Realtor gave an off-market property I found to another client

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Realtor gave an off-market property I found to another client

Alex Holmstrom
Investor · Member since 2026 · 15 posts · 15 votes

I found a property in my neighborhood that was off market but in the process of getting ready to be listed as an estate sale, and the asking price was going to be at a great point for renovating and creating equity. I asked a realtor I got connected with on BiggerPockets to check comps, get in touch with the seller/listing agent, and get what information they could on the property. They provided me with a list of repairs discovered in an inspecton (unsure why an inspection was done) and tried to dissuade me on the property based on the repairs by making them sound like a way bigger issue than they really were. They also said that the home couldn't be allowed to close in its current condition, so I was waiting for an update to be able to make an offer. Shortly after, the property was contingent before going to market. I did some digging, and found that my realtor either tipped the property off to one of their clients or purchased the property for themself.

Is this common, and how do you avoid this? Obviously I won't be working with this realtor any longer, but it's created some distrust and hesitation to bring any properties I'm interested in to an agent, particularly those that are currently off market.

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Ken M.
Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
6mo
Quote from @Alex Holmstrom:

I found a property in my neighborhood that was off market but in the process of getting ready to be listed as an estate sale, and the asking price was going to be at a great point for renovating and creating equity. I asked a realtor I got connected with on BiggerPockets to check comps, get in touch with the seller/listing agent, and get what information they could on the property. They provided me with a list of repairs discovered in an inspecton (unsure why an inspection was done) and tried to dissuade me on the property based on the repairs by making them sound like a way bigger issue than they really were. They also said that the home couldn't be allowed to close in its current condition, so I was waiting for an update to be able to make an offer. Shortly after, the property was contingent before going to market. I did some digging, and found that my realtor either tipped the property off to one of their clients or purchased the property for themself.

Is this common, and how do you avoid this? Obviously I won't be working with this realtor any longer, but it's created some distrust and hesitation to bring any properties I'm interested in to an agent, particularly those that are currently off market.

There are several "red flags" immediately. Are you  preapproved for financing? Was your  anticipated price lower than the buyer's? Did you have contingencies that the other party didn't have? Was yours a quick "cash offer"? I can think of several more, but you get the idea. 

To get dialed in on these deals, you have to have knowledge, capital and connections. 

 Bottom line, "you don't know what you don't know" and only experience or training get you there. 

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  • Rod HanksBusiness Member
    Insurance Agent · Dallas, TX · Member since 2013 · 743 posts · 462 votes
    6mo

    Yeah… it happens more than people think, especially with off-market stuff. Some agents will protect their own deals or preferred clients first, which is why a lot of investors keep control of the lead and only bring in an agent when they’re ready to write.

    I learned the hard way to go direct to seller or listing contact whenever possible, or at least make it clear upfront you’re the buyer and expect them to represent you—not shop the deal around. Once a deal smells good, move quick and lock it up before too many people touch it.

    I’d move on and tighten your process, not stop working with agents completely—just be selective. Are you mostly trying to source your own off-market deals or rely on agents bringing them?

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  • Janice Carter
    Real Estate Broker · Atlanta · Member since 2024 · 1k+ posts · 605 votes
    6mo

    Alex, you avoid it by controlling the deal. When you find an off-market opportunity, get it under contract before bringing in an agent or work with someone you have built trust with. A good agent should protect your interest, not compete with you. You did the right thing by moving on.

    0Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    6mo
    Quote from @Alex Holmstrom:

    I found a property in my neighborhood that was off market but in the process of getting ready to be listed as an estate sale, and the asking price was going to be at a great point for renovating and creating equity. I asked a realtor I got connected with on BiggerPockets to check comps, get in touch with the seller/listing agent, and get what information they could on the property. They provided me with a list of repairs discovered in an inspecton (unsure why an inspection was done) and tried to dissuade me on the property based on the repairs by making them sound like a way bigger issue than they really were. They also said that the home couldn't be allowed to close in its current condition, so I was waiting for an update to be able to make an offer. Shortly after, the property was contingent before going to market. I did some digging, and found that my realtor either tipped the property off to one of their clients or purchased the property for themself.

    Is this common, and how do you avoid this? Obviously I won't be working with this realtor any longer, but it's created some distrust and hesitation to bring any properties I'm interested in to an agent, particularly those that are currently off market.

    You’re unclear as to whether the Realtor you contacted “tipped the property off to one of their clients” or the Realtor representing the seller.
    If it was the Realtor you contacted had you signed a buyer representation agreement with the Realtor?  How had you ascertained the information?  And more importantly why would you go thru a Realtor with a property YOU found rather than go directly to the seller or the broker representing the seller?  In today’s residential world going direct will essentially save you the broker fee you’d pay on the buyer side, either directly or thru a lower price if the seller isn’t asked to pick up that fee in their sales price. 
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  • Abel CurielBusiness Member
    Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
    6mo
    Quote from @Alex Holmstrom:

    I found a property in my neighborhood that was off market but in the process of getting ready to be listed as an estate sale, and the asking price was going to be at a great point for renovating and creating equity. I asked a realtor I got connected with on BiggerPockets to check comps, get in touch with the seller/listing agent, and get what information they could on the property. They provided me with a list of repairs discovered in an inspecton (unsure why an inspection was done) and tried to dissuade me on the property based on the repairs by making them sound like a way bigger issue than they really were. They also said that the home couldn't be allowed to close in its current condition, so I was waiting for an update to be able to make an offer. Shortly after, the property was contingent before going to market. I did some digging, and found that my realtor either tipped the property off to one of their clients or purchased the property for themself.

