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Old 03-10-2009, 09:38 PM
 
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Sorry, I should have posted this in its own thread originally:

I have no experience with short sales except for very recently. We made an offer on a property that was a few percentage points above the list price (because we knew there were two other offers coming in on the same day) only to be told that the lender wanted 25% more than the list price.

All three of the offers walked away.

If the listing agent and the seller know that the lender will not accept an offer below a certain price, isn't it dishonest to list it just to "bait and switch"?

Or am I just naive to think anyone is honest in the real estate business.
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Old 03-11-2009, 08:36 AM
 
Location: Just south of Denver since 1989
11,815 posts, read 34,300,444 times
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what is the switch?
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Old 03-11-2009, 08:36 AM
Status: "Made the Retirement Run in under 12 parsecs!!!" (set 4 days ago)
 
Location: Cary, NC
43,077 posts, read 76,631,641 times
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Quote:
Originally Posted by Samantha S View Post
Sorry, I should have posted this in its own thread originally:

I have no experience with short sales except for very recently. We made an offer on a property that was a few percentage points above the list price (because we knew there were two other offers coming in on the same day) only to be told that the lender wanted 25% more than the list price.

All three of the offers walked away.

If the listing agent and the seller know that the lender will not accept an offer below a certain price, isn't it dishonest to list it just to "bait and switch"?

Or am I just naive to think anyone is honest in the real estate business.
Oh, Samantha, you were doing so well until that last line.....

Yes. That IS a dishonest practice used to attract attention. It reflects on the Listing agent, but is not a factor in considering the great many agents who would not engage in the activity.
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Old 03-11-2009, 08:57 AM
 
1,662 posts, read 4,480,484 times
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Originally Posted by MikeJaquish View Post
Oh, Samantha, you were doing so well until that last line.....

Yes. That IS a dishonest practice used to attract attention. It reflects on the Listing agent, but is not a factor in considering the great many agents who would not engage in the activity.
I know, I apologize. That last line was a venting of my frustration. I have a very good agent who would not do this. But even he will not say that she's being "dishonest" he skirts it saying she's "clueless" Please, she's been in the business for 30 years, she knows exactly what she's doing. It's called LYING.

2bindenver, the "switch" is the higher price. The house is listed at $X. But both the seller and the listing agent have been told by the lender that no price less than $1.25*X will be accepted.

But the house remains listed at $X with a note about "Check out the great price on this house!" So the "bait" is the great price. (It would be a great deal at the price, and we even offered $1.03*X because we really liked the house.) and the "switch" is that once the offer is made, the potential buyer will be told the real price. Then the seller and the listing agent will act surprised and express their frustration and exasperation to the buyer and hope he still wants the house.

It's dishonest.
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Old 03-11-2009, 09:03 AM
Status: "Made the Retirement Run in under 12 parsecs!!!" (set 4 days ago)
 
Location: Cary, NC
43,077 posts, read 76,631,641 times
Reputation: 45393
Quote:
Originally Posted by Samantha S View Post
I know, I apologize. That last line was a venting of my frustration. I have a very good agent who would not do this. But even he will not say that she's being "dishonest" he skirts it saying she's "clueless" Please, she's been in the business for 30 years, she knows exactly what she's doing. It's called LYING.

2bindenver, the "switch" is the higher price. The house is listed at $X. But both the seller and the listing agent have been told by the lender that no price less than $1.25*X will be accepted.

But the house remains listed at $X with a note about "Check out the great price on this house!" So the "bait" is the great price. (It would be a great deal at the price, and we even offered $1.03*X because we really liked the house.) and the "switch" is that once the offer is made, the potential buyer will be told the real price. Then the seller and the listing agent will act surprised and express their frustration and exasperation to the buyer and hope he still wants the house.

