Is Your Agent One of the Multiple Bidders on The Home You Want?

By
Real Estate Broker with CJ Realty Group, Inc.

Is Your Agent One of the Multiple Bidders on the Home You Want?The buyer was ticked.  Actually that is putting it mildly and not the word they used but it will suffice for a public blog.

The reason?  A few months ago they had made an offer on a property in Prince William County VA and their agent told them the property had multiple offers and theirs was not selected.  Okay it happens and so they went on to look at other properties before putting their search on hold during the cold snowy winter.

Fast forward to this week and they call me to help them start their home search again.  The first question they asked me was I currently investing in real estate in our area?   Why I asked? 

It seems the home they had made an offer on recently reappeared in the MLS now advertised as remodeled, upgraded, spiffed up and ready for a new owner.   But wait the listing agent on the property is their former agent.  Curious they went to the Prince William County tax records and find not only is the agent the listing agent but they are also the owner.

 

Say what?  They present an offer through the agent, don’t get the property but the agent does?  There are two sides to every story and all I have is the prospective buyer’s one.  I can certainly see in the MLS what the agent paid but don’t know anything about the terms of the buyers offer or how many other offers there were on the home.

However the situation raised an interesting question.

As an agent should you disclose to a buyer your interest in investing in the same property they want to buy?


It would seem to me to be the ethical thing to do.   What would you do?

Posted by

                                   Real People*Real Lives*Real Estate

If you are interested in learning more about the Northern Virginia Real Estate market including Alexandria, Arlington, Fairfax and Prince William Counties give Cindy Jones and CJ Realty Group,  a call at 703-346-2213. 

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Check out www.varealestatetalk.com and www.cjrealtygroup.com for more information.
CJ Realty Group Woodbridge VA 
Real People*Real Life*Real Estate

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  1. Pat Fenn 12/14/2010 03:20 PM
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Comments 31 New Comment

Rainmaker
525,466
Cynthia Larsen
Sonoma County Real Estate Broker
Safe Haven Realty

This agent should have done two things differently.  1) disclosed to the buyer that they were intending on bidding on the house.  2) refer the buyers to a different agent for that property only.  That agent should lose his/her license, what they did was SO wrong.

March 22, 2010 03:59 PM
Ambassador
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Erica Ramus
MRE, Schuylkill County PA Real Estate
Erica Ramus - Ramus Realty Group - Pottsville, PA

I would NOT allow any agent in my office to behave that way. Seems like a lawsuit waiting to happen. If you want the house, refer the buyer out to someone else.

March 22, 2010 06:10 PM
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1,770,506
Cindy Jones
Pentagon, Fort Belvoir & Quantico Real Estate News
CJ Realty Group, Inc.

Kay-i put the situation in the entire questionable category.

 

Lenn-I would agree but it is up to the buyer to decide if they want to puruse a course of action.

Cynthia-it isn't a scenario I would like to find myself in with clients.

Erica-I would agree.  I referred buyers once when I had multiple buyers interested in the same property.  There was no way I could represent both.

March 23, 2010 05:58 AM
Rainmaker
312,527
Carol Culkin
Overland Park
Reece & Nichols

Oh my!  I can't imagine why this agent would not have turned the buyer over to another agent in the office or the managing broker under these circumstances. Even if it's not against any of the rules, I would not feel ethical bidding against a buyer who I represent.  If it keeps you up at night ...it's not right. And, I can't imagine any agent with good morals NOT being up at night thinking about this situation playing out. 

March 30, 2010 09:23 PM
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Cindy Jones
Pentagon, Fort Belvoir & Quantico Real Estate News
CJ Realty Group, Inc.

Carol-I agree 100%.  It doesn't seem like good practice at all.

Dedra-certainly there are clear responsibilities and in my opinion the agent violated them.  However that is only my opinion and the buyer is pursuing their options on a complaint.

March 31, 2010 07:11 AM
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Cindy Jones

Pentagon, Fort Belvoir & Quantico Real Estate News
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