    Is this common, and how do you avoid this? Obviously I won't be working with this realtor any longer, but it's created some distrust and hesitation to bring any properties I'm interested in to an agent, particularly those that are currently off market.


    Did you sign an agreement or disclosure of any kind with the agent? 

    If you did, they have a fiduciary responsibility to you, and they violated (if you have proof) some serious ethics codes. If they did, contact their broker or MLS board.

    If you didn't sign anything and they had a signed agreement with another buyer, the broker/MLS board may still be contacted but I'd imagine its tougher to plead your case.

    In the future, I'd recommend signing an agreement stating they'll work in your best interest, or deal directly with the owner/owner's rep until you're ready to bring on an agent.

    That said, if you're relatively new to the process, it's totally understandable why you'd go with an agent early in the deal. 

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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    6mo

    That does seem like a bummer all around. In the future I would go direct with the listing agent unless you have a rock solid agent that you have a buyer agency with. 

    0Reply
  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    6mo
    Quote from @Alex Holmstrom:

    I found a property in my neighborhood that was off market but in the process of getting ready to be listed as an estate sale, and the asking price was going to be at a great point for renovating and creating equity. I asked a realtor I got connected with on BiggerPockets to check comps, get in touch with the seller/listing agent, and get what information they could on the property. They provided me with a list of repairs discovered in an inspecton (unsure why an inspection was done) and tried to dissuade me on the property based on the repairs by making them sound like a way bigger issue than they really were. They also said that the home couldn't be allowed to close in its current condition, so I was waiting for an update to be able to make an offer. Shortly after, the property was contingent before going to market. I did some digging, and found that my realtor either tipped the property off to one of their clients or purchased the property for themself.

    Is this common, and how do you avoid this? Obviously I won't be working with this realtor any longer, but it's created some distrust and hesitation to bring any properties I'm interested in to an agent, particularly those that are currently off market.

    There are several "red flags" immediately. Are you  preapproved for financing? Was your  anticipated price lower than the buyer's? Did you have contingencies that the other party didn't have? Was yours a quick "cash offer"? I can think of several more, but you get the idea. 

    To get dialed in on these deals, you have to have knowledge, capital and connections. 

     Bottom line, "you don't know what you don't know" and only experience or training get you there. 

    3Reply
    • Don KonipolBusiness Member
      Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
      6mo
      Quote from @Ken M.:
      Quote from @Alex Holmstrom:

      I found a property in my neighborhood that was off market but in the process of getting ready to be listed as an estate sale, and the asking price was going to be at a great point for renovating and creating equity. I asked a realtor I got connected with on BiggerPockets to check comps, get in touch with the seller/listing agent, and get what information they could on the property. They provided me with a list of repairs discovered in an inspecton (unsure why an inspection was done) and tried to dissuade me on the property based on the repairs by making them sound like a way bigger issue than they really were. They also said that the home couldn't be allowed to close in its current condition, so I was waiting for an update to be able to make an offer. Shortly after, the property was contingent before going to market. I did some digging, and found that my realtor either tipped the property off to one of their clients or purchased the property for themself.

      Is this common, and how do you avoid this? Obviously I won't be working with this realtor any longer, but it's created some distrust and hesitation to bring any properties I'm interested in to an agent, particularly those that are currently off market.

      There are several "red flags" immediately. Are you  preapproved for financing? Was your  anticipated price lower than the buyer's? Did you have contingencies that the other party didn't have? Was yours a quick "cash offer"? I can think of several more, but you get the idea. 

      To get dialed in on these deals, you have to have knowledge, capital and connections. 

       Bottom line, "you don't know what you don't know" and only experience or training get you there. 

      “To get dialed in on these deals, you have to have knowledge, capital and connections.”
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      0Reply
  • Derek Hollis
    Real Estate Agent · Nashville, TN · Member since 2026 · 12 posts · 9 votes
    6mo

    Agent here, and this one stings because it makes us all look bad. Whoever did this violated their fiduciary duty to you, full stop. Going forward, sign a buyer representation agreement before sharing any lead intel with an agent, and make sure you're working with someone who actually has investor clients of their own and won't see your deal as their deal.

    1Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    6mo

    If it wasn’t listed yet why did you introduce 4-6% in additional costs if you planned to offer what the buyer was going to ask. You could have literally offered 2%bless than their number and you both would have come out ahead.  

    As mentioned your only complaint would be if you planned to offer full ask, you know the other client didn’t also ask the realtor to investigate it, and you both had the same financial situation and contingencies. 

    But next time, if it’s off market you keep it off market and your offer is $10;s of thousands of dollars stronger.  

    0Reply
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