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Mr. Listing Agent You Are Not Making Mrs. Buyer Feel Confident.....

By
Real Estate Agent with KB Home Bre # 01424127


Mr. Listing Agent You Are Not Inspiring Confidence in Mrs. Buyer,  much less a warm and fuzzy feeling. I realize this is my responsibility but you are making my job extremely difficult!

To the contrary your actions are adding additional stress to an already hugely stressful event. Mr/Mrs. Buyer, whom I represent, have committed to purchase a short sale transaction which was not a decision made lightly. We researched, analyzed and discussed the possible ramifications but the buyers want this home and are willing to take the gamble.

Issue # Oneblue house with rain clouds, rain drops

So imagine my dismay when the day after receiving the executed contract Mrs. Buyer discovered the listing was still showing as Active on the MLS. Now according to CAR in the article MLS Short Sale and REO Issues,

Legally speaking once an offer has been accepted and signed by both buyer and seller, a contract has been formed. The contract is contingent upon approval from a Lender but there is an acceptance which triggers the requirement to change the status on the MLS. 

I contacted the Listing Agent and was told his policy is to keep an active status when dealing with short sales due to the high percentage of buyer fall-out. I have forwarded a copy of the CAR article and continue to wait on his response. (I'm open to any other suggestions.)

Issue # Two

Now a second issue has reared it's ugly head. Guess what? On Saturday, Mrs. Buyer decided to do a drive-by and show off the new home to her friends. The Listing Agent was holding an Open House! Mrs. Buyer called me quite upset. I did my best to reassure her and calm the situation by explaining the Agent may have previously made arrangements for an Open House on this date prior to receiving and accepting our offer. However we have a fully executed contract which is legally binding.

Still I called the agent to confirm the truth of my explanation. I suggested that future Open Houses be cancelled as it could be misconstrued or considered mis-representation.

Article 12 of the NAR Realtor Code of Ethics states "Realtors shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing and other representations."


Issue # Three (If there is a # 3 I'm afraid we will be out and the buyer will cancel)

I understand your responsibility is to the seller and you are a busy agent but Mr. Listing Agent "You are not inspiring confidence in Mrs. Buyer! Perhaps if we work together we can keep this deal together. I am not your adversary and keep in mind these qualified buyers want to purchase your home.

Honestly I would not be surprised if I receive a call from Mrs. Buyer asking to view more homes.



Posted by

 

If you are considering  buying or selling new construction in the Inland Empire ~ Give me call or email me 

Cause We Like Em' New!

 

Kristal Wilson                                           

cell: 951- 288-7079

Shoot for the moon & if you miss you'll be among the stars

 

 

Anja Kerstens, 669.270.8034
Compass - Morgan Hill, CA
GRI, NHCB, CDPE, CHS. Silicon Valley Homes

Kristal, You may want to do some research on Mr. Listing Agent.  What is his reputation and he short sale success rate?  I am frankly shocked about the attitude of this agent.  Yes, he wants to make sure he has a back up buyer but he should have changed the status and added in the remarks the he will take back up offers.  

He can keep the house open of course but disclose that it is under contract.  I think you do not have a fully executed contract until the investors approve the short sale.

Good luck with this agent and your buyers.  It may have to continue shopping for a home even though they want this particular property.

This happened to my buyers too.  While we were waiting for a decision by the sellers on our offer my buyer visited the open house without telling the hosting agent (not the listing agent) that she made an offer on the house for $750,000. The agent proceeded to tell her the home was appraised at $735,000 and if she would offer that it would be sold. Strange but the sellers didn't accept our offer and now after 4 months it just closed for .... you guessed it $735,000.  

Aug 22, 2011 02:05 PM
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

Forrest Gump had it best....stupid is as stupid does, right?  Amazing. Publish this in 100 ways to blow a sale!

Aug 22, 2011 02:34 PM
Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

Many agents here hold open houses in order to seek backup offers, especially on short sales.

Aug 23, 2011 01:30 PM
Kristal Wilson
KB Home - Fontana, CA
Cause We Like 'Em New ~ New Home Specialist!

Anja ~ I should have done the research before the clients fell in love with the home but now we're in the middle of the transaction and we just need to work together.

Larry ~ I don't understand why we are not working together to close this transaction. 9Sounds like a great blog - 100 ways to blow a sale.)

Jim ~ I can understand holding the house open (as long as it is marketed as being under contract or accepting back-up offers) but combined with an active listing status & holding open houses the buyer is very nervous.

Aug 23, 2011 01:45 PM
Deborah Nance
Orange County, Corona, Riverside, Los Angeles - Corona, CA
Southern California , Reverse Mortgage Specialist

This is an important article Kristal. Accepting BackUp offers is one thing, but leaving the listing as active on the MLS is just plain wrong.

Aug 23, 2011 02:52 PM
Laura Sargent
Carolina One Real Estate - Mount Pleasant, SC

You certainly have the codes to back up the issues.  The open house doesn't surprise me especially if the home is nice and located in an easy to see location.  

Aug 24, 2011 04:48 AM
Kristal Wilson
KB Home - Fontana, CA
Cause We Like 'Em New ~ New Home Specialist!

Deborah ~ There is a lot of confusion about MLS status regarding short sales.

Laura ~ I decided to research the codes because I have seen this issue before. In my area it is not a common practice to hold an Open House if it is contracted.

Aug 25, 2011 05:23 AM