Fire my Agent? Agent buys deal instead of closing for client

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Fire my Agent? Agent buys deal instead of closing for client

James G.
Rental Property Investor · Member since 2020 · 32 posts · 35 votes

When I asked about the status of a deal my agent was trying to line up for me, he (to his credit) told me he and his partners just put it under contract and that he would keep looking for a deal for me.

I’m new to rental investing, but not new to buying houses/dealing with agents... and this seems off to me. Understanding that there is always competition, I believe the Agent should have notified me that he and his partners were interested in this deal from the outset.

Thoughts?

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Bruce Lynn
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
5y

I'd get a different agent.  I always tell my clients, I would never buy in front of them.  Now if they don't like it, can't buy it, won't buy it, I might buy it, but I always give them the chance first.   Buying in front of a client that has either alerted you to the property or one you sent them as a potential buy, is a great way to kill that relationship.   I also ask them to tell me pretty quickly if I see a nice deal while we are there looking.  I tell them straight up if they don't want it, I probably have another investor that does.  If they want it, I don't shop it around to other investors, but if you don't and it's a deal, I want some other client to get it.

I guess it kind of depends on where you were in the process, if you have financing together.  Not sure what lining up a deal means exactly.  Had you seen the house?  Had you made an offer?   Do you have your financing in place?   How many other homes have you seen with the agent?  Have you bought other homes with the agent?  

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  • Gail W.
    Investor · IL · Member since 2019 · 151 posts · 135 votes
    5y

    Twice in the past year I have had agents talk me out of looking at a listing. One sold the day it was listed and the other was on a couple of weeks. Both were light cosmetic flips, One of the two was recently listed and resold within a month. From now on if an agent slow walks me looking at a place I will be on the phone with agent after agent until one will show it to me.

    3Reply
  • Allen Williams
    Realtor · Jacksonville, FL · Member since 2019 · 95 posts · 87 votes
    5y

    @James G.

    As an agent I would say make sure to clarify communication and expectations. If the agent has a partner or someone else involved and they find a deal and you are entertaining other deals I see his side. But if you are seeking that next deal and have the cash or preapproval ready and are committed I totally understand and agree with your point. With my out of state investors and locally I let them know what to expect since I am an investor as well. But I will always give my customers the opportunity to act first, but I explain to them that I need a fast response so if they do not want it I can pursue it. I would encourage communication and if the agent gives you a bad response I would find a new one. Hope this helps!

    1Reply
  • Aigo Pyles
    Flipper/Rehabber · Memphis, TN · Member since 2020 · 758 posts · 285 votes
    5y

    I think the problem was failure in communication. 

    1Reply
  • Gio Corpus
    Realtor · New York, NY · Member since 2019 · 23 posts · 18 votes
    5y

    That is pretty shady. Being an agent myself and an investor. If I met up with you understanding that you are investor. I would mention it to begin with. My fiduciary belongs to you. If I bring you a deal I would be black and white. Anyway, I would look for an agent that you like and you can trust.

    1Reply
  • Bryan Flores
    Investor · Charlotte, NC · Member since 2020 · 14 posts · 7 votes
    5y
    There's way too many agents to stick with this one. If he would have messaged you and told you about this before you were waiting on him then I'd understand. I would take it as a foreshadowing. If he can't communicate right when you are looking how much worse will it be when you have a deal in the works.
    1Reply
  • Ronald Starusnak
    Property Manager · Syracuse, NY · Member since 2016 · 601 posts · 384 votes
    5y
    Originally posted by @James G.:

    @Bruce Lynn

    @Dalyn Hazell

    @Inessa Stysis

    I was not far into the process. I have seen a number of properties with this agent so far. Prior to Christmas he told me about this property and that he thinks that he’s convinced the owner to sell. At that point he told me that if I couldn’t buy it that he’d have someone else lined up anyway. He went to the property and took some photos and sent them to me, indicating that after Xmas I could go and see it. This week, I asked him about it and he told me he was meeting them the next day and to give him the time to confirm if they would be selling. I waited, then asked how it went. He then called me to tell me that he and his partners bought it.

    I certainly see a failure in communication. He should have given me the full picture.

    It seems a little unethical but if he felt you were just tire kicking then I can see why he would have done that. Real Estate is a quick moving game, make your intentions known up front to remove all plausible deniability. Switch agents too. 

    1Reply
  • Steve Morris
    Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    5y

    Kinda snaky BS and less-than-open disclosure by the agent, but did you submit an offer?

    In any case, lesson learned about your broker's character.

    1Reply
  • De Rasche
    Real Estate Agent · Near Memphis, Tenn. · Member since 2019 · 88 posts · 34 votes
    5y

    The best deal of my life came about when an agent sold a property out from under me.  I even had a cash offer in that they never presented.  Thought about legal action and instead got educated with good advisors and found a gold mine with that unspent money.  Find people you can trust and communicate well with to find a better deal and replace this one.

    20 yeaars later the deal I wanted was worth about the same $ and the replacement property worth 10 fold.  

    3Reply
  • Ola Dantis
    Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    5y

    @James G. 

    This is not the agent for you, James. 

    Fire him and find an agent who has no interest in buying investment properties. 

    There is already enough competition in the marketplace and adding one more person just makes things unnecessarily harder for yourself. 

    3Reply
  • Jerie Rollins
    Paso Robles, CA · Member since 2020 · 7 posts · 5 votes
    5y

    @James G. Personally, I would expect more transparency from anyone on my team. The length and strength of my relationship with the realtor would contribute to my decision to either keep or switch this person on my team.

