Ethics problem ... What to Do?

Question

I had an offer in on an REO property.  A few days later, I was informed there were multiple offers and the final date to put a final offer in would be 9/24.

Turns out my offer wasnt the highest.   However, my agent and I found out a couple days ago that the highest offer was presented by the seller agent's husband (who was a realtor acting on behalf of another client).  And, that offer was presented to the bank several days after the final offer date at a value <1% more than my offer was for.

My agent an I are going to file an ethics complaint against both agents, but is there any way to stop the [unethical] sale to the buyer that is currently under contract?

Frank Adams · Answer

Move on! The seller (bank) has an obligation to get the highest price, the agent has an obligation to get them the highest price. All they have to say is; "after the deadline the seller stated they would be interested in looking at any higher offers that might come in, we brought one in". No ethics problem there, AFAIK.

all cash

N/A N/A · Answer

In order to file an ethics complaint against a Realtor, you must first determine which of the National Association of Realtors Code of Ethics have been violated.  From what I've read in your post, there have been no violations.

Banks seek to get the highest possible price just like any homeowner.  Agents for banks are charged with getting the highest possible price just like agents for any other homeowner.

Not to take away from the incredible importance of a good buyer's agent, a simple reality that you'll have to get use to is that buyer agents are at a disadvantage when it comes to submitting offers; but this isn't a characteristic of just REO, it's all of real estate.  The listing agent has the privelege of seeing your offer, but you can't see theirs, that's just the way it is.

Granted, this presents an ethical delima that REO asset managers are well aware of, but the fact is, it can rarely be proven that the listing agent did anything unethical.  In the end, the listing agent got their client a little more money - that's their job.  As far as offer deadlines, these are merely part of an overall marketing strategy, and are not "official" or set in stone in any way (except HUD, VA and some auction platforms to some degree).  A homeowner (bank) can pretty much do as they please regarding such matters.

One thing...
If the accepted offer was lower than yours, then you could possibly show an unethical act - as the listing agent may have not presented your offer, a violation of (Standards of Practice 1-7).  This would not only be an ethics violation, it would be a violation of state law, as it could be proven that the agent wasn't acting in the best interest of their client. 
This of course wasn't your situation.

I am sorry that you lost out, I know how difficult it can be to lose the place that you felt would be just perfect.  However, take comfort in knowing that in the current market, there are going to be a lot of perfect places available for your choosing.

To that end, All Cash said it best.  Move On.

NA NA · Answer

Even if the buyers agent and the sellers agent are the same people (well, husband and wife)?  Clearly, thats an unfair advantage as the buyers agent knew exactly how much to bid for the house for the bank to accept the deal.