How to report a Shady Realtor

How to report a Shady Realtor

Real Estate Investor · Coconut Creek, FL · Member since 2013 · 97 posts · 35 votes

For the past few months, I have been looking at some multi-units. I was interested in some but all the properties I was very interested in was listed by one particular shady realtor. I called the realtor to view the property and he suggested that it is for cash buyers only. I advise him this is not disclose in the ad, he goes into a long dialogue telling me he has many offers and wants cash buyers. Six months later properties are still on the market and all his ads are the same. I had several people call him and he does the same thing. I see him using the Bait and Switch tactic. What upsets me about this realtor is, he refuses to show me the property because I am not a cash buyer, the sad thing is I wonder if the seller knows he doing this. I just told him, if he does not update the ad in a week, I will report him. Its bad enough he is not selling the property and refuse to show me the property, but also lieing to get a higher return. I don't mind a realtor making commision but this is wrong. I am newbie and I want stand from shady antics from a realtor. So my questions is have you dealt with this and how do you report a realtor doing shady business? I am in Florida. Its not right to be treated this way for greed.

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Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
13y

First, get your own Realtor (preferably from another firm) to represent YOU. The listing agent represents the seller. It could be possible that the seller has instructed the listing agent to only show the property to cash buyers. If so, that is perfectly legit. If you still think that the agent is doing something shady, you could go speak to his broker. The next step after that would be the local board of Realtors (assuming that the agent is a Realtor). Another option is your state's Real Estate Commission.

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  • Virtual Assistant · Austin, TX · Member since 2012 · 51 posts · 2 votes
    13y

    Definitely a shady one. You should report the realtor ahead and don't just wait for a week before taking any further action.

    Try to go to your department of real estate and see if you can get information of who owns the property [if you have the address information]

    If not, ask them if the agent is licensed or not. Better action is to find a better one that you are sure of. These kind of rogue real estate agents are really only after the money.

  • Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
    13y

    First, get your own Realtor (preferably from another firm) to represent YOU. The listing agent represents the seller. It could be possible that the seller has instructed the listing agent to only show the property to cash buyers. If so, that is perfectly legit. If you still think that the agent is doing something shady, you could go speak to his broker. The next step after that would be the local board of Realtors (assuming that the agent is a Realtor). Another option is your state's Real Estate Commission.

  • Karen MargraveBusiness Member
    Moderator
    Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
    13y

    Call or go online to the Dept of Real Estate in Florida and find out what the process is. If the agent belongs to a local MLS, you can call them and ask what it takes to file a complaint. If the property is listed set up an appointment to go see it (with a different agent). When you make an offer, ask your agent to go with the listing agent to present it (that way you know it's being presented and what the sellers actual comments are etc.)

  • Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
    13y

    Why don't you look up the owners information through the tax information and contact him directly. Depending on the listing agreement you might still have to use the shady realtor. On the other hand, if he really is shady. This would allow you to get ahead of the competition by actually being able to see the property and close the deal.

  • Real Estate Agent · Milwaukee County, WI · Member since 2009 · 3k+ posts · 525 votes
    13y

    I totally agree with suggestions above
    " locate a different agent "

  • Real Estate Investor · Coconut Creek, FL · Member since 2013 · 97 posts · 35 votes
    13y

    My issue if this is for Cash Only buyers, this need to be disclose in the advertisements. Most listings from other realtors have this disclosure on the ad. Even if I have my own realtor, he will not show the property, he refuse to. I was going to contact the sellers directly, because I really don't think they know he is doing this.

  • Real Estate Investor · Coconut Creek, FL · Member since 2013 · 97 posts · 35 votes
    13y

    Also he doesn't picks up his phone, he is very selective, he stop picking up my phone calls. I have to call from different numbers. It's a bit ridiculous. He has about seven multi-unit properties listed. I will go to the procedures to report him, because this is the kind of things that discourages a newbie, trying to get into real estate.

  • Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
    13y

    Has he shown you the property yet? I have never been asked what kind of buyer I am ? My financing has never matter when I am looking for a property. How does he know you are not a cash buyer?

  • Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
    13y

    You really need to be working with a buyer's agent. Especially since you are a newbie. No cost to you, so why wouldn't you do that?

  • Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    13y

    Maybe I'm missing something, but where does this requirement come from:

    As far as I can tell, your only real complaint is that his comment on the MLS don't say "cash buyers only." That doesn't seem very shady to me, because he told you that when you call. Whether he's doing right by his seller or not isn't really your problem. If you can't pay cash, you're not going to be able to make an offer on this property. Whether its because the seller said "cash only" or because the agents knows a financed offer will fall through or just because he thinks he can get a cash buyer and have less hassles doesn't really matter. I'm just missing why you think anything shady is happening. Not to your liking, perhaps. Shady? I don't see it.

  • Lender · Long Beach, CA · Member since 2013 · 496 posts · 296 votes
    13y

    What exactly has he done wrong? Is it the law in Florida that terms must be disclosed in the ad? What does the listing say? For all you know, he may doing what the owner wants him to do.

    I'm not saying he is a great agent. There are plenty of bad ones. But unless he has done something illegal or against the state agency guidelines, a complain will go nowhere.

    Write an offer, contingent on inspection and visual inspection. He will have to present that to his seller.

  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    13y

    Hi Jordan,

    Are you actually trying to buy this property with financing, get 100% owner financing, or trying to just wholesale or assign the property for a fee??

    Point number one is that the agent might not even be a REALTOR. That is a designation for NAR (national association of REALTORS) where they agree to abide by ETHICS code etc. Has nothing to do with selling real estate or being licensed. The real estate commissions care nothing about third party companies such as MLS or NAR etc.

    Point number two is this person an agent at all?? Check on your states commission website as generally there is an agent search function to look up the name. They might just be working and employed by this company.

    Point number three is that state real estate commissions do not want to waste time on complaints. This is why in many states they will make you attest under oath and get notarized the statement you are making before they will even look at it. Commissions resources and their investigators work on a very limited budget and only want to allocate time to the most serious cases.

    It's kind of like with police in that if you call saying the neighbors dog's is barking too much versus them getting a robbery call they could care less about the dog call.

    Sellers use brokers and agents to weed through buyers to find the ones the seller is searching for. If the seller has instructed cash offers then that is not the broker or agents fault. We are not there for your discussions with this broker/agent/person so it's not possible to know exactly what is going on.

    I can tell you that sellers who have money value their time. They do not want to be contacted with a bunch of off the wall type situations. If you are convinced this person is not relaying info to the seller than mail out a letter etc. to the seller expressing interest. I find from my commercial listings that a small percentage of buyers have the capacity to do a deal.

  • David NilesBusiness Member
    Property Manager · DeLand FL · Member since 2012 · 860 posts · 243 votes
    13y

    Have to agree with Jon Holdman completely, from what you describe, I dont see the shady part. What reason would he have to not sell you the property? Being an agent he only gets paid when it sells so its in his best interest to sell it quickly.
    Many properties are cash only NOT due to the sellers demands but because they have certain issues that will not allow them to qualify for traditional financing.
    If you dont qualify as a cash buyer, I wouldnt waste my time showing you something you cant buy either.
    I have come across "shady" agents before but those are always the "pocket" style listings or reos that are impossible to get into and then sell almost instantly and more then likely to that agents buyers or friends.
    While he should have his finance or private remarks options in the ML listed as "CASH ONLY" just makes him more incompetent vs shady IMO.

  • Residential Real Estate Agent · Costa Mesa, CA · Member since 2008 · 1k+ posts · 380 votes
    13y

    Not shady. Just efficient. I'd do the same thing, except I'd probably try to get price reductions on the stale listings.

  • Real Estate Investor · Coconut Creek, FL · Member since 2013 · 97 posts · 35 votes
    13y

    I say its shady, because he refuse to show the property. Its false advertisement. If I am a ready buyer and have 20 percent down, why cant I see the property and make an offer. My issue with this tactic is he needs to be clear on the advertisement he posts that it is strictly for cash buyers only, because I am under the assumption I can make an offer. I am going to finance through my lender. Why does it matter? This is the kind of thing that steer people away from real estate, I don't care he is in for a profit, we all are here to make a profit in the long run. I would like to see the property and probably make an offer. I have realtor, and he gives her the run around as well. All his properties has been sitting on the market for 6 months?! Yet he tell me he has several cash buyers wanting these properties, well if that is the case, why hasnt any of the properties sell? The market is picking up, so I know he is not telling the truth. How efficient is that? When there is a ready buyer? Is this in the best interest of the seller? I don't think the seller knows this. He needs to change the ad if he wants to attract cash buyers, simply as that. Everytime you call, his first question are you a cash buyer? I wouldn't be calling if he disclose this information. I have seen ads and this has been disclose that they only are accepting cash buying offers. I will be reporting him.

