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Hi,
I'm a first time homebuyer with my fiancee. Her and I found a place we were really interested in and contacted the seller to see if we could take a look (she had it posted on isoldmyhouse.com). She then forwarded her selling agent's contact info because she recently got a agent because it was not selling.
To keep the story short, we looked at the place with the seller's agent, became interested and later that night, I went online to get pre-approved for a loan.
Talking to the loan officer, she suggested we get our own agent to work in our best interests. So after discussing, we decided it would be best. The loan officer hooked us up with an agent and afterwards we did all the necessary paper work to do an offer w/ a deposit.
The next day, the seller's agent contacts us directly and asks if it was us who put that offer in. Reluctant to say because we were told not to have contact with her, we said yes.
The seller countered the offer which was still a little high so we countered again. The very next day, the seller's agent again tells us that we should come back to her and leave our agent's high and dry. She says she pretty much can gaurantee getting the house for the price for what we want and possibly get a better mortgage rate.
Right now I feel completely confused about what to do. I have a feeling the seller's agent will prevent us from getting the house unless we go with her so she can get her $$$. Also since we signed a 6 month agreement with our agent, is it possible to break this with them?
Any advice would be greatly appreciated as you can probably tell this is stressful for a 1st time homebuy.
sorry about the book!!
P.S. - we liked the seller's agent and had trust in her, we just went with what the loan officer suggested.
Last edited by kdawg232; 07-13-2008 at 02:05 PM..
Reason: added more context
You cannot put your trust in the seller's agent when it comes to the seller's house. She is representing THEM and not you. She has an obligation to them, not you. If she contacts you again, I would tell her flat out, all communications need to go through your agent...who should be looking out for YOU, not them.
You should tell your agent what is going on. In my state (TN) it is illegal for the seller's agent to contact you directly. If you are unhappy with your current agent talk to the broker of the company and ask for another agent. They want to keep your business and will be glad to help you. I love to work as a buyer's agent and when I find out they are first time buyers (most are) I walk them through each and every step. It is a very scary and stressful time. If you signed a buyer's agreement (the agent was protecting themselves against something like this), the broker will likely let you out of it by asking you to use another agent in the company. The agent you signed with will usually get a referral fee from whomever the broker assigns you to. Always work with someone you are comfortable with and think you can trust. Do NOT be afraid to ask questions! That's part of a realtors job. By the way, in TN it is illegal for a loan officer to direct you to a specific agent.
The list agent might have a procuring cause case.
The buyer's new agent must realize this also since they wrote a contract without ever showing the property.
I don't think it has to do with the sellers agent trying to keep you from getting the house because you are not using her. I think it has to do with you being a little bit apart on price and because there is a second agent involved the list agent has less flexibility on what they can do with the commission.
On some of my listings if I am the list agent as well as the buyers agent I will reduce my commission to 4% from 6% if they are a little bit apart on price.
If there is a buyers agent involved I could not do this because there would not be enough commission to go around.
Once you told the listing agent that you had a buyer's agent, she should have stopped contacting you directly and gone through your buyer's agent. This is whether or not she thinks she thinks she has procuring cause - that should be taken up between her broker and the buyer's agent's broker.
She says she pretty much can gaurantee getting the house for the price for what we want and possibly get a better mortgage rate.
I wouldn't want the seller's agent representing me under NO terms...Her best interest is supposed to be with her clients not getting you a deal on the house she is selling..
To me she is wanting her FULL commission and does NOT have your interest at heart....Your buyer agent can recommend a better mortgage for you ...I would tell your agent exactly what she said to you..The seller agent showed her cards.... your agent can most likely get you the same deal now
I wonder what kind of referral fee that mortgage person got!
They can't get a referral fee unless they are a licensed real estate agent.
Anyway...the mortgage broker gave you good information. Have a separate agent represent your interests. In Oregon, it would also be illegal for the seller's agent to be contacting you directly. She isn't winning any points in my book for the actions you describe.
As for procuring cause...she is the listing agent and unless you agree to dual agency can only be that. At least that is how it is in Oregon. Anything you tell her, she can use against you in negotiations.
Tell YOUR agent that the listing agent is calling you. If she doesn't handle that, then you weren't referred to a good agent.
To keep the story short, we looked at the place with the seller's agent, became interested and later that night, I went online to get pre-approved for a loan.
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Procuring cause is defined legally and in the NAR Code of Ethics and Arbitration Manual as:
A broker will be regarded as the "procuring cause" of a sale, so as to be entitled to commission, if his efforts are the foundation on which the negotiations resulting in a sale are begun. A cause originating a series of events which, without break in their continuity, result in accomplishment of prime objective of the employment of the broker who is producing a purchaser ready, willing, and able to buy real estate on the owner's terms. Mohamed v. Robbins, 23 Ariz. App. 195, 531 p.2d 928, 930.
it's a fine line here, she (the selling agent) was the first to show the home, but not the first to put in an offer on the home, BUT they did show the home, the buyers agent wrote up the contract and delivered the offer - but as I read it didn't ever walk through the home with the potential buyers. I see everyones point here, the sellers agent, if she thought she had procuring cause, should have spoke up right away when the offer came in, not contacting the sellers, but to her broker first about the situation.......
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