Should I report this agent to the Board of Realtors or?

129 Replies

I'll try to make this short.

Last month, I called an agent who runs a property management company. I offered to buy one of the houses he manages.  Had to explain to him a couple of times what I was trying to do.  Anyway,  he calls the owner and she agrees to sell it to me for the price I offered.  I asked the agent to write up the contract.  He did but he included a 6% commission.  I told him I didn't think he earned 6% for simply making a phone call and writing up a contract.  I refused to sign.  Next day he puts the property on the market with a highest and best at close of business the same day.  I make the same offer but was outbid.  Found out today, the buyer was the agent's father and another agent within the original agent's office represented the father.  

My agent (who knew of this, but wasn't involved) says I should report the original agent.  My PM also says I should report the agent and has almost had to report said agent in the past.  

So should I 

Simply report the agent to the Board of Realtors?

Report the agent and contact the seller to tell her what happened?

Just tell the seller what happened?

Text the original agent to tell him I know he sold the property to his father?

Make an offer to buy the property from his father at the same price I originally offered (JOKING).

Call his mom, who is his broker and tell her I think what her son and husband did was pretty crappy (obviously she knew all about this)?

Do Nothing and let fate take care of this unethical family?

Something else?  

Most property management contracts include a sales commission if the property is sold. Was the agent asking You to pay the commission?  If not, why do you care, the owner had agreed to it.

No one cares if you think he’s making too much money for relatively little work. Sometimes an agent spends hundreds of hours on a deal, many deals/buyers never close, so they need an easy one once in a while to balance it out. 

Im not quite sure I follow.....they sold it to someone for a higher price than you were willing to pay right? The seller knew what your offer was, as they initially agreed to accept it before you balked. The agent brought a buyer willing to pay more, and the seller signed the contract. As long as they disclosed to the seller their family relationship, which you wouldnt know if they did or not...its all on the up and up.

Looks like you're not getting the property.  You didn't agree to the specifics of the sale.  The seller found another buyer.  The identity of the buyer is not the issue. 

6% fee is not unreasonable.  Many agents charge 7%

As long as the agent disclosed the familial relationship they didn't do anything wrong. 

I tried to keep this short.  I figured when I wrote that both my agent and my PM who is also an agent were urging me to report this agent in question, I figured that would be enough to show that he was unethical. 

None of the facts as presented though make it sound unethical. We can only work with the information provided. It sounds more like your agent is upset they arnt getting paid. If your agent really thinks its unethical, they can file an ethics complaint....but if they do so frivolously, they could have an ethics complaint in turn filed against them, and be fined if they lose.

Seriously, so it is my agent that is being unethical?  What about my PM do you think he was being unethical too for wanting to report an unethical agent?  

Originally posted by @Cal C. :

Seriously, so it is my agent that is being unethical?  What about my PM do you think he was being unethical too for wanting to report an unethical agent?  

The information you have provided does not reveal any unethical activities.  What part of it sounds unethical using the information you provided? 

There could be tons of unethical stuff that happened, but our source of information on the entire process is limited to your post, and I dont see it in that limited amount of information.

Originally posted by @Cal C. :

I tried to keep this short.  I figured when I wrote that both my agent and my PM who is also an agent were urging me to report this agent in question, I figured that would be enough to show that he was unethical. 

 So you really didn't want to hear what anyone on BP had to say about the facts as you presented them? 

Seems like you want strangers on the internet to hop on your "report them" bandwagon because "your agent and PM said to report this agent" and totally ignore the facts. 

This could be a crazy idea, but maybe your agent and PM are wrong...

Actually, I didn't want to report them.   If I  did I would have reported them already.  But I wanted to get a sense of what others would do about an unethical agent.  How y'all turned this against my agent and my PM is stunning and knowing the people involved it is even more stunning.  I've known both my agent and my PM to give up significant sums because it was the right thing to do.  They certainly don't deserve to be attacked for pointing out that an unethical agent has been unethical.  

Originally posted by @Cal C. :

You avoided my question.  Did my PM act unethically too for wanting me to report this unethical agent?  

 I wasnt avoiding your question lol. Again nothing sounds unethical to me. It sounds like you want people to tell you what you want to hear, and since you have to deal with your agent and pm face to face, maybe they are telling you what you want to hear, unlike every other reply on the thread, where no one can see in the information youve provided what exactly was unethical.

If your PM thinks there was something unethical, he, like your agent can report that.

Originally posted by @Cal C. :

Actually, I didn't want to report them.   If I  did I would have reported them already.  But I wanted to get a sense of what others would do about an unethical agent.  How y'all turned this against my agent and my PM is stunning and knowing the people involved it is even more stunning.  I've known both my agent and my PM to give up significant sums because it was the right thing to do.  They certainly don't deserve to be attacked for pointing out that an unethical agent has been unethical.  