  • Real Estate Investor · Coconut Creek, FL · Member since 2013 · 97 posts · 35 votes
    13y

    What has he done wrong? Should I go in detail. I look it has a Bait and Switch tactic, and yes that is illegal. There are a lot of things the seller may ask you to do concerning their property, but it may be unethical to do so. So you shouldn't follow everything the seller say, it can cost you your license if you care enough. The seller can say don't sell this property to a family or pregnant women,or and elderly couple, blacks, and Hispanics. Should a Realtor follow those demands just because a seller suggested this, if this is found out, he can get in big trouble. This happens all the time and I am not going for it! I need legitimate reasons why I can't see the property, not solely because I am not a cash buyer. If that is the case I need it to be disclose in his advertisements.

  • Real Estate Investor · Coconut Creek, FL · Member since 2013 · 97 posts · 35 votes
    13y

    I will contact the seller

  • Investor · Hyattsville, MD · Member since 2012 · 822 posts · 441 votes
    13y
    Originally posted by Jordan Lives:
    I say its shady, because he refuse to show the property. Its false advertisement. If I am a ready buyer and have 20 percent down, why cant I see the property and make an offer. My issue with this tactic is he needs to be clear on the advertisement he posts that it is strictly for cash buyers only, because I am under the assumption I can make an offer. I am going to finance through my lender. Why does it matter? This is the kind of thing that steer people away from real estate, I don't care he is in for a profit, we all are here to make a profit in the long run. I would like to see the property and probably make an offer. I have realtor, and he gives her the run around as well. All his properties has been sitting on the market for 6 months?! Yet he tell me he has several cash buyers wanting these properties, well if that is the case, why hasnt any of the properties sell? The market is picking up, so I know he is not telling the truth. How efficient is that? When there is a ready buyer? Is this in the best interest of the seller? I don't think the seller knows this. He needs to change the ad if he wants to attract cash buyers, simply as that. Everytime you call, his first question are you a cash buyer? I wouldn't be calling if he disclose this information. I have seen ads and this has been disclose that they only are accepting cash buying offers. I will be reporting him.

    You will quickly learn that MLS listing descriptions quality vary considerably and that some are better than others. I LOVE THE ALL CAPS ONES ESPECIALLY:) However, a ready buyer with 20% down will never be able to finance a house with a known issue that disqualifies the property from any loan. I am assuming that he knows the specific issue that would make bank financing impossible/difficult on that and many other non-retail properties he is advertising. Lets say this issue hypothetically is mold in the basement. As a realtor, he knows a bank will reject financing, but he is also not going to put this on MLS and scare away cash buyers too. He also wont volunteer this information to you either over the phone. This is likely why he is only requesting cash offers. You can make an offer today if you wanted to sight unseen; there is nothing stopping you. But he's trying to save you and him the time of having to automatically reject it because its not a cash deal. I suggest you let this minor issue go and spend energy on finding more valuable deals, since reporting realtors for questionable violations is not going to make you any money unfortunately... don't get stuck in a rut and keep your patience and be ready to move on when a deal doesn't look like its going to pan out. good luck with your search.

    FYI bait and switch is trying to advertise one item, while ultimately trying to sell another item. He is still selling you the same item, only he is requiring cash for it. Just because that requirement is not on his poorly worded MLS description, doesn't mean he isn't allowed to enforce it... its irritating, but not illegal/ unethical

  • Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
    13y
    Originally posted by Jordan Lives:
    I look it has a Bait and Switch tactic, and yes that is illegal.

    Bait and switch refers to him advertising something that doesn't exist and then saying " I have this instead"which is at a much higher rate. So this is definitely not bait and switch. He does have those assets for sale for those terms, but it must be a cash sale this is completely legal.

    Originally posted by Jordan Lives:
    I need legitimate reasons why I can't see the property, not solely because I am not a cash buyer. If that is the case I need it to be disclose in his advertisements.

    That is a legitimate reason. You do understand the realtor doesn't HAVE to let you see the property.

