[quote=sfexporter][quote=sdrealtor]niy,
that one is a very underpriced short sale lisitng. the agent put it under contract with his own buyer and appears to be trying to slip it past the lender. Shall we say this is of questionable ethiics?[/quote]
sdrealtor,
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? Do you see this often during short sale or normal RE transactions? If yes, what are the disciplinary fines/penalties for the listing brokers?
If this type of shitty or unethical tactics do happen, I hope the fed would intervene to clean it up. [/quote]
Maybe I am misreading this but it does not sound like its unethical dealing.
1: I am not clear that the offer the LA is working is his own buyer. Perhaps you have inside knowledge?
2: It is standard to price shorts super low to attract offers and then leave them active until written lender approval. This is permitted per the MLS. The mandatory remarks (which are not visible in public mls portals ) indicate that he is working an offer with tentative seller acceptance.
3: As an agent who lists short sales, I consider it unlikely to point of implausibility that any deal gets “slipped by” the bank.
So SD, I don’t see the ethical lapse here. I am not saying it does not exist but could you show me what you are seeing?
Sfexport: If a property is a shortsale, the listing price is almost irrelevant. Being 50k over or 50k under does not mean a deal. The bank has to approve everything and the seller does not care because he is getting nothing either way.
Putting that differently, the incentive structure is completely fucked.
Also, regardless if a deal is already working, and regardless of what the listing status is, the agent has to make the seller aware of it but the seller (usually based on the listing agent’s advice) will decide which offers go to the lender.
Finally, nobody with any brains makes an offer with no contingencies. The notable exception being trustee auctions, and we see the lack of information and safety clauses reflected in the prices there (often 20-30% below market).
