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Agent frustration

WorkerBee
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Had a popular agent in our area list our house. My wife is friends with her and she does sell quite a few homes so I didn't really care one way or the other. We ended up having multiple offers on our house over the course of a week.

The best offer was $27,500 over our asking price. It was also the first offer but in hindsight she really stalled on presenting the offer to us by telling us other offers were coming in that she felt would be stronger. She further downplayed that offer by saying she knew the buyers did not have the money. She even went so far as to show us the wife's FB page and said, "do they look like they have the money to buy your house".

She then presented us with an offer $5,000 over asking, the $27,500 offer and one other offer $12,500 below asking. We already had a house under contingency so closing fast was important - in our minds 30 days or less. The $5,000 over offer was portrayed as the best deal because the buyers had their financing lined up, had the financial means and could close in 20 days. (All the offers had letters from lenders with pre-approved limits over the offer price).

We ended up taking the $5,000 over offer. I felt somewhat uneasy because of her downplaying the higher offer and her overall pushiness about the sale but I sat that aside since the wife was not wanting to lose the new house and trusted her as a friend.

Here is why I am frustrated:
Closing ended up taking 35 days, the buyers were not as financially strong as she led us to believe and found out our agent is good friends with the buyers of our house.

The higher offer couple did have the money - found out they are loaded and had already sold their house. They eventually purchased a house around the same price and actually closed a week sooner then we did on ours - even though we went under contract a week before they did.

Furthermore, a good friend knows their agent and he had supposedly told our agent that they were willing to up their offer by $7,500 ($35,000) but she said that we were not interested in their offer because we had to close quickly. She never once told us this.

We still closed on our new house which was the ultimate goal, but I am pissed at our agent. I feel that her handling of this situation was unprofessional. Rant over.
ratfacemcdougal
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You can file an ethics complaint. Start researching here....

https://www.google.com/search?q=realtor+ethics+compaint&rlz=1C1NHXL_enUS718US718&oq=realtor+ethics+compaint&aqs=chrome..69i57j0l5.22463j0j7&sourceid=chrome&ie=UTF-8
Bob_Ag
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AG
You have a right to be upset. Your agent has fiduciary duties and it certainly sounds like she crossed the line on some ethical issues.
Diggity
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AG
I've been in a couple situations like that where I've suspected the listing agent was sitting on/downplaying my clients offer in order to push another one. Usually it's been a financial incentive for them (getting both sides of the deal) but one time it was a friend situation.

I always assumed that no agent would be stupid enough to risk their license/reputation in order to make a few extra bucks but that was probably naive. There's a lot of scummy people in this business, and some of them are very successful. Seeing a few agents in particular pull this crap over and over again with no repercussions is pretty frustrating.
SoTheySay
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S
I'd file a complaint.

I'll never put my offer over another or a friends offer over another on any listing. I've had MY buyers who are close friends lose out in a multiple offer situation on MY listing. The other offer was better.

That's pretty bad.
aggiepaintrain
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AG
file complaint then get a lawyer
Diggity
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AG
It's usually a tough thing to prove misconduct in these cases (unless they flat out fail to show you an offer) but this would be damning if it could be verified

Quote:

Furthermore, a good friend knows their agent and he had supposedly told our agent that they were willing to up their offer by $7,500 ($35,000) but she said that we were not interested in their offer because we had to close quickly. She never once told us this.
Martin Q. Blank
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Quote:

