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How do we know the seller did not want it marketed?
The agent put it on MLS so that he will get dozens of phone calls. Then he can say "That one just sold, but I have others that I can show you.". Getting a listing is not just about selling one home, it is about selling many homes.
You don't think it's kind of a dick move to waste people's time with that crap? This is exactly what is wrong. Or part of it anyway.
So, having explained the risk/reward to the seller am I being shady or is the fully informed seller allowed to make a decision about what they want to do?
If it was your associate, and not his client, that made the offer, then I'd feel a little weird because his personal interest may have colored his assessment. Seems pretty clear to me. And the difference here is probably a lot more than 10-15k.
I am not an advocate of " pocket listings" because it's in the seller's financial interest to expose the property to the widest audience, the MLS. If things are that hot in some markets, one would think there would have been multiple bids for the property. Most MLS expressly forbid such listings or limit the timing before the listing must be posted to the MLS.
"Pocket listings" in my neck of the woods are far and few between. Those that appear to be pocket, are usually the result of an agent's initiative on behalf of a buyer.
Some sellers are willing to forego the "ordeal of listing" and the potential for greater net proceeds in favor of getting it done. Some people are very sensitive to having the interior's of their home exposed on the internet to neighbors and strangers and don't want a lot of people inside their home.
To the OP: To get indignant because an agent is doing their job in trying to develop a lead is a bit naive. If he sounded "shuffley" or "nervous", it was probably because you were probably the 10th caller that day irate that they missed the opportunity and somehow, it was all HIS fault.
House goes up on the Triangle MLS last night. It's in a fairly desirable neighborhood, easily walkable to downtown, at a price that's probably 1.5x the value of the land it sits on. Nice looking house. So the house would have to be REALLY tore up to not sell easily at a significantly higher price. In the one listing photo and on Google streetview, it looks like it's in OK/decent condition, but no idea about the inside.
So we call the listing agent this morning. In a shuffley, slightly nervous voice he tells me that the house sold about an hour after it went up, and that he sold it to a "business associate" of his that he'd showed the house to before listing it. He says that he didn't expect his associate to buy it, but he got the offer and the seller accepted it. He then rolls into the usual realtor spiel, trying to pick us up as clients.
So the listing agent sold it to a friend at what appears to be a lower-than-market price, after putting it up on the MLS for an hour (that'll help his days-on-market stats!), it's still listed as active and he's probably getting lots of calls about it (potential new clients!)
The thing I don't get is, how is this not a breach of duty to the seller? Isn't there a responsibility to the seller to market it widely, to try and get the best offer? How is this not advancing his own interests over the seller's?
As I mentioned above -- getting a "sale" is getting a signed and accepted offer. There's no guarantee that the sale will be completed -- anything can happen in due diligence. So you put it on the MLS and take backups, or allow other people to keep an eagle eye on it in case it drops out of due diligence. If you were that interested, did you inquire about the possibility of putting in a back-up offer?
I get that, I'm just wondering where the line is. Can a listing agent advise a seller to put a low price on it so their friend will get a better deal?
Also, there was no "coming soon" sign, I drive by it every day.
No, because we typically have fiduciary duties to BOTH parties. At the very least the listing agent has fiduciary duties to his listing client over his "friend" who he may or may not have agency with at that time. Can't do that. Won't do that, not worth losing my license and being brought before an Ethics panel over one sale.
I'm not saying that stuff does not happen, cause it does. Just don't always assume its shady.
For us, we handle those situations very delicately, as we don't want the appearance of anything "inappropriate" and want both parties to feel they were both treated fairly and honestly.
If the seller didn't want it marketed, why did the agent put it on the MLS?
It's certainly possible the seller was fully informed making the decision. If that's the case, my error. It does not appear that the seller lives or lived in the house (possibly a rental from what I hear), and may have their own reasons for taking the deal.
But there's a few too many things that smell a little fishy - Selling it to a friend of the listing agent, the surprisingly (really, really surprisingly) low price...
If it sounds too good to be true, it probably is. And for all you know the previous resident was a cat hoarder who stole the copper pipes and tore out the cabinets, explaining the low price.
This was NOT a "Pocket Listing," or at least, no indication that it was has been created by any of the information presented.
The buyer was slow to the party, waiting until the next day to approach the listing agent. That is too long around here right now.
OP, IF you actually have interest in the house, write a solid back-up offer. Go to contract in 2nd place and wait for a termination.
Be a buyer.
That it is still Active is hardly a violation of any standard. He has 48 hours after contract to change the status. As an "Active" or "Contingent" TMLS listing, it must be able to be shown.
The agent puts it in MLS because otherwise it cannot be used for comps, cannot be marketed further, and he needs to look for back-up offers.
While it is unfortunate that there are many members of Triangle MLS who do not understand the MLS rules, and have other ethical hurdles, there is absolutely nothing in this thread that indicates that the listing agent did anything wrong.
Quote:
Originally Posted by dblackga
As I mentioned above -- getting a "sale" is getting a signed and accepted offer. There's no guarantee that the sale will be completed -- anything can happen in due diligence. So you put it on the MLS and take backups, or allow other people to keep an eagle eye on it in case it drops out of due diligence. If you were that interested, did you inquire about the possibility of putting in a back-up offer?
There it is: "...putting in a back-up offer." YEP.
Where I work, it ain't a sale until the closing attorney disburses funds after recording the deed.
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I have a home coming on the market in about 3 weeks. The owner has agreed to let an agent show it next week.
If the house goes under contract, the seller will be 100% aware and agreed that it's what they want to do.
Many times these types of deals bring a high premium to the seller since it's not on the market.
The seller is aware, it's his decision, he sets the price and he can agree to the offer or not.
You don't think it's kind of a dick move to waste people's time with that crap? This is exactly what is wrong. Or part of it anyway.
I'm curious who wasted time?
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