Dirty Buying Secret That Works

Dirty Buying Secret That Works

Member since 2019 · 17 posts · 48 votes

I always purchase a listed property from the listing agent and never use an outside agent. During the last run on property 2000-2007 I lost so many properties because of unscrupulous realtors. I mean realtors were ripping sellers off by selling their property to close friends and investors without giving newbies like me a chance.

I would put bids on properties for over the asking price and the listing agents would eventually sell the properties to their own clients at a lower price and collect the 6 percent commission instead of selling it to me at a higher price and receiving a 3% commission.

That made me so mad that now I do not care who my agent is, I will only purchase from the listing agent because I understand greed. Greed does something to realtors and generally cost the unsuspected home owner.

And guess what I have landed just about every property since I started that philosophy.

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Rental Property Investor · Winston Salem, NC · Member since 2019 · 63 posts · 54 votes
6y

@D Turner by law, they have to present every offer to a homeowner, so im not quiet sure thats the case

See this reply in the discussion

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  • Rental Property Investor · Winston Salem, NC · Member since 2019 · 63 posts · 54 votes
    6y

    @D Turner by law, they have to present every offer to a homeowner, so im not quiet sure thats the case

  • Member since 2019 · 8 posts · 7 votes
    6y
    I know where I am trying to buy a house though there is an agent that will tell "their" client the outside bids so that their client can win the better offer and be the dual agent. Don't like it, prove it.  Totally understand unethical but how do you change it and prove it.
  • Rental Property Investor · Hawthorne, CA · Member since 2018 · 655 posts · 900 votes
    6y

    @Brandon Cooper

    I think that is the point of his post. That greed supersedes or clouds agents judgements which allows them to close these deals for him.

  • Rental Property Investor · Winston Salem, NC · Member since 2019 · 63 posts · 54 votes
    6y

    @Damaso Bautista but if u could prove that the homeowner never recieved your offer, you could sue said agent. Itd be a long shot but not imposssible

  • Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
    6y

    This was rampant during the down years, 2009 - 2013. Our strategy was to make friends with the listing agents. Back then they were ripping off the banks, most of the good deals were foreclosures and then short sales, so no one minded as much. 

    Proving the homeowner never saw an offer would be very difficult and take a long time. By the time a lawsuit got anywhere the house would be long since sold. I guess the only reason to sue an agent for this is if you're angry enough and want to get revenge, but suing to get houses is a losing strategy. 

  • Rental Property Investor · oakville, ontario · Member since 2019 · 25 posts · 21 votes
    6y

    I 've purchased every single family home (except my first) and every single rental property using the sellers agent or just private sale.Over 15 years of RE investing i definitely see the value in it. I would not state all agents would do these immoral and unethical things, but how would one know one from the other? Regardless, there is value in leveraging the double commissioned realtor.

  • Member since 2019 · 17 posts · 48 votes
    6y

    @D Turner

    Correction, "greed does something to some people"

    Just my experience.

  • Investor · Charlotte, NC · Member since 2018 · 10 posts · 15 votes
    6y

    I suspect some of this does happen.

    I was looking at a really messed up property on foreclosure sale - black mold everywhere. But I still had to look and evaluate. The listing agent went out of the way to discourage me from even visiting the property. I bet she did this with every prospective buyer. I ended not going for it, because I would do it the right way - get the professionals to remove black mold and certify as such, and the quotes left little room for profit.

    Lo and behold, the property soon went under contract, rehabbed and sold in 59 days of closing. Selling agent - same last name as listing agent and in same firm. Coincidence, I think not!

  • Rental Property Investor · Hawthorne, CA · Member since 2018 · 655 posts · 900 votes
    6y

    @D Turner

    I understand what your saying!!

  • Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
    6y

    Sometimes the listing agent will present the offers, they just downplay the offer they do not want you to take--person may not qualify, person seemed to have lots of questions, first time buyer, might ask for lots of things after the inspection, etc.  Then they praise the offer they are related to.  I have had this happen to me more than once.

  • Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    6y

    While I am sure this might happen, sellers dont have to accept any offer and many times the offer that is accepted has what the seller wants - for example a fast close, short contingency period etc. lots of times its not about being top bid, but the ability to close. 

    That said, i do think real estate is a prime candidate for disruption as the 5-6% commission system is really lame. Sometimes that might be appropriate, but in markets where a house sells in an hour ? No  

  • Rental Property Investor · Clearwater & Daytona Beach, FL · Member since 2019 · 194 posts · 197 votes
    6y

    I have purchased most of my property from the listing agent for this very reason. It may be unethical for them, but it is what it is. I want the best deal possible.

  • Riverside, CA · Member since 2017 · 412 posts · 296 votes
    6y
    Originally posted by @D Turner:

    I always purchase a listed property from the listing agent and never use an outside agent. During the last run on property 2000-2007 I lost so many properties because of unscrupulous realtors. I mean realtors were ripping sellers off by selling their property to close friends and investors without giving newbies like me a chance.

    I would put bids on properties for over the asking price and the listing agents would eventually sell the properties to their own clients at a lower price and collect the 6 percent commission instead of selling it to me at a higher price and receiving a 3% commission.

    That made me so mad that now I do not care who my agent is, I will only purchase from the listing agent because I understand greed. Greed does something to realtors and generally cost the unsuspected home owner.

    And guess what I have landed just about every property since I started that philosophy.

    Oftentimes I skip the listing agent and send my offer to the seller directly. The seller will either give the offer to their agent who calls me (the agent is oftentimes upset of course, but so what) or the seller will call me to work out a deal. The agent still gets paid, but we actually do business rather than the offer winding up in the trash bin. Always remember this, 20% of the agents do 80% of the business, the rest sell one or two properties a year. You have to go around the 80% but you always enjoy working with the 20%.

