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Other Agents' Buyers

By
Real Estate Agent with Shinsky & Assoc

I'm sorry, I have to Vent!  As a seller of REO listings, I get so frustrated when buyers choose to work with other agents THEN they call me directly. I have to tell you a story and I promise I'll try not to get so mad I explode! In Texas we have seller and buyer representation. As the listing agent, obviously we are agents for the seller unless a buyer's agreement is signed. My son attends a private christian school and his principal happens to live down the street from us. I listed a lakefront home in our town and after multiple offers and two failed contracts, my son's principal asked for information from me regarding this home. Because the sellers had not given me permission to disclose the terms of any of the offers much less the previous contract terms, I explained to him the Code of Ethics and told him I could only quote to him the list price of the home. That was on a Sunday afternoon. Monday morning he called and told me he was interested in writing up an offer and told me what terms he wanted on the offer and we agreed that I would get the paperwork together and set up a time to meet to get signatures and other required documentation to present the offer to the seller. Once the paperwork was done, I gave the buyer a call, when he returned my call he told me he had decided that because I was the agent for the seller, he would feel better having his own presentation because he knew what the loan balance was when the property went into foreclosure and he did not intend to pay more than that amount. I understood that and instructed him to contact the agent he had already decided to use before he told me he was using another agent. His initial offer was submitted and countered. Here is my first issue with this story. The buyer countered the seller back (which was fine) and instructed his agent to tell the seller that counter was their best and highest offer. The seller's response was a rejection in offer. The next day, the buyer submitted another offer (higher than his best and highest offer-WHY DO BUYERS DO THIS?) This new offer was submitted to the seller. Before the seller could respond, another offer came over, resulting in a multiple offer situation. A request was made to both buyers' agents to have their clients submit their best and highest offers to the sellers. Prior to determining his best and highest offer (REALLY) this christian school principal asked my assistant (a 17 year old student at his school) to tell him what I already explained to him twice was unethical, the terms of the other offer on the table that he was bidding against. To show how awesome my assistant is, she told him that not only was that unethical but that would get her fired and could ruin my reputation and she would not do it. This part of the story is what I have issues with, A LOT! Please tell me I am not the only agent out there that have clients that knowingly ask us to be unethical? After telling someone, especially someone you see often and have a relationship (as a neighbor and my son's principle) that you would not tell another agent something you wouldn't disclose to them, they still try to get information out of you. The unfortunate part of this story is that this is not the first time, nor the last I am sure, time this will happen. So here is my question back to the buyers, WHY DO YOU CHOOSE TO WORK WITH AN AGENT YOU DON'T TRUST ENOUGH TO GIVE YOU ANY AND ALL INFORMATION THEY FIND OUT? Any thoughts from any of you guys? 

Anonymous
Question

Let me ask a quick REO question while you are venting and on the subject of disclosure ethics.

If you are an agent of the seller and you are collecting the bids for a foreclosed property.  Do you think it is unethical to bid yourself or allow another agent close to you know the bids so they or yourself outbid everyone and purchase the property?

Regards

Samantha

Nov 23, 2008 08:02 AM
#1
Anonymous
Nita

Samantha:

The answer to your question is easy, ABSOLUTELY! In my opinion, the listing agents that list these REOs should be just as honest and ethical as they would expect another agent to be to them. I know there are agents in the market that actually probably do this and unless the ethical agents force them out of the business, they will continue to do it. It frustrates me, as a member of the TAR and NAR's Professional Standards Committee to hear agents rely messages similar to this one but when I ask if they did anything about it, they say no, it would take to much time or it wouldn't do any good. I encourage anyone and everyone to file complaints against these agents. I would hope that the agent you have in mind maybe just doesn't realize they are being unethical and hopefully doesn't make a practice of doing it. Have you spoken to this agent or their broker regarding your feelings? That might be a great place to start if the broker really is an active broker in their company. In Texas, there are some companies that have a broker of record but that is all they are, they do not train or really supervise their agents unless someone makes them. Good luck with your situation and if it is in the Texas market you are having issues with, I would be happy to try to work as the Ombudsman (another volunteer position I have) in resolving it.

Nita

Nov 23, 2008 02:39 PM
#2
Anonymous
Anonymous

Thank you very much for your advise.  We will take your advise and contact the agent involved in the transaction.  No need to jump to conclusions and hopefully it might make a small impact.  The situation was not 100% transparent but looked and acted like a duck.  Hopefully it was a pigion.

Thanks again

Samantha

Nov 24, 2008 11:00 PM
#3