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Just curious if a multiple bid situation could be created by unscrupulous listing & buyers agents who were working in cahoots, so to speak.
Evidence:
I think it is likely that our buyer's agent leaked some of the counters which I had been discussing, but never authorized him to provide to the listing agent, who is a close associate in the same office.
Why? Because it somehow magically came back to me as a counter, in the exact split between furniture and escrow amount which we had been discussing with the agent as an option but never submitted to the seller's agent.
Plus our agent texted me the following 3 comments, when we were very much in "window shopping" mode with these text msgs:
1) "The listing agent called to say that his seller rcvd an offer but it was too low."
2) When I asked if he had "intuition" on what they offered, he texted back "he heard it was around $X".
3) A few hours later that day, I texted if he knew about another comp down the block unearthed by me via Zillow but not on the guest-MLS as a sold property, he texted back, "No, but on the property we're looking at, I spoke with the selling agent and he said he thought that $Y would be the seller's bottom line price".
This info was not given by saying "The seller authorized his own agent to reveal this info".
Plus shortly after we submitted our own last counter before accepting the seller's final counter the next day, our agent wrote back somewhat dryly via email "FYI. Now there's a 3rd bidder. That's what happens when one takes too long to reply". Lots of bidders appearing in a town which is fairly flat and slow moving. This is not the Bay Area.
And lastly, our agent encouraged us to use his own appraiser and home inspector, without asking us if we wanted such names from him, or to offer a list of such professionals. This surprised me too and led me to believe that his interests were being put above ours.
Still, I know enough of the market and the comps to suggest that at most we're $20K too high (about 5% above market), and probably more like $15K too high. I'm having it appraised on my own dime (this is a cash deal) but another agent in the market told me that the appraisals have a strong tendency to come in very close to the contract price, so don't be shocked if that happens.
My inclination is to let sleeping dogs lie and just let this go, and simply not recommend our agent down the road. This seems best for our mental health and we're not marrying these agents after all. The home and property are both beautiful - no doubt about that. Will $15K make a difference five years from now. Not really.
But we're also not desperate for the property and the town is more of a buyer's market than a seller's one - or even at best. We really plan to rent it for the first year or more in which we own it, because we can't move there till that time.
Any thoughts are appreciated. I know that it would be unwise to publicly share any of the above concerns with my agent as I can't really prove it. So I won't. It might say more about me than about the agents after all. I'm old enough to know that.
But we're still in the review period. Inspection is next week. I could simply cancel and possibly renegotiate the deal, but it would likely come across as arbitrary if the appraisal doesn't support this.
You've posted these same questions and concerns several times. Answers will not change.
What this does indicate to me is some serious doubts about the purchase and the future move. Either accept it for what it is or move on. Mentally grinding on it is not useful.
I think we'll move ahead with this deal regardless. We're not marrying the realtor. The home is terrific. Nothing changes that.
I guess I was just curious if professionals have ever heard of a listing agent and buying agent inventing a multiple bid situation where there was truly none, to prod a possible buyer into quicker action. In the abstract.
Hopefully not, as it would reflect poorly on the whole profession and I know that the vast majority of realtors are 100% professionals.
I think we'll move ahead with this deal regardless. We're not marrying the realtor. The home is terrific. Nothing changes that.
I guess I was just curious if professionals have ever heard of a listing agent and buying agent inventing a multiple bid situation where there was truly none, to prod a possible buyer into quicker action. In the abstract.
Hopefully not, as it would reflect poorly on the whole profession and I know that the vast majority of realtors are 100% professionals.
There is too great a chance of running off a serious buyer with a game like this. I have been in many multiple offer situations and I've seen a good number of buyers withdraw their offer with "I'm not playing games." I doubt many agents with experience would take the chance. Limited reward, major risk.
I'm sure this unethical behavior occurring where a situation like this is possible but I would be for the most part it is rare. I think agents that would do something like this run the risk of buyer walking away and then not getting the deal. In all reality the take home money an agent receives is not that much different on certain percentages lower or higher so it seems like risky behavior on their part with the risk of losing license for a few bucks more on a deal
There is too great a chance of running off a serious buyer with a game like this. I have been in many multiple offer situations and I've seen a good number of buyers withdraw their offer with "I'm not playing games." I doubt many agents with experience would take the chance. Limited reward, major risk.
I agree.
However, there are a lot of goofballs in this world.
Suspicions aside, OP likes the house and is willing to pay the price.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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More often than "shady practices" the realtor sets the price lower than the comps, in the hope that it starts a bidding war. In a hot market like ours, that works, and it sells fast well over asking but also for more than the comps.
If the appraisal comes back lower, I may just use that to be hard nosed, as I know the market is not all that hot.
Else, will proceed with the purchase and chalk it up to learning the importance of shopping for a buyer's realtor where there's not even a question as to his/her integrity.
The short answer is yes of course it COULD. But you'll never know unless you put them under oath or can PROVE it. So move on.
A friend just bought a house and her agent was the LISTING agent for the house. I told her uh, no sweetie, that agent is the SELLERS agent, I don't care what you sign about understand dual representation, or what the ethics law is about what's SUPPOSE to happen with the agent is "representing both parties" -- . the truth is the listing agent's loyalty would swing to the seller.
Personally I want an agent that only reps me. I know that can't always happen, but that's what I'd prefer.
I don't like back and forth bid wars, whether they are real or not. I'm the type to just put in my highest bid - or tell my agent what it is, and be done with it. That's how I bid on Ebay, too. I put in my highest bid and walk away. If I get it, I get it, but if I keep watching it, I might get sucked into spending more than the limit I set for myself.
To do this, you have to let go of any need to feel like you got some great score. You know your top offer. If you get it for less, great. If the bids go higher, adios.
And unless you're talking about a bidding war that's over and above the asking price, heck, just give them the asking price (if it's your top figure) and be done with it.
Which is why I also like the "Buy it Now" feature on Ebay :-) Ha ha, suckers! It's mine! LOL
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