“Are you saying the listing broker does not have to show your offer to the bank even if your solid offer with little or no contingents is 50K more the one he or she submitted?”
That is an extreme example but this sort of stuff seems to be happening more and more. I have seen it not just with shorts but with REO sales as well. To me this is an extreme violation of the fiduciary obligation that a listing agent has. I have seen it take other forms, for instance for some properties that are priced aggressively as REO, the listing agent simply picks one offer and sends it in rather then countering everyone, (which may be a pain in the ass) but would yield a more competitive landscape and ultimately get the seller more money.
I had a recent client who submitted an all cash offer at list price for an reo with a 21 day escrow at list. The LA didn’t counter, didn’t call back and someone else got the property. My buyer was prepped to go up plenty more. When I asked the agent why they didn’t counter everyone at highest and best he even said, ” … well you know how it is, we are just trying to move properties as soon as we can so you should have submitted your highest and best offer off the bat. ” I commented that he had left money on the table for his client he said that my point was speculative at best.
So it goes…
Don’t expect the FDIC or any other entity to do anything about it. My client did send a letter to the lender selling the home but that will not do anything. A complaint to the DRE can be made and if you have a clearly documented case, like the example of a 50k differential above then yes some sort of disciplinary action would most likely be taken.
