another real estate question (sale, rental, broker)

[calvinsmom]

We have put an offer in on a house- dual agent - so she represents us both- but can someone tell me if this sounds right? We put in an offer, and our agent called same day saying that there was another offer. Now, she can't tell me if the other offer is higher or lower, but would I like to counter/modify? I feel like I am way in the dark. For all I know the other offer was 10 g lower and now I'm supposed to raise my offer? This seems very backwards , is this how it's done? Thanks

[forest beekeeper]

Originally Posted by calvinsmom

We have put an offer in on a house- dual agent - so she represents us both- but can someone tell me if this sounds right? We put in an offer, and our agent called same day saying that there was another offer. Now, she can't tell me if the other offer is higher or lower, but would I like to counter/modify? I feel like I am way in the dark. For all I know the other offer was 10 g lower and now I'm supposed to raise my offer? This seems very backwards , is this how it's done? Thanks

I would not change my offer.

Sit back and wait a week.

[WhoFanMe]

calvinsmom, I'm not sure why you elected to work with a disclosed dual agent when 3 posters on this forum warned you against doing that in January. While it's legal in Maine when both parties consent, it's not something for somebody who's not familiar with the area and how real estate works to have such limited representation in such an important transaction. One of the biggest myths about real estate is that if you use the listing broker, you'll save money vs. having full representation. Nothing is further than the truth, all that means is that the listing broker's office does not split the marketing fee with another agency, but it does not mean that any savings will be passed along to the consumer! In fact, when I look at history in MLS and see homes that seem to have been purchased for more than they should have, I invariably see the same agent on both the buy side and the sell side! Enough of the scolding - you have a decision to make now as to how much you want this house. Your agent is not obligated to share anything with you, but I imagine your offer has an expiration date coming up quickly and you have a decision to make. Has he or she done a market analysis on the home for you? Is your offer inline with the market, below or above? Have you looked at any homes in addition to this one that you could jump to if you lose this one? When do you have to be in the home? If it doesn't feel good, I'd walk away, if you feel that the home is perfect for you and you plan to stay for a number of years, then go for it. If this one doesn't work out, please go and get yourself some independent representation, you'll be glad you did.

[msina]

excellant advice

[maine4.us]

With the market the way it is, unless you are prepared to go it alone (which is what you are doing) let your offer expire, and get another agent, this time a buyers agent. While this deal might be gold, it could just as easily be lead, and sink you to the bottom. If you are so in love with the property, tell your the agent you will have to think before doing anything. If it is a ploy, you will have lost nothing, because if there is not a bid, you have the property, if there is, therein lies the problem, you don't know what the bid is. It could actually be lower than your own.

This deal smells like fish out of water 3 days to me. Beware!

[schizuki]

Originally Posted by maine4.us

This deal smells like fish out of water 3 days to me. Beware!

Stinks to high heaven. There is no way I would trust this person. While it may be legal, it is unethical to the highest degree. What else may this person be shafting you on?

You know what I'd do? Just what they asked - make another offer. For $30,000 less. If they don't like it, move on.

[calvinsmom]

Thanks- I didn't mean to get a dual agent- actually went with someoone we didn't know over someone we had been recommended beacause first agent was listing agent on Property we were in love with over the internet. Turns out it was a great bargain due to shared driveway with town dump( and I mean driveway, Not road!). I liked the woman, and signed with her as buyers agent- we went to look at a few more properties, and she made it VERY clear that she was listing on one, plus it wasn't what we were looking for (older fixer-upper with rental unit ,in town) but the price was great, and it could be a stepping stone to what we want, but can't afford right now. We've done rental, and fixer-uppers before, and had great luck.
So

[Acadianlion]

Ah, the myth of dual agency rears its ugly head.

Dual agency agreements were clever devices foisted off on the public by the real estate commission in Maine that was, ahem, "highly influenced" by the serious money of the real estate brokers. The scam was supposed to enable a level playing field for those who do and do not know a great deal about buying and selling real estate. In fact, it did nothing other than to allow some real estate brokers to inflate selling prices and commissions to the agency by slamming the door in the face of co-brokerage at the buyer's expense.

The first rule in real estate is the only basic one that the buyer needs to remember: the broker ALWAYS represents the seller.

By signing an agreement to allow the broker to represent both the buyer AND the seller, you have allowed the fox into the hen coop.

I think that calling you right after you made an offer is nothing more nor less than an old fashioned "bait and switch". That broker needs not only to have his/her license revoked, and I would also recommend that he/she spend some time in the tropics reading about ethical behavior in selling. I know of some nice rooms in a place called Devil's Island that would provide the proper tutelege environment.

The other advice about what to do about this is all appropriate. If you want the house then wait a while to see what shakes out. OR you could call the broker out on what he/she has done, which is what I would do. I would call the broker and ask which offer was written on the contract first by exact date and time. If the broker doesn't know, then there is a SCAM running here. Inform the broker that you wish to cancel your dual agency agreement and will have a lawyer represent you in any futher negotiations.

I was looking at some property a bit more than a year ago, and the broker who had it listed promptly introduced me to another broker in the same agency who was going to serve as "my" broker. We never got as afar as signing any sort of agreement, nor did I make an offer through that agency because the broker ended up behaving like such a greedy little twerp TO THE SELLER, that the seller fired the whole bunch of them.

In the end, I waited about nine months and bought the land negotiating my own purchase and sale directly with the seller, using the services of my lawyer working with his lawyer for all the document work.

What that broker has done to you is probably legal to the letter of the law, but sounds for all the world like an old fashioned scam of the lowest order.

We will all be interested to hear how this all plays out.

[contented]

i've been on both sides of the fence on this issue, but if memory serves me right it always involved full price offers. it was explained to me by the sellers agent, whom i know and trust, that they had another fpo and did i have any interest in a one time "last and best" offer. the bad luck timing of it was annoying but i wanted that land and raised the offer by $5000 and got it. a few years later, come to find out, it was one of my clients (i operated a construction/remodeling company at the time) and they in fact had made a full price offer but were so annoyed at the "last and best" business they withdrew altogether.

the same thing happened in reverse while selling a small parcel my realtor received two exact full price offers and we went to the last and best solution and one of them got it with a small bump in the offer.

for me it was always a free will thing in every situation with every party and doing land dealings in my small coastal town the truth will always come out eventually. if my realtor ever brought me some underhanded scheme (uneven offers) to whittle a few more bucks out of a potential buyer, we'd have a heated ethics discussion.

not sure this is any help, but its been some of my experience.

[calvinsmom]

Thanks you all! We did not bid any higher- didn't feel comfortable doing it in the dark- so we are going to go up in the spring, spend some more time in the area and look at land. With the market as it is,maybe prices will drop to where we can get land with a fixer upper on it.