Last week I posted about a house with a mold problem. The house was listed
as "Active and Available". I contacted my agent to arrange a viewing,
although I have significant interest just by looking at the different
pictures and a drive by, the price is very reasonable too.
My agent was trying to contact the LA, and the LA said he is busy and can't
show it until a few days later. After a few days, no call back, and when
contacted says have to wait over the weekend. When we finally called over
the weekend, the LA said the property has a serious mold problem and will
cost like $20000 to fix, that the house was already sold but the buyer
backed out because of the mold problem. We were a little shocked and
thought about backing away, but then I thought I still want to see it and if
it's just replacing drywalls and carpets it's not such a big deal. I had my
agent called again and this time, the agent said the property has just been
sold, the seller reduced the price and the original buyer will be getting
the house. Oh well we will have to move on. Today my agent called me and
told me she found out the "buyer" of this house IS THE Listing Agent and
that he is
planning to sell as soon as it closes (told my agent he will be happy to
show it to us as soon as it closes in December). Isn't this a conflict of
interest? How can the LA recommend a price and then buy the property
himself (probably at a discount?) then get an inspection that reveals
serious mold problem to get the seller to lower the price, and even back off
on the contract to put it on the market again to pressure the seller,
knowing all this time he can block or discourage other interested parties
without the knowledge of the seller, and finally getting a price reduction,
and then probably his own commission, with the intention to flip? If he
thinks he can flip right the way, and make a profit, doesn't it mean the
seller is pricing it low, and shouldn't he be expected to inform/advise the
seller what the fair market value is? I am just real pissed off to run into
shady deals like this. Any advise? Should I just move on or is there a
way to still get this house given the situation?
State is Florida. Not sure if this is against the rules or just unethical?
Basically the same thing happened to me here in Ohio on three occasions with
homes that we wanted to purchase. You might as well move on because the
bottom line is someone else got it and you diddn't. The time and cost
associated to make it right to settle "principle" of this deal is something
that you have to decide if it is worth messing with.
From my daughters experience: IF they have the moral principles to do that,
they have the moral principles to lie. IF you chose to file a complaint just
have an airtight case because they wil lie lie lie. And they will have the
paid witnesses to prove they are right. Sometimes its just best to treat it
as a learning experience and move on.
What I am wondering is, is there may be a mechanism I can propose to the
agent to "buy" his contract?
He is not planning to keep the property, we know that.
It appears he is not planning to remodel it then sell it at a much higher
price, we know that too.
Interest rate will go up further by December, very likely.
He may have to wait a while to sell it, if market cools off.
He has to pay closing cost and fees for this transaction.
So, it seems like, for the right "profit" he should be receptive to transfer
the contract to me instead...but I don't know if there is such a thing, my
wife REALLY likes this house and I want to do everything possible to get it
for her, including dealing with this creep (I will deflat his tires later
LOL). But how would one go about structuring something like that? Any
This kind of stuff seems so common and it's sad that we don't think
it's a big deal. Find the seller and tell the seller. Call the local
real estate governing body to get more info. Talk to a lawyer who
does litigation specifically in the area of real estate and try to
get some insight.
The agent stole from you, your time, energy and right to trust others
in business. The agent in essence stole from the seller what amounts
to several thousand dollars. If you steal a can of food cause you're
hungry or worse have a drug addiction you get handcuffed and likely
serve time. But if you wear a suit and tie and steal thousands, it is
This probably happens more often than we know.
I had 2 apartment buildings. One was ready to show. I was still
sprucing up the other one. Listed the first one with an agent who
belonged to my wife's sewing club. She didn't put a sign out front.
(Don't want to alarm the residents, you know) One small three-day ad
in the paper. Rocks on for about a month. She has had only one
enquiry. Finally got an offer from them for 10 percent less than our
asking price. We decided we would accept that if there was no more
interest by a certain date..
On that date, I was working at the other building next door. An agent
stopped and asked if I knew who owned the building next door. When I
told him I did, he said he had called the listing agent numerous times
and no on would return his calls.
Within an hour, I had called my attorney, canceled the acceptance of
the other offer and sold it for asking price. I later sold him the
other building as well.
It turns out, the only "interested party" was her son. She made more
commission on that building because I sold it for more but she didn't
make a nickel on the other one.
I wanted to nail her hide to the wall but my wife preferred not to.
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