Texas Realty Laws and Ethics (Dallas, Austin: for sale, real estate, lawyer)

[masterT]

My wife and I have been trying to buy a home in the Dallas area, and we've found that it is common practice to lie about incoming offers. For instance we made a offer on a house at 5% below asking price, the listing agent came back and said they had someone look at the house just after us and is going to make an offer. The listing agent implied that nothing less than the full asking price stood a chance. We almost did just that but then only decided to meet halfway and let the other offer come in, and see where we stood. We were told it wasn't good enough, so we just let it go. The house never went under contract, the listing agent later said the other party never made an offer.

The next house, which had been on the market for 6 months had the exact same coincidence. Another party seemed to show up on just the same day as us, and is supposedly going to make an offer. I feel I'm being jerked around again, and that there is no other offer coming in. Is there any law against this manipulative lying, or is this common practice here in the Dallas area?

Thanks.

[compSciGuy]

Instead of 'is it common in the Dallas area', shouldn't you be asking something along the lines of 'is it common in the Real Estate industry in the USA'?

[ETex2]

The bottom line is, the realtor must present your contract to the seller. If he didn't, there is a problem unless the seller told him not to bring anything under full listing price. There may have been laws broken, but that's up to a lawyer to advise you about. There may have been a breech of ethics, which realtors and licensed sales people must uphold. A call in TREC in Austin might be helpful. Your own agent should be able to give some advice as well. Good luck.

[loves2read]

where was your agent?

we had that situation come up a year or so ago when we were bidding on house in Colleyville--there were multiple offers--and some of them for more than asking price--and the house sold for more than asking price...
so sometimes agents don't lie...but sometimes they do...

[masterT]

I ask if it's common practice here, since I have relatives in other states that are realtors, and have not encountered this practice. Maybe it's just an extraordinary coincidence, but I'm more inclined to believe the practice is used because it works, and that even if there are laws against it, it would be difficult to prove.

[billdfw]

I would not worry about it. Many realtors are just like used car salesman, although there are some good ones out there. Just worry about what price you want to pay.

And, if you are still interested in the first house, you have a nice advantage for negotiation now. I would go back in with your first offer of 5% lower.

[momof2dfw]

No, it is not common practice to do this here. Does it happen? On occassion and to have it happen to you twice recently is just soooo not the norm. I think it did happen to us once before we bought our current home. The house we saw and wanted to put an offer on came back w/ "another offer is coming in" too. My mother was our realtor and she quizzed the listing agent BIG TIME on that to see if it was legit. We ended up walking anyway as I did not have a good feel for that house and it never sold. The house right next door went up for sale the same day as this "other offer" and sold VERY QUICK so I don't know if this "other offer" went for that one and did not bite either because they heard of OUR offer.

Go with what feels right for YOUR FAMILY! If it doesn't feel right then no amount of twisting my arm is gonna make me put in an offer on a house I'm not gung ho about.

I think what you have run across are some agents that are new to the field (there are a LOT of those here) and hungry for a sale. So they will try anything. Not saying YOUR agent is like this but the listing agents might be.

[5stones]

we had a simulair thing happen when we bought our house. We looked at the house the seller agent was there doing maintence (since it was empty). We made an offer that day, the seller agent said they were going with another offer, DIDN'T ask our agent what our offer was etc.... Our agent was quite puzzled said she had never heard of a seller agent NOT wanting to know what each and every offer was. SO we walked and didn't try again.
Bought a house down the street in a much better location etc...

The original house never sold (back in 07) and is now back on the market forthe exact prce it was in 07. NO-one ever bought it it's been sitting empty now for about 2 years.

Very strange.


Our new neighbors had the same story as you. Put an offer in and were told they had another offer that day. The buyers then walked and put an offer in on another house ...that fell through due to failed insp. Went back to the original home with the same offer and didn't budge on price...after a few days the seller agreed and it was sold. I know for afact they didn't have ANY other offers, they were always talking about how despirate to sell they were, and they had only a few showings etc...

SO yes it happens. Maybe more due to the slowing market and agents are trying to get the best price etc... This is the only time we have bought in a "buyers mrk" the other time have been in RE boom.