 Exactly WHAT was unethical? You refused to submit an offer. Someone else bought the property. Explain what was unethical in this transaction. Nobody is being attacked. 

Originally posted by @Russell Brazil :
Originally posted by @Cal C.:

Seriously, so it is my agent that is being unethical?  What about my PM do you think he was being unethical too for wanting to report an unethical agent?  

The information you have provided does not reveal any unethical activities.  What part of it sounds unethical using the information you provided? 

There could be tons of unethical stuff that happened, but our source of information on the entire process is limited to your post, and I dont see it in that limited amount of information.

Cal was this a listed property.. or was this just a property that was not on the market you decided to make an offer on. 

if there is no listing there is no fiduciary did you have a buyers brokers agreement ? NO ?  then no fiduciary.

sounds to me you opened up pandoras box.. the seller says hey lets open it up to the market place gave you a chance at highest and best you refused.. you could have used an escalation clause if you really wanted it. 

dont know about GA  but in our state board of realtors would not handle this.. it would be a complaint to the department of real estate.  ethics are between agents not buyers and agents..   U tried you got out bid you did not want to pay more deal went to someone else.. ??? is that about it. ?

why didn't you try to negotiate a lower commission instead of no commission at all? it seems that was the reason for the hard left in this scenario from the jump. imo, the PM did earn a commission. maybe you think 6% was a stretch so start at 1% or 2% and meet in the middle next time. my coin.

kudos,

Mary

 Yes they can report it, but they had nothing to do with it.   Thus it is up to me to report it or not.  BTW when you mentioned fines, you were clearly implying that my agent was being unethical otherwise there is absolutely no other reason to mention fines. 

Originally posted by @Cal C. :

Actually, I didn't want to report them.   If I  did I would have reported them already.  But I wanted to get a sense of what others would do about an unethical agent.  How y'all turned this against my agent and my PM is stunning and knowing the people involved it is even more stunning.  I've known both my agent and my PM to give up significant sums because it was the right thing to do.  They certainly don't deserve to be attacked for pointing out that an unethical agent has been unethical.  

 I, nor no one else turned this against your agent or pm.  Everyone here simply has stated, none of us see with the information provided, what was unethical. Your agent and pm may be privy to information, you have not provided here.

@Cal C.

Sorry, but as an investors agent, I don’t think this agent acted unethically. In fact, this agent has a fiduciary duty to do right by their client. Seems like said agent got their client the best deal. It’s not like the agent listed to see if they could beat your price, you didn’t sign the contract. Perhaps your agent and pm are wanting to place blame, but it doesn’t appear they have grounds for an ethics violation.

Originally posted by @Mary B. :

why didn't you try to negotiate a lower commission instead of no commission at all? it seems that was the reason for the hard left in this scenario from the jump. imo, the PM did earn a commission. maybe you think 6% was a stretch so start at 1% or 2% and meet in the middle next time. my coin.

kudos,

Mary

 I would have been quite happy for the realtor to get a 3% commission.  It was the 6% commission that I felt he didn't deserve.   It was incredibly short sighted of this agent since I probably would have bought several more from him over the years even he would have been reasonable about the commission.  

Originally posted by @Cal C. :
Originally posted by @Mary B.:

why didn't you try to negotiate a lower commission instead of no commission at all? it seems that was the reason for the hard left in this scenario from the jump. imo, the PM did earn a commission. maybe you think 6% was a stretch so start at 1% or 2% and meet in the middle next time. my coin.

kudos,

Mary

 I would have been quite happy for the realtor to get a 3% commission.  It was the 6% commission that I felt he didn't deserve.   It was incredibly short sighted of this agent since I probably would have bought several more from him over the years even he would have been reasonable about the commission.  

too funny.. your setting someone else comp.. when you have your own criteria for your own business.. and or what you will pay.. its kind of the pot calling the kettle black.. do you go to a closing that a closing agent works on for maybe 30 minutes and they charge 1000 bucks and do you say no I am not going to close unless you cut your fee down since i dont think you deserve it..  NO you dont you can try a different closer .. some maybe discount for volume.. i know i get discount but volume for us is 50 closings a year...

But as its base for sure commish is negotiable and there is no problem doing that. I know I am on the high side with tough to sell properties i would routinely charge 10 to 20% commish.. and if they are fairly low value assets IE under 150k who is going to take the risk and everything to make a few grand thats hardly worth a busy agents time .

So paying 6% commission rather than 3% commission to the agent was in the best interest of the seller?  I didn't sign the contract because I felt the agent was screwing the seller.  

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