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We are going to be putting in a bid on a house tomorrow (our first offer ever on a house ). The house was previously under attorney review and the deal fell apart because of a few things on the inspection. We are aware of the issues on the report and none of them are a deal breaker.
My question is this - We asked our broker what the other bid was and he told us he knows but legally he is not allowed to tell us (we are in NJ). That seems odd to me, and I was actually wondering if it is true or not, or if it's more of an honor code amongst brokers.
Put the offer that you think is right for you, apparently, the home shows well and you think it's a good value. We are not supposed to tell the details of another offer to a potential buyer, this may give you an advantage over another offer. ( Not ethical ) Each offer has it's own twist, so even if the price is higher it may not be as strong as another offer.
hobo, is he YOUR agent, or does he represent the seller? because, legally and ethically, if he represents you, he has a fiduciary responsibility to YOU and not the seller and should absolutely tell you what the other deal was if he knows. BUT if he represents the seller, he absolutely should not tell you, as his fiduciary responsibility is to the seller, his client.
How would he know what the other offer is unless he is working for the seller?
Agents don't just give that kind of information to other agents for so many reasons.
Did he do a good CMA (comparative market analysis) for you, or show you the tax record to let you know how much the current owner purchased for, and what kind of mortgage they are holding? If not, ask.
Also, if he is representing the seller, did you sign a dual agency agreement?
He may have represented buyer number 1 who made the original offer. He may have facts that buyer number 1 is still going to try and purchase the house.
He would still have a duty to buyer number 1 to not reveal his offer.
then he isn't representing buyer number 2. I stand by my statement that if this agent is fully representing buyer 2, and has information that is important to the deal, they have a fiduciary duty to disclose.
But as an agent, if you have had a relationship with another buyer and they ask you not to reveal something you still have a duty to the original buyer to not disclose that information.
A laywer would be in the same boat if they knew something from a previous client but was sworn to not disclose.
We are going to be putting in a bid on a house tomorrow (our first offer ever on a house ). The house was previously under attorney review and the deal fell apart because of a few things on the inspection. We are aware of the issues on the report and none of them are a deal breaker.
My question is this - We asked our broker what the other bid was and he told us he knows but legally he is not allowed to tell us (we are in NJ). That seems odd to me, and I was actually wondering if it is true or not, or if it's more of an honor code amongst brokers.
Anyone know? Thanks.
did you sign a buyer broker agreement with him/her.. one that binds his fiduciary responsibility to you adn makes YOU his client? If so, then he should give you that information (unless there are some sort of extenuating circumstances to how he obtain such information..for example , he had the buyers on teh other deal and at that time he was working for the sellers best interest).
If you didn't sign a contract binding him to you as YOUR agent.. then his fiduciary responsibility lies with the seller.. meaning he is obligated to get the best possible offer out of you for the seller in the sellers best interest.
Atleats that is the law regarding agency in NY.. I thing NJ is pretty similar.. but not certain.
He is not representing the seller. The house is listed by a completely different agency.
We were able to find the tax info online and he did do a CMA.
As far as I know he is not working with the person who made the original offer.
Just because he is not the listing agent does NOT mean he doesn't work for the sellers best interest! Actually EVERY AGENT regardless of wether they are the listing agent or if htey even met the homeowner works for the seller..
THE ONLY WAY THE AGENT DOESN'T REPRESENT THE SELLER IS IF YOU SIGNED A BUYERS BROKER AGREEMENT WITH HIM. Basically it's similar to a listing agreement between the buying party and an agent. THAT SHIFTS THE FIDUCIARY DUTIES OF THE AGENT TO THE BUYER!
IN NY you MUSt give a buyer an agency disclosure form that talks about all that at first substantive contact.. and we do it at the first handshake hello so that there is no misunderstandings. Not sure if that's what htey do in NJ..
Too many buyers don't understand it even after you explain it.. that's why I don't know why anyone buys a house without having an agent represent their best interest.. becaues then that agent can give you so much more information that helps you make the best decision possible.
and FYI.. the "buyer broker fee" comes out of the sale of the house just like the commission would anyway and doesn't and shouldn't cost you any additional money on top of what you are willing to pay for the house.
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). The house was previously under attorney review and the deal fell apart because of a few things on the inspection. We are aware of the issues on the report and none of them are a deal breaker.
