I found a property on Craigslist that was a short sale and wasn't on MLS yet. I contacted the listing person who happened to be an agent. He wanted to show the house and represent the buyer and seller. Judging his reviews on various websites and he has little experience (i could be wrong). When I informed him I'd use my own agent who I've known for the better part of 30 years... he took a lesser offer where he got double commission. He makes money and the bank loses money - this is the first time i've experienced it and figured I'd pass the story along.
I try to use the seller's agent 100% of the time. You miss on the deals if you don't
If you used your own agent are you paying your agent or do you expect the listing agent to split their commission. And if it is a deal for you. Why should you care if the listing agent got the double commission?
To me this is fraud on his seller and the agent needs to have his license revoked. He has an absolute duty to the Seller to get the Seller the most money he can. By going with an offer that gets the Seller less and the realtor more he has broken his fiduciary duty. He needs reported to the Real estate licensing commission and to his broker. An attorney would probably be disbarred for this, it the same as stealing from your client.
How do you know even though the other offer was less that the NET wasn't more to the bank??
Banks ( lenders ) just like HUD care about the net to them and not so much the sales price. The buyer could have been all cash etc.
I know nothing about this situation. I am just throwing some things out there. Not on MLS yet is weird on listed residential property as that is usually the first place it is put on.
Did the house sell? I am curious how you know they accepted a lesser offer? Did you submit your offer to the agent? Did the sellers reject it in writing? If what you say is correct I agree with @Jerry W. that is sounds like fraud.
Hey Fellas - sorry for the delay, been out on the Appalachian Trail the last few days. I have a little inside info on the house because I happen know one of the neighbors. I'm also an acquaintance of one guy who was renting a room in the house. (small world right?) The house is a few blocks over in my neighborhood. Some houses I follow on redfin.com to see what I was outbid for or just curiosity. (started doing that when I was outbid on a purchasing a firehouse years ago - lost that due to them removing finance contingency even though I offered more). I don't particularly care if the seller agent gets double commission, but with regards to this situation, I know the agents I work are meticulous and this seller agents made be leary.
What is overlooked here is the failure to put on the MLS. Most MLS's require a new listing be posted on the MLS within 24 hours unless the seller has directed the listing agent to do otherwise in writing. Now I know lenders would not direct the listing agent to not put it on the MLS because they want maximum exposure and that is the purpose of the MLS. And in the MLS's I've belonged to that is a fine plus a letter to the seller about maximum exposure, and the agents failure to inform.
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