    A gas station advertises gas for sale and you pull in and the attendant says we are only taking cash. So you can say "well you should have a sign out front that says that". While that might be the case for courtesy there is not a requirement to do so.

    I have rentals and people ask me all the time if I accept section 8. So should I be required to post "No section 8" in my add, by not doing so am I falsely advertising? The answer is no, and I am allowed to prohibit section 8.

  • David NilesBusiness Member
    Property Manager · DeLand FL · Member since 2012 · 860 posts · 243 votes
    13y

    So you got your own agent and he refused to set up a showing for the agent also? Did he ask your agent if you were " a family or pregnant women,or and elderly couple, blacks, and Hispanics" as you referenced?
    I would venture a pretty solid NO to that because he wouldnt be licensed for a second longer if he did.
    More then likely that conversation went
    " Is your client a cash buyer with proof of funds?"
    "No?"
    "Sorry we are only showing to qualified cash buyers."

    There could be more going on, but from the information you have given, and years of experience, I see incompetent vs shady.

  • Real Estate Investor · Coconut Creek, FL · Member since 2013 · 97 posts · 35 votes
    13y

    Jeff Bridges I will move on and thanks for the advice, I will focus on another property, it is Bait and Switch because he did try to offer me another property after I suggested I was not a cash buyer. He also wanted to represent me and then ask me if I wanted to list a property. This has been going on for months. If I took the time to tell you all that has been going on with this Realtor, you all will change your lingo. But I will take it as lesson learn and move from this deal that is not worth the frustration and the aggravation.

  • Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    13y

    There are certain categories that are covered by the Fair Housing Act. Refusing to sell because of one of these would be illegal. Saying cash buyers only is not one of the covered categories. There may be an issue that will prevent you from getting a loan on this property, even if you're fully qualified. But it doesn't matter. What he is doing is not illegal.

    MLS descriptions are very short and NEVER tell the whole story. NEVER assume they do.

    You really need to get your own buyers agent. This will save you a lot of frustration. And it won't cost a penny.

  • Investor · ST. Augustine, FL · Member since 2013 · 92 posts · 31 votes
    13y

    I don't see where this agent is "Shady" or "incompetent". He has a bunch of multi family home listings. Just because you don't like the terms dictated by the seller does not make him shady.

    I'm sure if he thought there was a possibility of you being able to buy the property he would be all about getting you in there.

    Depending on the MLS, there are certain things you can and cannot say in an advertisement. So maybe cash only is one of those in your area.

    I have a listing that I can't sell because the bank declined to do a short, and then sold the loan to another servicing company. The new servicing company will not talk to me until the seller sends them a 3rd party authorization. My seller has fallen off the face of the earth. I can't remove the listing from the MLS, so when I get calls on it i tell everyone that its a waste of time and I won't show it. Then I find out what they are looking for and try to sell them something else. I don't think I am being shady. Situations arise that are out of our control sometimes.

  • Investor · Hyattsville, MD · Member since 2012 · 822 posts · 441 votes
    13y
    Originally posted by Jordan Lives:
    Jeff Bridges I will move on and thanks for the advice, I will focus on another property, it is Bait and Switch because he did try to offer me another property after I suggested I was not a cash buyer. He also wanted to represent me and then ask me if I wanted to list a property. This has been going on for months. If I took the time to tell you all that has been going on with this Realtor, you all will change your lingo. But I will take it as lesson learn and move from this deal that is not worth the frustration and the aggravation.

    You have good persistence, but you want to make sure you apply it to the right scenarios. I use persistence to make offers, wait a month, then make another offer [to a receptive party]. Spending months dealing with this bozo listing agent was 1 month too many. Use your time like Jon Holdman stated to interview and retain a good buyers agent. Don't just use the first one you interview. Talk to a few and maybe find ones that have experience with investors. Next time let them deal with bozos like that listing agent, while doing so with a professional tone to get the straight shot answers you need to proceed or move on. a lot of people will tell you that 1% of MLS deals are good deals, and even fewer will be available to track down.

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    13y

    Jordan, all cash offers only, does Not need to be in "advertising". The properties are probably not final cable and making a financed offer is a waste of everyone's time. Also, if you're looking at realtor.com or such, only the "public remarks" in a listing are available to the public search sites. Each listing also contains"broker remarks" available only to agents. There is no bait and switch, maybe rudeness and a lack of communication, but nothing illegal.

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