Let's admit to the elephant in the room: Listing agents are manipulating the process to double-pop their listings
I've been writing tons of offers for my buyers. Some of them ridiculously over asking with terms that are just short of pledging their next unborn child into the deal!
But Zip! Zilch! Nada! No acceptance.
I decided to follow up on a few of these listings as they have closed and pulled up the MLS info after closing, and lo and behold - the same broker was representing the buyer on the deal.
Many times the offer I submitted was lightning quick. We wanted to show the seller we were being aggressive and were stepping up to the plate with all of our I's dotted and T's crossed.
Then what? It seemingly takes forever to get a response, and then when we finally do it's "Well, the seller wants to wait a while to see what offers come in"
If you are a seller and receive an offer that is all that plus a bag of chips, way over asking, why on God's green earth would you choose not to respond to it in a timely manner?
Here's one reason: The listing agent wants more time for a buyer without representation to step up so that they can double-pop the listing. Or perhaps they weren't expecting such an aggressive offer so quickly so they need more time for their buyer in the wings to draft an offer to compete with that.
So there 'ya go. I just said it. But you have to admit, you know it's what we're all thinking and we all know already.
And honestly, how many agents do you think are withholding the submitted offers from the seller until they've had the chance to find their own?
And just because there's another agent from the same brokerage or even a different brokerage representing the buyer, it doesn't mean that it's a "straw" representation that the listing agent has set up. I've known plenty of agents who have done so and paid the other agent $500 just to write up the offer for the buyer.
So there 'ya go. I just said it AGAIN!
And at the same time, I'm not going to pretent to be Mother Theresa. Have I had listings where a buyer has stepped up without an agent? Of course!
But you can bet on one thing - I NEVER would withhold communication from an agent that has sent in an offer. I personally choose not to represent both buyer and seller on a transaction, so if a buyer steps up I refer it to my partner. But again, we make every effort to be as fair as possible to everyone, and if that buyer who steps up without an agent is in a bidding war, then you can rest assured that they will have to step up to the plate price and term wise just like everyone else.
You're not doing the market nor the seller ANY justice by not allowing the market to drive the price point where it should be by allowing a buyer that you or someone you've referred it to circumvent the price war in a multiple offer situation. In fact, you're not doing ANY of us justice by not allowing the natural course of recovery that our market so justifiably deserves after seven years of depression.
I my neck of the woods, if there is a mutliple offer situation in which the same brokerage is representing one of the buyers, it is mandatory that the management of that brokerage be a part of that process and make SURE that the seller is aware of ALL offers.
So as a result of all my my hard work as well as the hard work and effort of my buyers that I'm desperately trying to get into a home right now, I've decided to take the DIDS approach (Do It my Damn Self!!).
I'm sending out hundreds of letters each week to certain neighborhood homeowers seeing if they are interested in selling and letting them know I have a well-qualified, willing and able buyer at the ready.
OK. So there ya go. I let the cat (or elephant in this case) out of the bag.
What's your opinion?