    I had an early on experience where an agent didn't know how to present my offer (which was a creative financing offer) to the seller and later when I contacted the seller to do a follow up, they had never gotten the offer. I learned something that day.

  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    6y

    @D Turner

    Based on the posts here the behavior of many agents is extremely disappointing.

    Private Mortgage Financing Partners, LLC
  • Investor · Arlington, TX · Member since 2014 · 114 posts · 92 votes
    6y

    @D Turner

    Playing to an agent's greed feels wrong, and it probably is, but it gets results so everyone else is willing to turn away. Inventory needs to be moved otherwise no one gets paid.

    It reminds me of when you're selling a house, and for whatever reason, it sits. You could drop the price 5-10k, and maybe you'll get a few bites, or you can raise the commission one percent, and watch them hustle for a bigger paycheck, saving YOU time and money. Incentives are effective.

  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y

    Where I am they changed the rules and you cannot have the same agent representing the seller and the buyer.  I haven't bought a place since those rules, but I am sure there are some where they use to agents within the same company to get around that rule.

  • Rental Property Investor · Amityville, NY · Member since 2018 · 351 posts · 441 votes
    6y

    Kind of bitter sweet to see this post. Sucks that a lot of agents are like this, feels better to know I'm not the only one dealing with this.

    I have dealt with this A LOT this last 9 months or so. My GF is acring as buyers agent and we have lost many properties because the listing agent(s) have handled offers and showings in a way were they get both sides of the commission every time.

    I say everytime because you can look back and check their track record. You can see that every house they have sold in the past they have been on both sides.

    We have a listing agent around here for some no name brokerage (with terrible reviews) and they won't even show us a property. You call the office and the listing agent never gets back to you. Repeated calls on multiple properties and never once can we get a call back.

    'We are very interested in the property, we can close quick and in cash at the price your asking please get back to us" and still can not get a returned call to see the property.

    It took me a lil while to realize what is happening and what I have to do To change the result. Unfortunately for the GF but were not getting anywhere doing it the old way.

  • Real Estate Agent · Houston, TX · Member since 2019 · 1 post · 4 votes
    6y

    @D Turner

    A few months before I became a real estate agent My wife an I were on the market to buy our own house. I did not have an agent representing us at the time so we went directly to the listing agent. When we requested to see the property the agent said that if we’re not going to be putting an offer at full asking he didn’t want to waste his time. We decided to get an agent to represent us and we didn’t have to deal with that kind of behavior any more. Our agent was very helpful, ethical and represented us to the full extent of his capacity. Now I do the same for my clients I keep their I interested and trust as my priority and give them the respect they deserve.

    Not every agent behaves the same. There are great agents out there.

    Later I found out that house we were interested sold for $60k below asking price. And I guess that agent lost some of his time... Lol!

  • Real Estate Broker · Panama City Beach · Member since 2019 · 47 posts · 29 votes
    6y

    I am not naive to think that this doesn't happen, however, if an agent is a member of the National Association of Realtors, this behavior is a clear violation of the code of ethics and there are simpler remedies that sueing. A consumer can file a complaint with the local realtor association. The agent if found guilty of violating the code of ethics, could be fined, sanctioned and possibly lose their membership and/or license if referred to the state licensing board.  While the consumer would not receive compensation from this process, the agent behaving badly would potentially be removed or hopefully mend their ways.  

    I hate it @D Turner that your initial experience has not been positive. Please note that only REALTORS® are required to adhere to the NAR code of ethics, and licensed agents that are not affiliated with NAR do not. Unfortunately these behaviors by some can spoil the reputation of the industry, but not all Realtors are greedy or behave like this.

  • Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    6y

    @D Turner

    We should add that not all agents are Realtors. For example, commercial agents don’t have to be Realtors. That’s pretty much anything that is not a 1-4 family residential property. Commercial agents specifically don’t join the National Association of Realtors so they don’t have to “play by the rules.” I’ve heard even some residential agents aren’t Realtors as well, although I’m not sure how they pull that off

  • Stephen KeigheryBusiness Member
    Rental Property Investor · New Orleans, LA · Member since 2018 · 717 posts · 555 votes
    6y

    If you really want to get the best deals and be in control of the process you should go direct to seller. It will take some marketing expense and effort to get in front of those people but it's worth it.

    Home Buyer Louisiana4.855 Reviews
  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    6y

    Realtors are no different than waiters, teachers or cops, etc. They're humans, some are good at their jobs, some not so much. One might be a good match for you, but not for someone else. 

    I can tell you that I've landed MANY deals for my clients that they had no chance of landing on their own. 

    Also- when an agent is double ending a deal, as you suggest being the best way to get a deal; you might actually get the property, but there is no way they can property represent you in that deal- no one can truly double end a deal and do right by both participants. 

  • Norfolk, VA · Member since 2019 · 8 posts · 4 votes
    6y

    @Mike S. How do you get the number to directly contact the seller?

  • Riverside, CA · Member since 2017 · 412 posts · 296 votes
    6y
    Originally posted by @Timothy Smith:

    @Mike S. How do you get the number to directly contact the seller?

     I mail then a letter with my offer enclosed. If you call them they simply say to talk to their agent before you have a chance to explain your offer.

  • Rental Property Investor · Corvallis, OR · Member since 2018 · 840 posts · 1k+ votes
    6y

    @D Turner technically, they have a conflict of interest and have to really represent the seller, however I TOTALLY get your point and have said the same thing many times. IF you are doing this, that means you have to always find the deals and really understand how to protect yourself in the deal. Dual agency is not realistic, but I get your post.

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