My wife is friends with her
What does your wife think about all of this?
DallasAggie0
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Get your good friend to find out a little bit more
CS78
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It happens. I had an agent in CS verbally accept my offer, then come back and say they had a better offer and ceased most communication with us. I suspected it was BS because our offer was really good and she wouldn't even negotiate further. A few months later I met the buyer by chance and found out my offer had been better but that buyer allowed her to double side the deal and make both sides commission.
CJS4715
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AG
This is bull **** - I might shrug my shoulders if it was a $5k difference, but potentially a $30k difference... nope. I'd want to talk with the broker about it.
Diggity
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AG
Was there a discussion about appraisal during the conversions on competing offers? Assuming you didn't price the property way under market, that would have been a risk with any of these offers, but especially the top one.
WorkerBee
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Wife says our goal was to sell old house and buy our current house so she doesn't really see an issue. I think if our financial situation was different she would see the problem. For me it's the principle.
WorkerBee
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Appraisal came in 22-23k above the better offer. We were priced to sell quick which I was ok with.
WorkerBee
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Thanks for the replies. I have asked my friend to find out more info. The husband is a good guy from what I hear and plays golf also so I'm thinking of approaching him to get how it all played out from their side. Heard they were pissed initially but ended up finding a home that they liked better than ours.
Diggity
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AG
So the appraisal was $50K over list price?

I can see why folks got excited about it.
dubi
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AG
WorkerBee said:

Appraisal came in 22-23k above the better offer. We were priced to sell quick which I was ok with.
Did this same realtor help you set your sales price?
jtraggie99
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AG
Honestly, if I were you, I'd be livid. And this goes well beyond "principle". You guys left a lot of money on the table, and it appears that was largely do to the realtor that you paid to sell your house. And how your wife thinks this is ok is baffling. Her "friend" just screwed you guys out of thousands. And she's ok with that? I would be filing formal complaints with licensing boards and telling everyone who will listen what kind of ethics said realtor has. That is seriously messed up man.

Said realtor was only looking out for herself and her other friend and she has now proven that is more important that doing what is in the best interest of her clients (you know...her job)...
Texker
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AG
+1 on filing a complaint.

Having gone through a buy/sell last year my advice would have been to question EVERYTHING, multiple times if necessary. (Drove my agent nuts, but it worked out.) And trust your gut. So a couple of after the fact points. Hopefully, this doesn't sound like a lecture.

1. Agents are expensive but the great ones are worth it. The most popular agents aren't necessarily the best agents. They are just better marketers. But ever wonder why they have to market themselves so much?

2. I would have conducted an interview with her without your wife present. No interview. No deal. She passes muster, then have a joint meeting. This is a 6 figure transaction. Your money, not the agents. Make sure they are worthy of that trust.

3. HOW did she know the buyers didn't have the money? I would have asked her to prove it before walking away from that offer. Also, what kind of earnest money did they put up? Ask for more! There are plenty of points to negotiate in a R/E transaction.

4. Even if she had a plausible explanation, it's EASY to research online to learn some details on the buyers to help you make an informed decision.

5. The people who don't look like they have $ are richer than an entire block full of the $30k millionaires she associates with. Hell, she's probably one of them.
CJS4715
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AG
Texker said:

5. The people who don't look like they have $ are richer than an entire block full of the $30k millionaires she associates with. Hell, she's probably one of them.


Yea, this bugged me too. How the hell can you tell this from facebook?
94chem
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jtraggie99 said:

Honestly, if I were you, I'd be livid. And this goes well beyond "principle". You guys left a lot of money on the table, and it appears that was largely do to the realtor that you paid to sell your house. And how your wife thinks this is ok is baffling. Her "friend" just screwed you guys out of thousands. And she's ok with that? I would be filing formal complaints with licensing boards and telling everyone who will listen what kind of ethics said realtor has. That is seriously messed up man.

Said realtor was only looking out for herself and her other friend and she has now proven that is more important that doing what is in the best interest of her clients (you know...her job)...
I've never lined up financing ahead of time. The reason? It's so easy for me to get. Honestly, people who have to line it up beforehand are often LESS qualified.

Also, if the people with the higher offer are in a certain "group," I would think there could be some additional problems.
Diggity
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AG
Never change chem!

expresswrittenconsent
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Honestly though, who thought the first "off the rails" reply on this topic would be 20 replies deep and be a "those people" comment?
HomeFinderCody
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Sponsor
AG
Wow.

