Unethical Broker Question (Portland: real estate, mortgage broker, loan)

[theschmouse]

I'm dealing with a bad sellers agent. Here's my story: I placed a full price offer with an approval letter from my bank through my agent. He faxed the offer to the sellers agent last night at 6:00. The agent called him and informed him that she tought the house was worth 50K more than asking price and didn't think her clients would accept. She also wanted to know the terms of my loan, how much down and what my interest rate is. My agent told her that my financial info was personal and all she needed to know was that I was approved for the purchase price and that she was to submit the offer as is.

I recieved a call from my mortgage broker this morning at 10:00. She wanted to let me know that the sellers agent called her and asked her to anwser the following questions, 1) What is the down payment 2) What is the interest rate.3) Can they afford to pay closing costs because my clients will not pay them. 4) What is the maximum monthly payment they can afford. She also told her that the house was worth 50K higher than asking priceand we would need to raise our offer if we wanted the house.

As of 10:30 this morning sellers agent has yet to present my offer. I have just recently relocated to Portland and I'm not sure who I can file a formal complaint with and would appreciate any help.

[tiffela74]

I dont know who you could call, except maybe another real estate company? Tell them whats happened, and maybe someone there can tell you where to go from there. Sorry i cant be of more help...im kinda lost on this kind of stuff!! Best of luck to you though,
Tiffany

[freedom]

Originally Posted by theschmouse

I'm dealing with a bad sellers agent. Here's my story: I placed a full price offer with an approval letter from my bank through my agent. He faxed the offer to the sellers agent last night at 6:00. The agent called him and informed him that she tought the house was worth 50K more than asking price and didn't think her clients would accept. She also wanted to know the terms of my loan, how much down and what my interest rate is. My agent told her that my financial info was personal and all she needed to know was that I was approved for the purchase price and that she was to submit the offer as is.

I recieved a call from my mortgage broker this morning at 10:00. She wanted to let me know that the sellers agent called her and asked her to anwser the following questions, 1) What is the down payment 2) What is the interest rate.3) Can they afford to pay closing costs because my clients will not pay them. 4) What is the maximum monthly payment they can afford. She also told her that the house was worth 50K higher than asking priceand we would need to raise our offer if we wanted the house.

As of 10:30 this morning sellers agent has yet to present my offer. I have just recently relocated to Portland and I'm not sure who I can file a formal complaint with and would appreciate any help.

If the broker works for a Real Estate agency and is not free lance, I would go directly to their boss, I would not invovle your agent, as things can get corrupt when agents collude together for some cause you are unaware. It could even be that the agent is waiting to low ball their client or have another customer interested that wants it at a lower price, when the agent represents to the owner that no offers have come in.
The sellers agent is breaking so many laws, they need to be punished. An agent has to by law present ANY offer to their client, regardless of what it is.
I smell a big stinky rat on this one......
The is the State licensing board.
http://http://www.oregon.gov/REA/complaint.shtml (broken link)

[CHEWY12]

I will assume that your agent put a time limit clause in your offer as most do,24 or 48 hrs is common. Let the offer expire and run as fast as you can from this deal. Also why in the heck did you put a full price offer on this house in this downward market. You need a better buyers agent that will look out for you. I think both agents are getting ready to fleece you. If it was me I would offer way less than asking and let the seller counter offer back. I also smell a very big stinky rat here. RUN AWAY AS FAST AS YOU CAN.

[DavePautsch]

Some things to consider:
It is not unusual for the information that was requested to be included in an offer. This information is one way in which seller's agents can help their clients distinguish between competing offers.
In the standard real estate Earnest Money Agreement (OREF Form) there are line items FOR downpayment and specifics on the financing (where the loan will be coming from, a copy of a pre-approval, "cash upon closing of a conventional loan...").
Some of the questions that were asked were quite unusual in my opinion (interest rates, other loan terms, etc...) although not in and of themselves "unethical."
The other thing that isn't clear to me is what the seller has told their agent. Remember that the agent is bound to carry out the desires of the seller. If the seller has told their agent to ASK those questions to help them evaluate an offer, again, it's not unethical or illegal to do so.
The seller's agent is required by law to present any offer in a timely manner. There is no specific time period designated however. Are the seller's in town? Have they been communicating with their agent by phone...how do you KNOW that the offer hasn't been presented yet?

The one thing that DOES concern me is the issue of the "50K more" valuation. IF the house is worth that much more, why didn't the agent LIST it at that price? Nothing says the seller has to accept any (even a full price) offer...but it really smells bad to me on this point. Again, UNLESS there IS another offer that the seller is considering...but even then, I would make any buyer aware that there was a competing offer and that if you want the home, make your "highest and best offer."

IF you think there is something really wrong going on, you can contact the Oregon Real Estate Agency (State of Oregon: Real Estate Agency (http://www.oregon.gov/rea/indes.shtml - broken link)) or the Principal Broker of the seller's agent. I would also spend some time talking with YOUR agent about it to get their perspective...and I disagree with freedom about involving your agent...if you like and trust them you SHOULD involve them. If you DON'T, you shouldn't be working with them anyway.

There is a lot that isn't clear in your description of the situation. Be careful of jumping too quickly to conclusions.

As to the issue of making a full price offer, you can't make a blind assumption to ALWAYS throw a low-ball offer. True enough that in today's market there is often a LOT of room for negotiation...but if this is the house you want, in the neighborhood you want, and the price they are asking is reasonable (based on your Agent's Buyer's Market Analysis)...you COULD be dealing with multiple offers...in which case anything less might cost you the house.

Good luck...

Dave