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The Short Sale Listing Agent Lost Me A Buyer

By
Real Estate Agent with Coldwell Banker Residential Brokerage BRE#01732313

True or FalseThe first part of this story has a bit more background, but in essence, the agent submitted a ‘lower, pretend offer’ (her words by the way), before receiving and submitting my client’s offer to the bank. My buyers had met her at her open house, where she’d told them she’d hear back from the first lender in two weeks, and that the second would need $8000 to remove their lien. She’d done business with both banks and was confident the response time would be swift.

Once my buyers heard that she’d started the short sale process with this ‘pretend’ offer, they were willing to wait it out, deeming the timelines to be shortened, with the possibility of acceptance at a lower price point. However, it was 5 weeks until we heard anything at all.

The bank countered that bogus low offer, at which time the agent let the bank know that the original buyer ‘walked’ and submitted my client’s offer. My clients were getting antsy – they had to renew their lease or give notice. We weren’t getting weekly updates from the listing agent, our short sale addendum was about to expire and they were reluctant to extend without a better understanding of where they actually were in the process.

10 days later, the agent informed me that the bank had entered a counter (This was B of A). She forwarded a copy of the Equator worksheet, where I could see the bank’s counter. This is where it went sideways in my opinion. She’d entered in a 3% closing cost on the buyer’s side. We’d also communicated that the buyer would pay $8000 to the second lien holder – she showed that as a cost to B of A. That wasn’t in my buyer’s offer! I was really irked that she did not convey the actual price and terms of the real offer. This is now the second time that the agent is lying to the bank!

When my client saw this is writing he was disgusted. He felt that she had created delays with these crazy tactics, and he was adamant. ”That wasn’t my offer! I want her to submit my original offer!”  I totally agree – I can’t imagine how this sort of misrepresentation helps anyone. He gave her 3 days, and 3 days only to respond, expecting more game-playing on her part.

When day 3 was up, he was done. And he let me know that while they’d been trying to buy in the Livermore market since August (they’d lost two others to multiple offers), prices had come down where they currently lived – some 50 miles away, and not an area I work). Meanwhile, I learned that the bank actually had accepted my buyer’s true offer price and terms.

Ultimately, if these buyers find a good home closer to where they work, that is the best thing for them. I’m considering filing a complaint with the DRE, and my former client wants to help in anyway he can.  This whole experience has really got me thinking that many of the delays with short sales are pinned on the banks and their processes. This particular case shows me that the problem was the listing agent, not the bank. I’m sure this happens more than we’d like to believe.

So what’s your take – would you file a complaint on this one?

Comments (13)

Susan Emo
Sotheby's International Realty Canada - Brokerage - Kingston, ON
Kingston and the 1000 Islands Area

In a heart beat!  In a New York minute!!   Darn Tootin!   YES!   And hopefully the result won't just be a slap on the wrist.  I'm so sick of these Phantom Bids whether it be in a short sale or in a multiple offer situation.  These Realtors need to be stopped.   Good luck!

Dec 31, 2011 05:11 AM
Mike Schneider
10 YRS with Active Rain ! - Lake in the Hills, IL
ABR, CDPE, SFR

The situation lacked transparency. Do whatever...but disclose-disclose-disclose. There should be no deception to anyone. The format is commonly used...but must offer disclosure on all points. Good luck..Happy New Year!

Dec 31, 2011 05:24 AM
Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Karen  I would diccuss it with my broker first for his/her input.   Arthur and I just stopped by to wish you a healthy, happy and prosperous 2012

Dec 31, 2011 06:37 AM
Bruce Kunz
C21 Solid Gold Realty, Brick, NJ, 732-920-2100 - Howell, NJ
REALTOR®, Brick & Howell NJ Homes for Sale

Hi again, Karen. This thing is a mess and wrong in so many ways. The saddest part is that the homeowner has now lost a real buyer, who's real offer was approved, and I would guess their chance of avoiding foreclosure.
I hope the agent hasn't ruined other's chances before but I'd certainly want to try to keep her from ruining any more. Definitely a chat with my broker would be in order, then I would hope her's and beyond.  Very, very sad.
Bruce 

Dec 31, 2011 06:59 AM
Christine Smith
Buyers Brokers Only LLC - www.BuyersBrokersOnly.com - Canton, MA
Exclusive Buyer Agent & Attorney, Canton, MA

Karen....as if there aren't enough problems with short sales already!  I would be tempted to report her as well.  Definitely talk with your broker first I think  

Dec 31, 2011 08:41 AM
Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota/Wisconsin Real Estate Expert

You should file a complaint.  No doubt about it.  This was a mess that really should have never happened.

Dec 31, 2011 10:22 AM
Faye Y. Taylor
StepStone Realty, LLC - Floresville, TX
Country Living with City Convenience -Wilson Co TX

Broker first and then file. 

How could she present a fake offer?  If she misrepresented your buyer's offer, that was fake also. 

Where is her brains? 

Dec 31, 2011 11:33 AM
Karen Crowson
Coldwell Banker Residential Brokerage - Rancho Bernardo, CA
Your Agent for Change

Susan, I think there are a lot of parties with culpability where short sales are concerned. Just think if everyone just did the right thing from the get go - maybe we wouldn't be in such a mess.

Mike - that it did. But format or not, it's not a practice a condone. I wouldn't do it, and even less, I dislike my clients to get caught up in it.

Karen - I've got it on my radar for him after our office meeting on Wednesday. He's influential at the state level. I'm hoping he can put this to the short sale task force.

Bruce - I don't think I'm dealing with a 'bad' agent, just one who is very naive and misinformed. Good intent; bad execution.

Christine - no kidding, huh?

Chuck - seems to be a popular theme, and no - it should never have happened. My buyers offer came in time to have postponed the short sale, and as we know now, is one the banks approved. We'd be well into escrow by now.

Faye - yes, and yes.  Brains?  Don't know, but they sure didn't seem to be focused on ethical behavior.

 

Dec 31, 2011 12:33 PM
John King
Bluefax Realty, LLC - San Antonio, TX
President & Broker

Ummm...YEP!

Jan 01, 2012 02:01 PM
Sebastian Barrett St.Troy
Austin Market-Ready Services, Home Staging and Real Estate - Austin, TX

Karen; Forgive my directness, but He!! Yes!  It is the behaviour of such people that have caused so much trouble for buyers and the banks are already not easy to work with.  

Jan 04, 2012 07:27 AM
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Karen

I'd discuss this with my broker first, and have him talk with that agent's broker. Or mayve you can have a 4-way conference. This is not the way to do short-sale...and I don't agree with the "pretend" offer tactic. Dealing with BOA is muddy enough as it is.

By the way, wuldn't the HUD submitted to BOA reflect the offer on the worksheet?

Jan 05, 2012 05:50 PM
Ralph Gorgoglione
Metro Life Homes - Palm Springs, CA
California and Hawaii Real Estate (310) 497-9407

Absolutely!!

If you don't file a complaint, what you're doing is making it easier for this agent to pull this stunt on the next agent.

Agents like this need to learn that they CANNOT pull this kind of behavior because it makes it so much more difficult for everyone, and we DO NOT need this while we are in recovery mode with our current market.

Jan 08, 2012 02:53 AM
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Not submitting your Client's offer correctly was the second biggest mistake. I think I'd try for a Broker to Broker handling of this first since you don't think it was a bad agent.

 

Jan 16, 2012 01:54 PM