Real estate agent question

[LBrowning]

We listed our house with a local RE company a couple of months ago. Our listing agent has expressed an interest in buying the house. Here's my question. As our agent, he should be trying to get us the best price. As a buyer, he is looking for the lowest price, a seeming conflict of interest. Your thoughts?

 

[Another Reader]

Yep, there is a conflict of interest here. He should have discussed buying the house before you signed the listing agreement. Once you signed that, his duty is to get the house sold for the highest price and the best terms, i.e. to represent your interests. Looks like he wants to buy it at his price and have you pay him a commission as well instead of representing your interests. In your shoes, I would be concerned that he might not put forth his best effort to represent you. I might try to get out of the agreement and then talk to the broker about the agent's questionable tactics if he refuses.

ETA: If the house hasn't sold after a couple of months, something is wrong with the price, the condition, or your agent's representation of you and the property. Is it properly advertised? Is the listing attractive? Are other agents showing the property? If not, you have the wrong agent.

 

[Lakewood90712]

? where . In most markets, you should have several offers by now.

If you are in a slow market, or the property is distressed, your current agent as a buier might be the best offer, and you pay no commission.

Perhaps you should interview another broker , for purposes getting another market evaluation.

 

[pb4uski]

I wouldn't be so quick to conclude the agent has done wrong... it could be that his interest in buying the house came after you listed with with him and he became more familiar with the property.

Has he mentioned what he would be willing to offer?

Now that he is interested in buying he should recuse himself from representing you and let another agent in the office or the broker/owner of the firm step in to represent you. If he is a sole proprietor, then you could just negotiate with him directly.... or perhaps get a real estate lawyer to represent and advise you in the negotiations.

 

[COcheesehead]

Conflict of interest? YES.

 

[brett]

Why? So he can flip it.

Substantial conflict of interest. Danger!

 

[jazz4cash]

No problem if it’s been 2 months with no offers accepted if your realtor pays list and waives commission.

 

[COcheesehead]

No problem if it’s been 2 months with no offers accepted if your realtor pays list and waives commission.

Seriously?

 

[Jerry1]

Conflict of interest? YES.

For sure. Most likely in a realtor/seller relationship you’ve shared the amount that is the least you will take for the property. With that knowledge your agent can’t offer you something that is arms length.

Cancel your contract and start over. A significant line has been crossed. Once you tell him no, that you won’t sell it to him, how motivated do you think he’ll be to sell your property? That’s the second line that he crossed. Time for a new agent. In that process, you need to either get or accept better advice. As others have mentioned, there’s a reason you haven’t had any offers yet.

 

[Sunset]

No problem if it’s been 2 months with no offers accepted if your realtor pays list and waives commission.

Unless the list price was set low, as the agent has done this before and simply disuades potential buyers from even looking at the place.

"oh sure 8pm will be fine to view it, just be careful of the asbestos... "

Illegal, yes, but nobody will know what the agent says to potential buyers.

 

[Sunset]

OP - are you sure your listing price is correct ?
I'd get some other agents in, tell them you are near the end of the listing time and are unhappy with results so far, ask them what they can do and get their opinion on the list price.

Have you had buyers looking at the house ?

I sold a house a few years ago, and after it was all done, the agent let it slip how there was another offer presented, but she talked the buyer out of it, and never showed or told me about it. I will never use her again.

 

[travelover]

For sure. Most likely in a realtor/seller relationship you’ve shared the amount that is the least you will take for the property. With that knowledge your agent can’t offer you something that is arms length.

Cancel your contract and start over. A significant line has been crossed. Once you tell him no, that you won’t sell it to him, how motivated do you think he’ll be to sell your property? That’s the second line that he crossed. Time for a new agent. In that process, you need to either get or accept better advice. As others have mentioned, there’s a reason you haven’t had any offers yet.

This^^^^ I'd cancel the contract immediately and get another agent. If the current agent squawks, tell him / her that you are reporting them to the appropriate governing body.

 

[brucethebroker]

The Realtor is not thinking this through. As the listing agent AND buyer, the door is wide open for future second guessing and/or litigation. I am a Realtor, and property buyer, but would not want to be involved in that situation.

(Assuming your listing agent is not the owner/broker of the real estate company), contact the owner/broker and request assignment to a new Realtor or termination of your listing contract. If he/she refuses, contact the local MLS office that your Realtor is affiliated and file an ethics complaint. Once the broker is notified of the complaint, you will most likely be offered contract termination, and you will be able to shop for a new listing Realtor.

