Short sale specialists, please chime in and tell me I am seeing this in the wrong light!
A little background; I have buyers who have been seriously looking for about three weeks. Along the way they told me about a home that they had inquired about before they worked with me. That seller was negotiating an offer at the time so they never pursued it.
I looked up the home and found it was under contract but since it was a short sale I kept it on a "hot list search." The contract fell through and the home went back on the market at the same list price of $179,000.
I contacted the agent and he told me the contract had indeed fallen apart and the home was available but the price was going to increase as there had been an appraisal and the bank wanted $210,000. (They might accept $205,000.)
This price put it out of my client's price range but I left the home on the hot list in order to follow any changes. The list price was changed to $210,000 the day of my initial contact with the agent. Today the home is once again listed at $179,000.
I called the agent and after introducing myself I told him I was a little confused. He knew exactly what I was calling about.
He explained to me that the bank still wanted $210,000 and would probably expect $205,000. (The bank wants to clear $178,000.) The second lien holder has agreed to take $1,000. He had taken four offers on the home all between $200,000 and $210,000 but for some reason or other the negotiations had fallen through.
Now here is where we enter the unethical, bait and switch part of this lengthy tale.
He knows the bank wants $210,000. (They might take $205,000.) He changed the price on the listing to reflect that but then he got to thinking.
When he had the home listed for $179,000 he had many phone calls, lots of showings and from those he got offers. So he decided he should list the home for $179,000 and generate the interest.
When an agent called he would tell them go ahead and show the home; by the way, the bank truly wants $210,000.
If a buyer calls him directly and is interested in putting in an offer he would let them know the bank really wants $210,000.
He does not see an issue with this practice.
I checked our MLS rules and regulations. There is nothing in the rules that specifically says he cannot do this. I checked the Florida Association of Realtors website Legal Center and cannot locate anything that specifically addresses this.
I think this type of behavior is unprofessional, unethical and should not be allowed.
What do you think? What would you do?
Interested in buying or selling a home in northeast Lake County Florida, including Eustis, Mount Dora, Howey-in-the-Hills, Tavares and Sorrento contact JoEllen E. Stranger-Thorsen, REALTOR® for all your real estate needs. Visit my website.
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Submit an offer less than 210K because I think eventually the bank will come around. As for the Realtor, I'm not sure. He eventually discloses the truth. What does your broker say?