Realtor ethics question

[sb16]

Back in June we found a house in Tanglewilde that we liked and had our agent put an offer in on it. At the time, our realtor told us that the seller's realtor said another offer had already come in on the home, but the seller had rejected that offer and accepted ours. We paid for an inspection and were negotiating based on the results of the inspection (HVAC was too small for the size of the home, not enough air registers, insulation was blown in over the tops of lighting fixtures [fire hazard], foundation concerns, etc...) While our option was pending, our realtor told us that the seller told them that a third offer had come in on the home. The seller was not very agreeable to crediting us for the repairs, and our realtor wasn't really negotiating with them the way we'd hoped - she seemed to be more concerned about staying on their good side than getting us the home. In the end, the seller said they wouldn't agree to the repairs and they were going to take the third offer. Our last communication on the home with our realtor was on June 9th.

I was looking at another home on the same street today, looked at the recent sales on HAR and found the home we'd almost purchased. Was stunned by what I saw: our realtor is listed as the selling broker and the sales date is July 8th. She was apparently representing that other offer.

Are the sales dates on HAR the closing dates? And is it a violation of ethics in Texas for an agent to represent two offers on the same home without disclosing that information to the (potential) buyers?

Thank you.

[diggity]

that's an interesting scenario.

I thing your agent should have definitely disclosed those facts to you.

The reality is, it really wouldn't have mattered who the agent was. If there was another offer on the table and they agreed to forgo inspections, you're going to miss out every time.

It sucks, but when a seller has three offers coming in at once, they have all the leverage.

[TJones]

Hmmmm, so your realtor represented the actual buyer of the property. How did YOU come to find this property in the first place. Was it by the realtor showing you or did you find it on HAR or something and have the realtor get the pass key for the property to show you ?

[jscarbor]

Back in June we found a house in Tanglewilde that we liked and had our agent put an offer in on it. At the time, our realtor told us that the seller's realtor said another offer had already come in on the home, but the seller had rejected that offer and accepted ours. We paid for an inspection and were negotiating based on the results of the inspection (HVAC was too small for the size of the home, not enough air registers, insulation was blown in over the tops of lighting fixtures [fire hazard], foundation concerns, etc...) While our option was pending, our realtor told us that the seller told them that a third offer had come in on the home. The seller was not very agreeable to crediting us for the repairs, and our realtor wasn't really negotiating with them the way we'd hoped - she seemed to be more concerned about staying on their good side than getting us the home. In the end, the seller said they wouldn't agree to the repairs and they were going to take the third offer. Our last communication on the home with our realtor was on June 9th.

I was looking at another home on the same street today, looked at the recent sales on HAR and found the home we'd almost purchased. Was stunned by what I saw: our realtor is listed as the selling broker and the sales date is July 8th. She was apparently representing that other offer.

Are the sales dates on HAR the closing dates? And is it a violation of ethics in Texas for an agent to represent two offers on the same home without disclosing that information to the (potential) buyers?

Thank you.

Try this link and see if it says anything: http://www.texasrealestate.com/web/4/43/index.cfm.

Personally I would have told both potential buyers that they were repping another interested party.

[sb16]

Hmmmm, so your realtor represented the actual buyer of the property. How did YOU come to find this property in the first place. Was it by the realtor showing you or did you find it on HAR or something and have the realtor get the pass key for the property to show you ?

We were meeting the agent a block up the street to view another home, passed the one in question, liked it and asked her to show it to us. She wasn't familiar with the property and couldn't get in touch with the listing agent that evening, but she sorted it out and we went back to see it the following day.

[sb16]

Try this link and see if it says anything: http://www.texasrealestate.com/web/4/43/index.cfm.

Personally I would have told both potential buyers that they were repping another interested party.

I'll check the link. Thank you.

[sb16]

that's an interesting scenario.

I thing your agent should have definitely disclosed those facts to you.

The reality is, it really wouldn't have mattered who the agent was. If there was another offer on the table and they agreed to forgo inspections, you're going to miss out every time.

It sucks, but when a seller has three offers coming in at once, they have all the leverage.