If contacting the MLS fails, contact your state real estate commission. Neither of these steps will cost you any money, unlike hiring legal assistance. Good luck.

 

[brucethebroker]

This^^^^ I'd cancel the contract immediately and get another agent. If the current agent squawks, tell him / her that you are reporting them to the appropriate governing body.

Most real estate listing contracts require both parties to agree to cancellation. The owner of the property cannot just cancel the contract.

 

[socca]

We listed our house with a local RE company a couple of months ago. Our listing agent has expressed an interest in buying the house. Here's my question. As our agent, he should be trying to get us the best price. As a buyer, he is looking for the lowest price, a seeming conflict of interest. Your thoughts?

After the listing expires and you re-list with another agent, no problem - your former agent then just becomes another potential buyer. Until then, big problem. I would try to immediately cancel the listing and find another agent.

This just happened to my sister, but she hadn't signed a listing agreement yet. Her top candidate for listing agent expressed an interest in buying the house (low-ball offer); the candidate lost the listing and didn't get the house.

 

[Carol1862]

What company does this agent work for? I’d call and get the manager/owner on the phone and share my concerns. This way, they’re notified and you were just doing your due diligence.

 

[Midpack]

Sounds like a conflict of interest, but what are the comps? Not comps your realtor presents, but do your own. You can easily find properties that sold in your neighborhood and area online these days. That would tell you a lot.

 

[ivinsfan]

A few more details would help. Does your house need a lot of work from a new buyer?

How many showings have you done? Zero would indicate it's priced too high, or the condition is keeping away buyers.

Did you RE give you a price he would pay and how close is that price to your desired offer. I'm reminded of an old HGTV show that featured sellers who way overprice their homes. They would show them 3 different homes that were nicer, bigger and cheaper then what their house was listed at. 100% of the time the sellers would say my house is special and my ask is reasonable.

 

[jfn111]

We have a local Broker that advertises the "we guarantee the sale of your house". He gets a lot of business with this even though the disclaimer is they will give you an offer, not necessarily the list price on the house.
Real estate agents buying homes is nothing new. They have to disclose they are agents and smart ones would waive the commission and find a way that you net close to what your expecting. (Our state Commerce dept. views it as wolves vs sheep and no agent wants a complaint to the Commerce dept. from a disgruntled seller).

 

[Doribe]

I had to sign off on my RE Agent in order for her to represent the buyer, as well as me, the seller. I agreed because the house was in a small rural community and I wanted every opportunity to sell a one-of-a kind house.

If your agent wanted to buy your house, he should not have even signed a contract with you. He should have made you an offer. I would discuss this with my lawyer and try to get out of the contract as soon as possible. Start interviewing other agents. You are losing precious time.

 

[marko]

I suspect that the agent is acting as a 'straw' for another buyer.

Example: If you knew that Bill Gates wanted to buy your home (ok...just as an extreme example) you might ask for a much higher price knowing it was Gates who was interested. A straw buys the home at a lower, normal price and then sells it to the intended buyer almost as a pass-through

 

[Midpack]

If your agent wanted to buy your house, he should not have even signed a contract with you. He should have made you an offer. I would discuss this with my lawyer and try to get out of the contract as soon as possible. Start interviewing other agents. You are losing precious time.

The agent may not have had any interest in buying the house when he/she took the listing. Now two months later, without any offers, the agent might be the sellers only timely buyer. It's not clear, and it could be a sketchy situation, but who knows. If the OP wants a new agent, so be it...

 

[ExFlyBoy5]

Most real estate listing contracts require both parties to agree to cancellation. The owner of the property cannot just cancel the contract.

Except I would argue that the breach of fiduciary duty owed by the agent is a material breach and a repudiation of the contract. The broker would be wise to not argue the voiding of the contract.

 

[ivinsfan]

Except I would argue that the breach of fiduciary duty owed by the agent is a material breach and a repudiation of the contract. The broker would be wise to not argue the voiding of the contract.

But if the agent will pay market for the house, and agree to eat his fees, the buyer comes of this with a higher net.

 

[freedomatlast]

I will be selling a house soon and I don't care who buys it, or what their profession is, as long as I receive a check at closing for the amount that I want. I will have done my own comps so I know what to expect.