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

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  • Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
    6y

    @Jay Hinrichs it’s funny that half the folks in this thread know this was common practice and still occurs to a lesser degree. And the other half are appalled and outraged that the thought would even occur as it is the height off moral inequity.

    Just wait until this later group finds out there is gambling in Casablanca

  • Real Estate Agent · Scottsdale, AZ · Member since 2019 · 448 posts · 320 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.

    I can relate to what you're saying.  You need visibility into a deal to navigate the possible landmines.  Can't get that visibility if the broker is blocking you on account that he or she is trying to double end it.  The last offer I wrote went down like that for me.  Listing broker pretty much shut us out, played all sorts of games, and in the end sold the deal to one of his buyers.  I almost reported him for his extremely unethical and borderline illegal actions.  I chose instead to just never do business with him.

  • Rental Property Investor · Navarre, FL · Member since 2019 · 913 posts · 640 votes
    6y
    Originally posted by @Steve B.:

    @Jay Hinrichs it’s funny that half the folks in this thread know this was common practice and still occurs to a lesser degree. And the other half are appalled and outraged that the thought would even occur as it is the height off moral inequity.

    Just wait until this later group finds out there is gambling in Casablanca

    Wait, there really IS a Casablanca?  

  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    6y

    Let it go.  Until the day comes when you can win a bid using emotions, leave them at the door...actually, just leave them at the sidewalk.  There are many events and decisions that take place that is out of our/your hands.  Wasting time worrying about them, or trying to fix them postmortem, does no good.

    In the future, either figure out a way(s) to work with it, or find a different path to that deal that works out better for that REA.  Solve the problem using what you can control.

  • Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
    6y

    During the foreclosure days, I did exactly the same.  I didn't question the ethics of the listing agents, but suspected that it was in my best interest to operate that way.  I had a real estate license, so I could view properties without representation.  But all contracts were written so listing agents could represent me.  Usually they happily accepted this. 

    Today's foreclosures sometimes operate differently.  If there is use of a portal to make offers, any preferential treatment will not occur.  

  • Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    6y
    Originally posted by @Joe Splitrock:

    All the realtors be like, "what are you talking about, we would never do something like that". 

     Realtors are like bananas - they are all the same, right? Kidding aside...

    Of course it happens! There are at least as many shady agents as there are shady landlords and investors!

    I know, because I have been an agent much longer than an investor. But as a buyers agent it's my job to sniff out the other side and play it accordingly. 

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