Conflict of Interest or is it "JUST" me?
As a Professional REALTOR(R) I understand that Real Estate is not a Cookie Cutter Business. All Transactions are different, including Real Estate Professionals. Its Reasonable to have a Buyer to Cross Qualify with the Listing Agent Preferred Lender, to ensure the "DEAL" will Close Escrow. Here is my dilemma, and my Opinion of the Matter.
I represent a Home Buyers, which I've been assisting for sometime trying to find them right Home. Periodically the Lender will contact my Client to get an Update of their current Status(Financial, Credit, Debts etc.) They are well Qualified.
I have located a suitable Home that they wanted to submit an offer on. I "Comp" the Area to find if the Asking Price where it should be, and "NO" its not. Its $20,000 Overpriced, but we submit the Offer at Full asking Price Contingent upon Appraisal. The Listing Agent respond saying if my Clients use their Preferred Lender, my clients will not pay Closing Costs. No thanks, we're satisfied with our Current Lender, but we still ask to have some Closing Costs Paid by Seller. Listing Agent still insist my Clients Cross Qualify with their Preferred Lender, and try to solicit Business again. A Reg Flag went off, and I asked why are you interested in my Clients using your Preferred Lender? The Listing Agent went on about Interest Rates, and how their Lender was the Best. Our Answers was no. Then I asked the Listing Agent what is the Relationship between you and your Lender? Its her Daughter.
So I check the Bureau of Real Estate Website and the Listing Agent is the owner of the Preferred Lender she requires Buyers Agent to Cross Qualify their Clients. We had a Long Conversation in regards of Ethics, Fair Dealing, and Truth.
In my Opinion if a Listing Agent requires a Buyers Agent Client to Cross Qualify with their Preferred Lender, and the Listing Agent has a Financial Interest in the Lending Company, a Disclosure of Affiliation should be given.
What is your Thought of this?