Diggity, we put the offer in on a Friday - our realtor recommended the inspector, but the inspector couldn't do the inspection until Wednesday of the following week. The third offer came in on Friday, a week after we put our offer in. Our option period expired on Sunday. The odds are very slim that someone drove by, saw the house and just happened to call our realtor to represent them. She was obviously actively taking her other clients to it while our option was pending and our negotiations were underway.

In short, there most likely wouldn't have been a third offer coming in at the last minute, if not for our Buyers Agent. That's why I'm very upset.

[jm1fd]

Diggity, we put the offer in on a Friday - our realtor recommended the inspector, but the inspector couldn't do the inspection until Wednesday of the following week. The third offer came in on Friday, a week after we put our offer in. Our option period expired on Sunday. The odds are very slim that someone drove by, saw the house and just happened to call our realtor to represent them. She was obviously actively taking her other clients to it while our option was pending and our negotiations were underway.

In short, there most likely wouldn't have been a third offer coming in at the last minute, if not for our Buyers Agent. That's why I'm very upset.

Call the buyers and ask them how they became aware of the house. If they say fluffy bunny girl suggested it to them, then call a lawyer and go to town. Simple as that.

[AJXterra]

It also may be smart to find your own inspector in the future. Many real estate agents are trustworthy and offer reccomendations b/c they are good inspectors, but you leave yourself vulnerable if you aren't the only party that inspector is working for.

And rest assured that your inspection report miraculously made it into the hands of the other party before they offered.

[jscarbor]

Diggity, we put the offer in on a Friday - our realtor recommended the inspector, but the inspector couldn't do the inspection until Wednesday of the following week. The third offer came in on Friday, a week after we put our offer in. Our option period expired on Sunday. The odds are very slim that someone drove by, saw the house and just happened to call our realtor to represent them. She was obviously actively taking her other clients to it while our option was pending and our negotiations were underway.

In short, there most likely wouldn't have been a third offer coming in at the last minute, if not for our Buyers Agent. That's why I'm very upset.

Have you asked the Realtor what happened?

Also, would you have bought the house if the Seller would not make the "repairs"? No matter how much negotiating a Realtor does with the selling agent it doesn't mean the Seller will comply. This house had 3 offers in 1 week, why negotiate if you are the Seller?: You had the property under contract and controlled the transaction for a small amount of time. Just playing devils advocate, because4 thats what will happen if you try to do anything legally or with TREC. Ethically it smells a little though which is what your initial post is about.

[NenaE]

that's an interesting scenario.

I thing your agent should have definitely disclosed those facts to you.

The reality is, it really wouldn't have mattered who the agent was. If there was another offer on the table and they agreed to forgo inspections, you're going to miss out every time.

It sucks, but when a seller has three offers coming in at once, they have all the leverage.

Why would anyone forgo an inspection? Sounds fishy to me...that's just not smart on the part of the potential buyer. No telling whay you would get yourself into. Unless you have unlimited funds. Sometimes you have to check your emotions & look at the bones of the home, or the inspector's report. I know it's hard to do, if it's what you are looking for.

[diggity]

Why would anyone forgo an inspection? Sounds fishy to me...that's just not smart on the part of the potential buyer. No telling whay you would get yourself into. Unless you have unlimited funds. Sometimes you have to check your emotions & look at the bones of the home, or the inspector's report. I know it's hard to do, if it's what you are looking for.

They may not have skipped the inspection, i'm just speculating because I've seen that happen before. I agree it's not a smart thing to do though.

As far as this scenario goes...I don't see the benefit of your agent bringing another buyer to the same property. She essentially already had this one sold (if you guys could have worked out the repairs) so why would she risk alienating you guys to sell the same house when she would have been better off finding them a different one? Very strange indeed.

[Achieve]

Although it does sound fishy, I have had situations where a 2nd party made an offer w/o inspections when in the face of a primary offer asking for repairs. The way the real estate purchase contract reads is you have the right to terminate during the termination (option) period...Not renegotiate the offer. To do that, you must terminate the offer/contract and resubmit with the new offer..hence..opening it up to any other contracts on the table. As you were made aware of before you terminated/ optioned out, there was a competing offer on the table. If you wanted the home, your choice was to accept it as originally negotiated. Only then would the purchase had been safe.