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Real Estate Agent Blues

By
Industry Observer

I am not a real estate agent myself, and the agents I choose to work with are not like the agent I am about to tell you about.

I have client swho English is not their first language.  They were introduced to me by an agent I work with.  They wanted to buy a house about a year ago but couldn't because thet did not have permanent resident alien status.  They now have their "green card" and want to buy a house.  They called the listing agent, I am not sure how he got this guys name and phone number, and the agent either didn't ask him if he was working with an agent or didn't care.  The agent showed them a property he had listed and told them to hurry up and buy it before someone else bought it and they lost out.

He some how got them to sign a purchase and sale and give him a $1000.00 check.  They also let someone associated with this real estate agent pull their credit.  But, it is now 1 1/2 weeks later and the guy has not presented the offer to the seller.

Now my clients don't feel they can trust either one of the people they were working with so they called me. 

I am trying to figure out what is going on.  Why is this offer not submitted to the seller?  My clients don't know why it isn't presented.

They called the guy and told him they don't want to work with him anymore and to bring their money back.  The guy keeps putting them off and hasn't returned the earnest money.

I feel so bad for my clients.  I am not sure this is even the best house for them. 

I try so hard to be an advocate for my clients.  Sometimes I can't keep them from hurting themselves.

What is a lender to do?

UPDATE:

Turns out it was another agent in the office who took the original offer.  He did present the offer but because the offer was low, the listing agent and the seller decided not to respond at all.  The buyers agent didn't communicate to my client that the offer expired.  And, he still has not returned the check my buyer wrote. 

He is going back to his original agent and might make another offer tonight. 

The seller however, is adament that he will not take a lower price than what he has it listed for.  I think that is a mistake in this market.

Nora Adkins
Realty Executives - Tucson, AZ
They should be able to withdral the contract anytime prior to it being accepted.  They should contact the broker of the agent they are working with if he will not do this.
Sep 10, 2007 04:51 PM
Karen Inch
Kenmore, WA

Nora,

They really still want this house.  This guy is the listing agent.  Could they then submit an offer with the real estate agent they trust?  Or will they lose the house unless they go with this guy?

Sep 10, 2007 04:55 PM
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes
This seems quite strange. Hope it works out.
Sep 10, 2007 04:57 PM
Rick Grand
nowhere - Eugene, OR
wow! that is a bummer. Sounds like they got pushed into something by a scumbag! I have seen something similar happen. best of luck to them. I hope they get their money back.
Sep 10, 2007 04:59 PM
Nora Adkins
Realty Executives - Tucson, AZ
I think they really need to find out why the offer has not been presented.  If he will not tell them, they should contact the broker ASAP. 
Sep 10, 2007 04:59 PM
Christina Yoon
Anne Arundel Properties - Odenton, MD
contact broker definitely!!
Sep 10, 2007 05:19 PM
Yolanda Hoversten
Self Employed - O'Fallon, IL
Referrals for O’Fallon, IL & the Metro East

Karen, it sounds like they don't know who to talk to and how to go about getting their money back.  If you're willing to find out the broker's name and number and give the info to the buyers, they should talk to the broker about this.  There are ethical and legal issues here that could get this agent in trouble, I hope.

This listing agent is not serving his sellers well and these buyers, too.  The offer probably has expired, in which case, the earnest money should be returned and could easily be done if the check hasn't been deposited.  If they still want to purchase the property, refer them to an agent whom you trust. 

It's amazing that things like this happen.  I'm glad to know that you're helping them out.  Good luck and thank you.

Sep 10, 2007 05:29 PM
Sandy Noll
(RSVP Real Estate) 425.890.0878 - Gig Harbor, WA
RE Pro Serving Snohomish to Thurston Counties

Yes Karen they can use another agent.  Here is what they need to do.  It's likely since they wrote up the offer a week ago, it has expired, but to protect themselves, have your trusted agent fill out Form 36A Withdrawal of Offer, and submit it via fax (as long as they get a transmission report) and he should also call the broker to let him know it is coming over.  Then your trusted agent can write up a new offer and according to Rule 125, they can go directly to the seller because the listing agent failed to present the offer within 24 hours.  I've included Rule 125 for you to pass on to him.  The MLS should also know what's going on and the broker, although I don't know that the broker will do anything at that particular office. 

Rule 125: Presentation of Offers to Owners and Listing Member

  1. Contact with Owner to Advise of an Offer. Members with an existing, signed offer, counteroffer or proposed amendment to an existing contract may contact an owner directly for the limited purpose of advising the owner that the offer, counteroffer or amendment is presently available for presentation, only if that member has first notified the listing agent, branch manager or broker. Such notice may be given by any reasonable means, including leaving a telephone message or by a telefax transmission and must identify all contingencies in the offer, counteroffer or amendment other than financing or closing an existing sale of buyer's home.
  2. Contact with Owner to Present an Offer. Members may contact an owner to present or discuss the terms of a signed offer, counteroffer or amendment to an existing contract, in person or otherwise, only if the listing agent, branch manager or broker fails to contact the member to make arrangements to present the offer within 24 hours after the member has delivered notice pursuant to sub-paragraph (a) above.

Good Post!!

Sep 10, 2007 06:32 PM
Karen Inch
Kenmore, WA

Bob & Carolin - I will let you know what happens.

Rick - I am still trying to figure out who the bad guy is!!!

Christina - Seems I didn't have all the facts, see my update.

Yolanda - I am meeting with the clients and an agent I trust.  I will let you know how it goes.  I am glad my clients came back to me.

Sandy - Seems the offer was presented.  But the listing agent and seller chose not to respond.  That is so weird in this market.  It does bother me that the listing agent keeps calling me.  This is not usually how my transactions go. 

Thanks for the comments everyone!!!

Sep 12, 2007 12:16 PM
Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Karen, contact the broker!!  Thanks for visiting my blog and commenting.  AR is a great community with a ton of useful content.

Mike in Tucson

Sep 30, 2007 08:36 AM
Karen Inch
Kenmore, WA

Mike--

I talked them into buying a totally different house that for the same money gives them 1 1/2 times the square footage and the people were willing to work with them.  Thanks for your comment.

Karen

Sep 30, 2007 08:56 AM