It's dishonest.
Classic bait and switch means an upsell to a higher margin/cost product.
"Oh, you don't want that 3/0/2. The porch is falling off and the outhouse has yellow jackets in it.
Most people prefer to look at this 4/3/2 since it is newer and better condition, at only $100,000 more," might be a classic bait and switch script.

Knowlingly advertising a price that is not close to minimum is just dishonest. False advertising.

Last edited by MikeJaquish; 03-11-2009 at 09:57 AM..
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Old 03-11-2009, 01:31 PM
 
Location: Salem, OR
15,509 posts, read 40,231,078 times
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So, your agent produced a ready, able, and willing buyer to the listing agent at the terms listed on the MLS?? If so, your agent would have a case for being paid. A seller can't refuse to sell based on the terms in the MLS, per our MLS agreement that they (the seller) sign.

Your agent should file a complaint with the MLS on this one.
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Old 03-11-2009, 01:46 PM
 
Location: Just south of Denver since 1989
11,815 posts, read 34,300,444 times
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Originally Posted by Silverfall View Post
So, your agent produced a ready, able, and willing buyer to the listing agent at the terms listed on the MLS?? If so, your agent would have a case for being paid. A seller can't refuse to sell based on the terms in the MLS, per our MLS agreement that they (the seller) sign.

Your agent should file a complaint with the MLS on this one.
Sorry, that would not be true. The listing broker has a claim to commission per the agreement with the owner, but the selling agent has no such agreement with the owner.

There was a house across the street from me lots of years ago, that was put in MLS for $18,000. I wrote an offer for $28,000 and gave the listing broker a earnest money check for $18,000. The seller didn't have to sell it to me, nor did the listing broker have to pay me. The house was listed at $180,000 - it was just a typo.
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Old 03-11-2009, 02:22 PM
 
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Originally Posted by 2bindenver View Post
Sorry, that would not be true. The listing broker has a claim to commission per the agreement with the owner, but the selling agent has no such agreement with the owner.

There was a house across the street from me lots of years ago, that was put in MLS for $18,000. I wrote an offer for $28,000 and gave the listing broker a earnest money check for $18,000. The seller didn't have to sell it to me, nor did the listing broker have to pay me. The house was listed at $180,000 - it was just a typo.
This isn't a typo. It's just a deceptive listing. Probably not illegal, but IMO unethical. We canceled the contract today. I'm waiting for them to come back and try to make a deal.

We will keep looking and in another month or so if we haven't found something else, when it still hasn't sold, approach them again ... "Howdaya like me now?"
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Old 03-11-2009, 02:43 PM
 
Location: Salem, OR
15,509 posts, read 40,231,078 times
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Quote:
Originally Posted by 2bindenver View Post
Sorry, that would not be true. The listing broker has a claim to commission per the agreement with the owner, but the selling agent has no such agreement with the owner.

There was a house across the street from me lots of years ago, that was put in MLS for $18,000. I wrote an offer for $28,000 and gave the listing broker a earnest money check for $18,000. The seller didn't have to sell it to me, nor did the listing broker have to pay me. The house was listed at $180,000 - it was just a typo.
I disagree. The issue is not with the owner, I agree on that part. The selling agent could file a claim against the listing agent for compensation. What the listing agent is saying is that if you bring my client a buyer at such and such price I will pay you x%. That is the point of the MLS. The listing is an agreement to pay a selling agent who brings a buyer at the terms specified.

If the selling agent brings a buyer with the terms as specified on the MLS for compensation and those terms aren't correct (as in this case) then at least in my MLS you would have a case against the listing agent.

There is a big difference between a typo and misrepresentation. This listing agent has intent to mislead. It completely violates our MLS rules.
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Old 03-11-2009, 02:45 PM
 
1,662 posts, read 4,480,484 times
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Quote:
Originally Posted by Silverfall View Post
There is a big difference between a typo and misrepresentation. This listing agent has intent to mislead. It completely violates our MLS rules.
So to whom do I report the listing agent?
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