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Russell Brazil:

    It sounds like he told you up front if you didnt want to buy it, hed have someone else buy it, then you waited. If you wanted it, you should have communicated, I want to see it when you go, or I want to make an offer on it....not have waited 2 weeks.  If I have a client who has been silent for a couple weeks on a property, Ive likely been shopping that property around to try to get it sold, or buying it myself too.

    In todays competitive market if its a deal 2weeks is an eternity.. to get deals yo need to offer within an hour or two of being presented with it. you should already know what a deal is and is not.. have your cash lined up your finance letter ready to go.. and make the offers subject to normal due diligence.. right now today.. getting in contract is job one..  not waiting around for when things are convenient..

    this is JUST general advice I am sure there is more to the story like Paul Harvey used to say..  But thats my opinion as you move forward.. ready set fire.. if inspections and title come back clean you close if not you either terminate or retrade.. 

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    6Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    5y

    I see no issue here. If you wanted to buy it you should have bought it. What have you been doing for the last two weeks?

    4Reply
  • David Song
    Real Estate Broker · Redwood City, CA · Member since 2014 · 679 posts · 888 votes
    5y

    Wait 2 weeks? You are telling everyone you do not want it. 

    3Reply
  • Stanley Huertas
    Member since 2019 · 12 posts · 6 votes
    5y

    @James G. Fire agent your not playing with 100$ your playing with 100,000$ or more No time for mistake even if it’s communication or error on someone side sounds real shady to me. There no room for mistakes in investing especially if your a new investor. there 100 other agents that are humble and would be honest with you if they want the property themselves before hand yes they exist.

    1Reply
  • James G.
    OP
    Rental Property Investor · Member since 2020 · 32 posts · 35 votes
    5y

    @James Wise

    Only waited because he said to. Basically I think the agent kept me at a distance. Since he found it, I can see that he has a ‘right’ to it. I don’t think he should have kept his interest in it from me. Issue is transparency. But in the end I take that I do need to be more proactive in finding my own deals, and in taking bolder action sooner - regardless of who my agent is.

    Thanks for the comment.

    0Reply
  • Jonathan R McLaughlin
    Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
    5y

    @James G. Well there are always tons of complaints on this board about realtors who don’t understand investing...so at least this guy knows how to find deals :)

    3Reply
  • James G.
    OP
    Rental Property Investor · Member since 2020 · 32 posts · 35 votes
    5y

    @Stanley Huertas

    Thanks everyone!

    You’ve all given me a lot to think about and some solid advice for moving forward. I appreciate the various positions and it’s helpful to see arguments from the various perspectives and experiences.

    Cheers!

    James

    0Reply
  • James G.
    OP
    Rental Property Investor · Member since 2020 · 32 posts · 35 votes
    5y

    @Jonathan R McLaughlin

    Haha true enough!!! I’m sure I can learn a lot!

    0Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    5y

    @James G. If you are a serious client with this Agent and this happened, then I will suggest you look for another Investor-Agent. 

    Also, clearly communicate your timeline and your goals to your new agent in your first extensive communication.

    As an Investor-Agent, we have a FIDUCIARY DUTIES to clients. Unfortunately, not all agents are living up to this highest professional ethics.

     It always CLIENT-FIRST for me and I will NEVER put in an offer before my clients.... It's against professional ethics. 
    I may submit an offer after the client confirmed they are no longer interested in the property.

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  • Cory WallacePro Member
    Rental Property Investor · Norfolk, VA · Member since 2020 · 53 posts · 38 votes
    5y

    @James G. That does not sound ethical. That would not sit well with me and I would look for a new agent.

    1Reply
  • Brian Ploszay
    Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
    5y

    Never compete with your clients.  If you were further down the line with him, I say it is a breach of agent duties.  You obviously feel negative about this;  you have posted on B.P.    Find another agent.

    1Reply
  • Shiva Bhaskar
    Investor · Los Angeles, CA · Member since 2017 · 523 posts · 476 votes
    5y

    This is not the worst thing I've heard of an agent doing, BUT I'll say this:

    1. You're already having trust issues with the guy. That's not a good start to a business relationship. Even if he does great from here on out, you're going to have doubts. I'd find a new agent. Just try to keep the split cordial if you can, so that if he's the listing agent on a deal you get into later, he doesn't kill your offer because of bad blood. 

    2. Have this conversation openly with your next agent. If they're an investor, try to figure out some ground rules. Nothing wrong with a realtor going after a deal you passed on, or if you waited a long while before making an offer. However, clear communication is the key. 

    1Reply
  • Louie Joles
    Rental Property Investor · Baton Rouge, LA · Member since 2020 · 11 posts · 2 votes
    5y

    @James G.

    Punch him in the mouth steal his wife and kick his dog.

    I don’t go for snakes.

    0Reply
  • Chinyere Orie
    Real Estate Agent · Baltimore Maryland · Member since 2019 · 98 posts · 74 votes
    5y

    I think he should have told you up front, before he bought it, that he was interested and would purchase it if you couldn't.  Based on the way you described it, it may be an ethical violation.  But at the very least, it sounds like you don't really trust that agent anymore. There are plenty of agents who are also knowledgable investors that you can work with. I would probably find another agent to work with.

    1Reply
  • Betty Klein
    Investor · Reno, NV · Member since 2017 · 66 posts · 39 votes
    5y

    if you signed a contract with him he broke it. Report him to realtors board for unproffessional behaviour.

    0Reply
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