I can't think of a better response. Just "Wow"

I'm so sorry...sounds like a really bad situation. I'm shocked your wife doesn't think it's a big deal.
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Beckdiesel03
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AG
I can't imagine no matter how well off I was being okay with losing out on 50k for a somewhat easy deal and if my friend did that to me I'm not sure we are really friends.
valtosca
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AG
"Closing ended up taking 35 days" <<< Delays happen, not all the time, but they do.

The buyers were not as financially strong as she led us to believe <<< Short of pulling their credit and doing the same vetting a lender does you have to rely on the Buyer's lender statement.

"and found out our agent is good friends with the buyers of our house."
<<< This is the real problem. Perception is reality and I work like hell to not give the perception that I'm working for anyone BUT MY CLIENT. I represent MY CLIENT, and no one else. Us agents have a fiduciary duty to our clients. An offer way over ask can be worthless IF IT WONT APPRAISE; however, there are multiple ways to mitigate this risk (using the appraisal addendum to name one way... "hey Mr. Buyer, we appreciate the offer but we priced at "X" so are you truly willing pay the difference?). Now, for the appraisal to come in ~$50K over asking!? How in the world is your listing agent that far off!?
94chem
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Diggity said:

Never change chem!




I don't even know how you "line up" financing. You just call some online bank, ask them what their rate is, and then lock it in when you're ready. That's "securing financing." If they want a paystub or something, you send it to them. What does OP's realtor know about "securing financing?" Nothing. All the realtor does is yell at the mortgage broker louder each day as it gets closer to closing. You got screwed over man. Maybe you've got unlimited money, but I'd be going after the agent. Your wife can find a new friend.
94chem
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Some realtors also make up excuses not to do government subsidized loans, just like some landlords won't do section 8 housing, but that doesn't seem like the case here.
WorkerBee
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Well the wife has come around after I showed her the replies on here. Thanks!

Just to clarify some points. Yes our agent did recommend the asking price. We did want to be aggressive because we had a house that we wanted to purchase. Our agent spun the higher offer as being a problem for fast closing so without hindsight I was blinded.

Also got more details:

The buyers agent was also cozy with our agent. Worked with her in the past and they are also good friends.

The higher offer buyers agent was told by our agent that "we" were accepting the lower offer because it was a cash offer. Total B.S. It was never a cash offer.
He also feels that our agents plan was to sell it to her friends from the get go and the aggressive offer over asking put a kink in those plans. Thus the full court press to portray the higher offer buyers as not being able to close the deal. He said that she stonewalled them from the beginning and was a "fu&@ing bi&@h" in his words. He also said that he has never had an agent react to an above asking offer like she did. Supposedly she has done this before. Their realtor did file a complaint and yes we will be filling one also.

Texker
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AG
I hope she gets what she deserves but you have to accept some responsibility for this fiasco. I would have blown her up when she pulled that FB judgemental crap.

Based on your description the warning signs were there.

Do your homework.
Question everything.
Verify.
Re-verify if necessary.
Repeat throughout the process.

This is even more important in a strong economy where people start to get lazy and think they are better than they are. Prosperity is an effective camouflage of mediocrity.
DallasAggie0
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Can you file a lawsuit? Seems like damages would be easy to prove here
Aggiemike96
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AG
Lesson learned: Friendship and Business do not mix.
Diggity
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AG
Aggiemike96 said:

Lesson learned: Friendship and Business do not mix.
Hogwash! It worked out perfectly well for the buyers

Quote:

Closing ended up taking 35 days, the buyers were not as financially strong as she led us to believe and found out our agent is good friends with the buyers of our house.
Old Tom Morris
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Don't stop with the complaint. Sue her. She owes you $35k. With the conflicting lies she told each side that are easy to prove now that you have connected with the buyer's agent, she is fooked.

And your wife needs to understand that this person is NOT her friend and does not see herself as her friend. She boldly defrauded both of you. This is a scam artist that y'all happened to know.
SteveBott
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AG
I'd have a huge case of heartburn over this. At minimum I'd talk to a lawyer
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