Where I live and work in Southern California there are lots of buyers and a low inventory of houses for sale. I'm not sure if that has anything to do with what I'm writing about. In the last two months I have been approached by buyers who are interested in my listings with a surprising and very disconcerting offer. They have suggested that they will allow me to represent them as buyers (remember I'm the listing agent) so that I can get both sides of the commission if I will make sure that their offers are accepted. I have been really surprised by such a suggestion. This has happened to me on three different occasions recently. I have told them that if they choose to have me represent them, I will present their offer along with all other offers received but that I will not make sure that their offer gets accepted. Their offers will have to stand on their own. If their offer is the best and strongest, then their offer may be accepted by the seller.
This has made me wonder why would people suggest that a real estate agent do something that is obviously wrong? Is it that there are Realtors out there who would actually do what these buyers suggest? Do they think Realtors are greedy and unscrupulous? Or is it that they think the may be able to get a better deal on the house this way? Or maybe these buyers are having trouble getting offers accepted and are trying to find an "in" with the listing agent? Who knows?
I hope that there aren't Realtors who would stoop to this practice - but there are all kinds of people in this world (honest and dishonest) in all the different professions, including real estate.
Written and posted by: Vicki Pedersen, ABR, Pedersen Real Estate, Riverside/Corona, California, DRE# 01435715 -- Phone: 951-840-5212 vicki@pedersen-team.com http://Pedersen-Team.com
Oh I think there are plenty of agents who are willing to do this, sadly. I've seen a disturbing trend of new listings, priced very well....with very difficult showing instructions. Then these listings go off market without anyone being able to get inside. How is this possible? And the sellers are in on it....The listing agent gives them a discount on the commission if they bring in the buyer. I don't know if this skirts the rules if the seller is in on the deal? but shady for sure.
There are some unscrupulous agents out there but I think it is more in this case that the general buying public doesn't really understand how the transactions work and what your duty is. Flip things around and think of it this way. If you did not get them the house, the buyer might attempt to sue you or the seller not to mention the legal issues regarding your duties as a Realtor. Dual agency is a tricky position anyway.
It is good to have a point of view like yours.
It is good to have a point of view like yours.
Karen, I ave been involved with a transaction where it appeared due to a number of things that took place that the agent did not present my buyers offer to the bank (reo). I think that even if a buyer is in on it, it is still a shady practice.
Tom, I agree that dual agency is tricky and brings up issues that aren't there with single agency.
Darrell, Thanks for reading my post and commenting.
It must happen a lot because many people especially investors call on our REO signs and will only work with the listing agent.
There are plenty of unscrupulous people out there unfortunately. Or maybe they are testers? You never know!