I only found out when I was ready to pay in excess of $35k more over a very honest, and very good offer, very close to the asking price.  

 
  • March 26 2014
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Profile picture for wetdawgs
What can you do?   be happy you won the bid and move forward with purchase. 

As a consumer, I am uncomfortable with some real estate practices that seem shady.  However, I also know that having documented facts to prove misconduct is far far harder than having suspicions.   
  • March 26 2014
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There is no way of knowing if there were other offers or if yours was more than the others.  Your agent should not be "disrespecting" the other agent unless he has proof of improper activity.  If he has proof then he should report the agent.

Having said that, the agent asked for your "highest and best".  This action is what they get paid to do by the seller. Get the best offer possible.  If you bid more than you wanted to than you bid above your "highest and best".  It sounds like you are angry that you did not get the property for less than what you think it was worth.  Just because it is a foreclosure does not mean that the seller wants to give it away.  They want to sell for the most that they can get.

With any property sale you have to know what it is worth and what you are willing to pay for it.
  • March 26 2014
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Profile picture for Outer Banks N C
You can be happy you got the property you placed an offer on. That's what.

  • March 26 2014
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