Multiple Bid Situations - Dutchess County Real Estate

By
Real Estate Agent with Prudential Serls Prime Properties

There has been a lot of activity recently in Dutchess county and especially in East Fishkill real estate. Many buyers and low inventory are causing bidding wars. This is producing some business complications that we haven't seen in many years. The question of ethics has been coming up more and more, as things become more tense and competition for homes increases.

A few weeks ago, I had a listing in which several buyers were interested. After moving ahead with one buyer, another higher offer came in, and I approached the first buyer's agent to give them an opportunity to increase their bid. We always try to give the first buyer the chance to improve their bid if a higher offer comes through, because the first buyer was already committed.  However, this buyer did not want to come up and my seller then decided to proceed with the second buyer. The first buyer's agent was quite displeased. However, it was my seller's choice and I must do what's in my seller's best interest. 

Conversely, another situation was when a buyer of mine lost a house the day that his attorney was supposed to receive the contracts for him to sign.  I had negotiated the deal and spent much effort on putting the transaction together so that all loose ends were tied up and everyone was satisfied with the terms to move forward.  Late in the day, I received an email that the sellers weren't proceeding with my buyer, saying he had been too slow.  However, his attorney had never received contracts so he couldn't have moved forward any faster. 

It was later found out that there was another deal on the table with a second buyer for that house with whom they did move forward. This was all unknown to us at the time. They never gave my buyer, who was first, the chance to increase his bid although he was well-qualified and making a substantial down payment. Additionally, the listing agent never disclosed there was another accepted offer which is a violation of the Realtor code of ethics.  She also did not deal fairly and honestly with my buyer or myself, which is another violation.

The difference between these two situations is disclosure.  Generally, most real estate agents work together honestly, although on separate sides of a deal. We're all supposed to work by a standard of ethics. The listing agent representing the seller, and the buyer's agent representing the buyer.  Both agents are supposed to have the same end goal in mind - to sell the house and have both clients happy. Unfortunately, when the market is in such a turmoil and with limited inventory, some honest and ethical lines are being crossed.   This is one of the reasons why it's very important to pick your real estate agent carefully.  Not all agents are alike!  Make sure you pick someone who is experienced, professional and of good character.  Ask potential Realtors for references from past clients, and look them up online to see if there are any online reviews about them. Doing this homework ahead of time will save you headaches in the future.

 

Feel free to email or call me about any East Fishkill Real Estate or East Fishkill homes for sale. 

Posted by

Catherine Menichino
Prudential Serls Prime Properties
NYS Licensed Sales Associate
2537 Route 52, Suite 1
East Fishkill, NY 12533
Phone: 845-223-0601
Cell: 845-475-1373

Top Listing Agent for East Fishkill Office - Dec 2011



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