Are we screwed? (negotiating, agent, commission, sales)
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After our place being on the market forever with no interest, now this happened:
Agent A and Agent B work in the same little office, only a few agents.
A used to be OUR agent, but we went with someone else when the listing expired, due to her negligence.
B brings a very low offer to us. We counter just enough to cover the commission ($10,000).
B's buyer won't budge. We are anxious to sell, so capitulate to the low offer as is. B's buyer seems to be flaking on even that, now. He's a wealthy, successful businessman and it was cash.
Now A brings an offer for the exact same low amount, also cash.
Obviously A and B are exchanging information. Is this ethical?
Now to me, it seems any negotiating power we might have had, is gone, due to A and B knowing each other's business---that we accepted B's low offer. And I'm sure A would not mind screwing us over for not re-listing with her....
Are we as helpless as it appears?
Of course, we ARE glad to have ANY offers, but....
After our place being on the market forever with no interest, now this happened:
Agent A and Agent B work in the same little office, only a few agents.
A used to be OUR agent, but we went with someone else when the listing expired, due to her negligence.
B brings a very low offer to us. We counter just enough to cover the commission ($10,000).
B's buyer won't budge. We are anxious to sell, so capitulate to the low offer as is. B's buyer seems to be flaking on even that, now. He's a wealthy, successful businessman and it was cash.
Now A brings an offer for the exact same low amount, also cash.
Obviously A and B are exchanging information. Is this ethical?
Now to me, it seems any negotiating power we might have had, is gone, due to A and B knowing each other's business---that we accepted B's low offer. And I'm sure A would not mind screwing us over for not re-listing with her....
Are we as helpless as it appears?
Of course, we ARE glad to have ANY offers, but....
Good time to have a conversation with the firm's broker.
But, it is tough when you feel like you have little leverage.
That is possibility. It is also a possibility that just randomly happened. Either way, don't worry about the offers. Just do a highest and best, if you don't like one counter it to a more suitable number.
IMO, agents A & B shouldn't be sharing information with one another but since they are in the same office, it could very well be happening. FWIW, my sister is a Broker and she had a property that went under contract in which I was curious for how much. She said that she couldn't ethically share that with me until after the property closed.
Setting that aside, there is the bright side - you have two offers for a property that has been difficult to sell. It sounds like you've accepted Buyer B's offer? If so, your agent should advise you on if it's feasible to accept Buyer A's offer as a back-up in case the contract with Buyer B falls through.
---that we accepted B's low offer. And I'm sure A would not mind screwing us over for not re-listing with her....
Are we as helpless as it appears?
If you "accepted" the offer, what does the second offer have to do with anything? You can't negotiate another offer if you have one accepted and executed. It can only go in back-up position.
If you "accepted" the offer, what does the second offer have to do with anything? You can't negotiate another offer if you have one accepted and executed. It can only go in back-up position.
I'm not trying to speak for the OP but I think the OP is asking if there is a recourse to follow for the charge that they shared info (i.e. acted unethically) and the pros and cons for pursing some kind of complaint. I don't think they are asking about negotiating the two offers at this point or what the business-as-usual process is. They are worried that unethical behavior (if indeed there was any) has compromised their position and if there are any ideas to pursue this it at this point. Sorry OP, correct me if I'm wrong.
I'm not trying to speak for the OP but I think the OP is asking if there is a recourse to follow for the charge that they shared info (i.e. acted unethically) and the pros and cons for pursing some kind of complaint. I don't think they are asking about negotiating the two offers at this point or what the business-as-usual process is. They are worried that unethical behavior (if indeed there was any) has compromised their position and if there are any ideas to pursue this it at this point. Sorry OP, correct me if I'm wrong.
I didn't read this at all. The OP is talking about negotiating power, and beyond asking if it is ethical, there is nothing mentioned about making any complaints or how to make a complaint if she wanted to.
That is possibility. It is also a possibility that just randomly happened. Either way, don't worry about the offers. Just do a highest and best, if you don't like one counter it to a more suitable number.
As a licensed agent, you're decisively and authoritatively advising the OP to do a highest and best between the two buyers. I think it's irresponsible for a licensed agent to be definitively advising consumers on their sales strategy over the internet with almost no understanding of their specific situation, the buyers involved or anything else. But in this particular case, do you even realize that one of the offers has already been accepted by the OP (at least that's what their post says)? And do you know what the repercussions might be to do a 'highest and best' at this point after accepting one of the offers?
Well I think there is a lot of charged emotion here. You stopped working with Agent A because of negligence?!? If their behavior actually rose to the level of negligence, why would you want to work with anyone from that agency at all? It seems more like you are just unhappy with the service which is not actually negligent.
Also, getting two offers for the exact same amount is not 'proof' of unethical behavior. Given how long it was on the market, it sounds more likely that two buyers came to the same conclusion about your property's worth.
In fact, if the two agents were actually colluding, it would be more likely that Agent A would come in with a cash offer that is more than the first. I mean, if you have already accepted an offer, then Agent A would either want to entice you with a higher offer, or make a lower offer assuming that if the first falls through you will be really desperate.
If you have an accepted offer, and the potential purchaser is indicating that they may not follow through, you need to ascertain whether or not the contract is going to be completed before worrying about a backup offer. However, you're willing to sell for the price, and it seems that you want to be rid of the home, so I would not put off the second offer, especially if the first one falls through. Call the broker and see what's going on with the first offer, if you're unsure, and you can ask how the other agent's purchaser came up with the same value offer. I would deal with the broker because it seems like both agents have failed you, one who did not sell the house and the other who seems to have a buyer who may not complete the deal.
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~William Shakespeare (As You Like It Act II, Scene VII)
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