Short Sale- Multiple Offers (real estate, broker, house)

[Curios22]

My husband and I recently put an offer on a short sale property. There was a total of 4 offers put in on this property in one day. The listing agent said she would turn the offers into the bank as they come and she would not disclose the amount of the offers. We offered above the asking price due to multiple offers and found out 2 days later that we did not get the property, someone had offered higher. After looking at the listing today, I see that the listing agent is also the selling agent. Is that legal, since there were multiple offers and she had access to the amounts and could inform her buyers to what price to offer?

[madpaddy]

Originally Posted by Curios22

My husband and I recently put an offer on a short sale property. There was a total of 4 offers put in on this property in one day. The listing agent said she would turn the offers into the bank as they come and she would not disclose the amount of the offers. We offered above the asking price due to multiple offers and found out 2 days later that we did not get the property, someone had offered higher. After looking at the listing today, I see that the listing agent is also the selling agent. Is that legal, since there were multiple offers and she had access to the amounts and could inform her buyers to what price to offer?

As long as the seller and eventual buyer were both aware that the agent was representing both sides of the transaction, it wouldn't be illegal. Unfair to the other bidders? Maybe. Illegal? No.

Furthermore, the seller always retains the legal right, in a multiple offer situation, to table one or more offers and initiate further negotiations with any party ...even when the seller has asked everyone to "make your best offer."

[yousah]

Best thing to do is to put a time limit on your offer. You can also request that any communication from the broker be in writing. What I find most often is that the selling broker will lie to you about what's happening with your offer if it's an REO property like you describe. It's real easy for the broker to use the bank as an excuse to hold things up while shopping your offer around to get a higher price. You might want to call the bank to make sure your offer was at least presented to them. If it was then that's all you can ask for. But it's in the seller's best interest to have also gotten back to you to see if you would raise your offer. So it's somewhat unusual for you to have lost out without someone giving you a chance to do so.

[Ligal3030]

I purchased a short sale a year ago. Went to look at the house the day after the house went on the market. I was the first person to see the house and while I was there viewing the house, there was plenty of activity. I put an offer in that day. The next day the agent called and said they had several offers on the table and were looking for everyone to come back with their best and final offers. I went over asking as well. I didn't have an agent when I went to look at the property and saw several others with agents while I was there. In the end my offer was accepted. Not sure if it was because the selling agent wouldn't have to share the commission with another agent.

[linicx]

In Illinois a real estate agent must be licensed to sell real estate. Many work under a broker--owner though the owners' agency. Most of the broker-owners belong to and market through the Multiple Listing Service. Most are menbers of the local Roard of Realtor.

When it comes to Independent realtors selling another agents property, it can be tricky. Generally speaking, when this happens, the Broker-Owners' set terms and conditions for the sale and agree on the commission percentages long before the prospective buyer ever sees the property in question. Some of these deals are easy and friendly while others are impossible. It depends upon who is calling the shots and how badly they want a commission from the sale. I live in such a place. The owners, A and B, are sworn enemies. A does not show B listings, whereas B does not show A's listing. The losers are the residents who put up with it.

[SariLevy]

The listing agent has the duty of obtaining the best offer for her client and presenting all offers. If you had a confidentiality agreement with your offer and your offer amount was disclosed, then the terms of the confidentiality agreement would have been violated.

[linicx]

Confidentiality in multiple offers is written in the contract offered by potential buyers. It may not be legally revealed until there is a firm offer. After the Closing, the selling price becomes a matter of public record.

Generally speaking an offer is brought to client and should be answered within 24-hours unless there is mitigating circumstance. If there are multiple offers on the table the realtor can tell her client that their offer is low or high, and nothing else. She can also take a counter-offer from the seller to her client

[yousah]

In Illinois a real estate agent must be licensed to sell real estate. Many
work under a broker--owner though the owners' agency.

Umm, there is no longer a salesperson-agent license in Illinois. All licensees are brokers who work under a managing broker.

Confidentiality in multiple offers is written in the contract offered by
potential buyers.

That would be extremely unusual in Illinois considering that there is no such language in the standard contracts. Adding such language by the broker would constitute unauthorized practice of law. The more common scenario is that the listing broker would attempt to garner multiple offers in order to get the highest sales price for their client. The main recourse by the buyer(s) is to put a deadline in their offer so as to limit the amount of time that a seller would have to continue to shop around their offer.

If there are multiple offers on the table the realtor can tell her client that
their offer is low or high, and nothing else.

The listing broker can provide whatever detail they'd like, subject to permission from their seller-client. Some sellers want their broker to disclose the actual terms of competing offers while others keep it a secret and tell all buyers to bring in their best offer the first time.

You don't actually sell real estate, do you?