Special offer

OH MY MR. Realtor, you just admitted to anti-trust violations

By
Mortgage and Lending with Major Mortgage USA/Branch Manager

  I can not believe this, but yet I do.  Some friends of mine are wanting to buy a lot in the community that I live in and I think that is great.  They have used me for their past business and oh I am one of the scuba certifiers on their diving certifications, so these are friends and clients (something that I do not take lightly).  So when they came to me and told me their thoughts and they know I am out of the Realtor side and just the mortgage guy they asked for a few referrals.  Which I gladly gave them and they picked this wonderful agent and I know why, they had met her at my annual duffers and divers party.  So they are off and running. 

BUT

 as they are driving through the community the come across the listing agent and he shows them the property knowing that they are my friends and they are WORKING with this Realtor.  He at some point goes into a speech about how they are trying to keep the prices up and knowing that the market is turning and BLAH BLAH BLAH.  I was out of town that weekend (teaching another scuba class), But they called me and we had this nice laugh about all Realtors saying this to get the commission up car sales people and sales tactics.

   So, tonight they have picked a lot and the Realtor drops off the WRITTEN contract. Normal right????? Well they have offer less than asking price on a vacant lot.  And the listing agents says as he is accepting the written offer

"you know we have a pact here to not accept less than asking price"

Well, as you can guess my cell is burning.  The selling agent knows that this is WRONG and wants back up.

(some side info:  I do hold Employing Broker status in the State of Colorado, even if I am not practicing)

I have advised this Realtor to be the professional and to contact the listing agent in and to confirm his statement. 

AND

IF HE CONFIRMS

TO ADVISE HIM THAT THE CLIENT REPORTS THE SAME TYPE OF COMMENT

AND

DOES HE REALIZE THAT

HE IS IN VIOLATION OF THE SHERMAN ANTI TRUST ACT

ON

PRICE FIXING

 

Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota/Wisconsin Real Estate Expert

I am a little confused by that, hopefully it all works out.

May 12, 2008 01:42 PM
Shaun Wren
AGENTFORLIFE - Lakeland, FL

Good Luck.

May 12, 2008 01:45 PM
Bo Buchanan
Kettley Realtors - Oswego, IL

Yeah Joe, I was having a hard time following you at the end there.  But they would probably need a written offer with a signed rejection. 

May 12, 2008 01:46 PM
Joe Adams
Major Mortgage USA/Branch Manager - Montrose, CO

Let me clarify that this is a written offer to purchase..... and the listing agent has the WRITTEN offer as he makes the comment

May 12, 2008 01:50 PM
Lane Bailey
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy

If the client (seller) is refusing to accept offers less than the list price, that is within his right.  If the agents are doing it on their own, and their client is unaware, then they are also violating their fiduciary responsibilites to the client. 

May 12, 2008 02:03 PM
Maria Holland
RE/Max Homes & Estates, ABR,GRI, CDPE, SFR - Nashville, TN
Realtor, ABR, GRI, CDPE, SFR

I think you have some misspells, but I get the point of the article.  I hate it when other realtors in our profession act so unprofessional and ruin it for the rest of us who are trying to be very professional and above board.  Sounds like the listing agent was just a jerk.

May 12, 2008 02:06 PM
Joe Adams
Major Mortgage USA/Branch Manager - Montrose, CO

Lane, I guess i need to point this out.... the listing agent is say this before EVER presenting the offer and seller is the developer

Maria... I hope I have no typos and what we have here is price fixing..... developer..... listing agent and an implied price fixing plan

May 12, 2008 02:19 PM
Alan Brown
Coldwell Banker Realty - Davenport, FL
34 Years of Real Estate Experience .

Way to go Joe...Keep them honest out there.

May 12, 2008 02:55 PM
Lane Bailey
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy

Joe, I assumed that the seller is the developer... but here is a possible scenario:

Agent for the Seller A takes a few offers to the developer.  He counters each at full price and tells tAgent A that he will take NOTHING below full price.  Agent B hears about this, and as another agent for the seller calls to confirm.  It gets confirmed. 

Agent for the Buyer C calls up agent B.  Agent B tells them "we aren't accepting anyhing below full price... you can send it over, but it's going to get sent back unaccepted... and agent A will tell you the same thing." 

That isn't an anti-trust violation by any stretch.  If the seller is unaware of the practice, it might be a breach of duty, but it isn't anti-trust. 

In order to have an anti-trust violation, you would need OTHER DEVELOPERS to agree to not discount.  And there would need to be collusion on their part.  If I decide that I am not goingt o discount my services, and then you decide you are not going to discount your services... that isn't anti-trust.  If we sit down and talk about it, then we are starting to get in the territory.  If we control the market, then we are certainly running afoul of the rules. 

This still doesn't sound like anti-trust to me.

May 13, 2008 03:00 AM
Joe Adams
Major Mortgage USA/Branch Manager - Montrose, CO

Alan---- you represent developers and you know this one, what do you think

 

Lane, when Agent A says "we have a pact here to not accept anything less than list price"  he is implying that there are many involved......  what he has done is spoken they words to a dirty little secret that all developers here have and yes they are all doing this.  asking price is the price raw land or new construction.  It may not be anti-trust but it is sure on the edge of that slippery slope.  What he should have said when the offer was presented to him is that the developer is not accepting anything less than asking price....... not we have a pact......

May 13, 2008 03:08 AM