new type of real estate fraud?

[sdduuuude]

It’s not such a new type of fraud. My parents sold a house in Tucson, AZ in 2005. They interviewed three real-estate agents.

Two suggested listing prices of $375,000 and $400,000. The third suggested a listing price of $599,000. We looked carefully at comps and thought $575 – $650,000 so they used the third agent just because the others seemed out-of-touch.

The house sold for $595,000 the first week.

Looking back we suspect those agents were attempting to buy the house for themselves or sell to an associate prior to listing. Indeed, one of them stood in the yard and proclaimed “this is a million dollar view” prior to suggesting the $375,000 price tag.

[jmpman]

By that same logic, if you were a realtor representing an individual, and your brother made a higher offer, don’t you have an obligation to disclose the lower offer to your client? I see no difference between a lending institution and an individual when it comes to the realtor’s ethical obligation.

[jmpman]

By that same logic, if you were a realtor representing an individual, and your brother made a higher offer, don’t you have an obligation to disclose the lower offer to your client? I see no difference between a lending institution and an individual when it comes to the realtor’s ethical obligation.

[jmpman]

By that same logic, if you were a realtor representing an individual, and your brother made a higher offer, don’t you have an obligation to disclose the lower offer to your client? I see no difference between a lending institution and an individual when it comes to the realtor’s ethical obligation.

[jmpman]

By that same logic, if you were a realtor representing an individual, and your brother made a higher offer, don’t you have an obligation to disclose the lower offer to your client? I see no difference between a lending institution and an individual when it comes to the realtor’s ethical obligation.

[jmpman]

By that same logic, if you were a realtor representing an individual, and your brother made a higher offer, don’t you have an obligation to disclose the lower offer to your client? I see no difference between a lending institution and an individual when it comes to the realtor’s ethical obligation.

[urbanrealtor]

[quote=jmpman]I see no difference between a lending institution and an individual when it comes to the realtor’s ethical obligation.[/quote]

Correct.
The difference is who the client is.
While we have different duties, our fiduciary relationship is somewhat similar to that between a lawyer and their client. If I have an explicit relationship with a bank, then I will represent their interests vexatiously. This is part of the reason, I don’t like to “double end” deals. Representing both sides splits loyalties. Extra money is no compensation for having clients who think you are cheating them.

Similarly, the bank has to give approval but is very much not my client. They don’t pay me and they can’t fire me. Generally, larger offers are irrelevant if the seller has already accepted one. I will always disclose that to the seller but the seller makes the final call on sending them to the lender. The lender usually has a number they want to see on the contract and they will insist before accepting the short sale. I have even mentioned higher offers and had the bank’s rep say that he was not interested in offers that had not yet been approved by the investment committee. I think for them, as long as they get the ends they want, the uncertainty of a new offer is more costly than a known, approved quantity. I think this is due to the volume of these happening every day.

Again this is my opinion based on lots of experience.

[urbanrealtor]

[quote=jmpman]I see no difference between a lending institution and an individual when it comes to the realtor’s ethical obligation.[/quote]

Correct.
The difference is who the client is.
While we have different duties, our fiduciary relationship is somewhat similar to that between a lawyer and their client. If I have an explicit relationship with a bank, then I will represent their interests vexatiously. This is part of the reason, I don’t like to “double end” deals. Representing both sides splits loyalties. Extra money is no compensation for having clients who think you are cheating them.

Similarly, the bank has to give approval but is very much not my client. They don’t pay me and they can’t fire me. Generally, larger offers are irrelevant if the seller has already accepted one. I will always disclose that to the seller but the seller makes the final call on sending them to the lender. The lender usually has a number they want to see on the contract and they will insist before accepting the short sale. I have even mentioned higher offers and had the bank’s rep say that he was not interested in offers that had not yet been approved by the investment committee. I think for them, as long as they get the ends they want, the uncertainty of a new offer is more costly than a known, approved quantity. I think this is due to the volume of these happening every day.

Again this is my opinion based on lots of experience.

[urbanrealtor]

[quote=jmpman]I see no difference between a lending institution and an individual when it comes to the realtor’s ethical obligation.[/quote]

Correct.
The difference is who the client is.
While we have different duties, our fiduciary relationship is somewhat similar to that between a lawyer and their client. If I have an explicit relationship with a bank, then I will represent their interests vexatiously. This is part of the reason, I don’t like to “double end” deals. Representing both sides splits loyalties. Extra money is no compensation for having clients who think you are cheating them.

Similarly, the bank has to give approval but is very much not my client. They don’t pay me and they can’t fire me. Generally, larger offers are irrelevant if the seller has already accepted one. I will always disclose that to the seller but the seller makes the final call on sending them to the lender. The lender usually has a number they want to see on the contract and they will insist before accepting the short sale. I have even mentioned higher offers and had the bank’s rep say that he was not interested in offers that had not yet been approved by the investment committee. I think for them, as long as they get the ends they want, the uncertainty of a new offer is more costly than a known, approved quantity. I think this is due to the volume of these happening every day.

Again this is my opinion based on lots of experience.

[urbanrealtor]

[quote=jmpman]I see no difference between a lending institution and an individual when it comes to the realtor’s ethical obligation.[/quote]

Correct.
The difference is who the client is.
While we have different duties, our fiduciary relationship is somewhat similar to that between a lawyer and their client. If I have an explicit relationship with a bank, then I will represent their interests vexatiously. This is part of the reason, I don’t like to “double end” deals. Representing both sides splits loyalties. Extra money is no compensation for having clients who think you are cheating them.

Similarly, the bank has to give approval but is very much not my client. They don’t pay me and they can’t fire me. Generally, larger offers are irrelevant if the seller has already accepted one. I will always disclose that to the seller but the seller makes the final call on sending them to the lender. The lender usually has a number they want to see on the contract and they will insist before accepting the short sale. I have even mentioned higher offers and had the bank’s rep say that he was not interested in offers that had not yet been approved by the investment committee. I think for them, as long as they get the ends they want, the uncertainty of a new offer is more costly than a known, approved quantity. I think this is due to the volume of these happening every day.

Again this is my opinion based on lots of experience.

[urbanrealtor]

[quote=jmpman]I see no difference between a lending institution and an individual when it comes to the realtor’s ethical obligation.[/quote]

Correct.
The difference is who the client is.
While we have different duties, our fiduciary relationship is somewhat similar to that between a lawyer and their client. If I have an explicit relationship with a bank, then I will represent their interests vexatiously. This is part of the reason, I don’t like to “double end” deals. Representing both sides splits loyalties. Extra money is no compensation for having clients who think you are cheating them.

Similarly, the bank has to give approval but is very much not my client. They don’t pay me and they can’t fire me. Generally, larger offers are irrelevant if the seller has already accepted one. I will always disclose that to the seller but the seller makes the final call on sending them to the lender. The lender usually has a number they want to see on the contract and they will insist before accepting the short sale. I have even mentioned higher offers and had the bank’s rep say that he was not interested in offers that had not yet been approved by the investment committee. I think for them, as long as they get the ends they want, the uncertainty of a new offer is more costly than a known, approved quantity. I think this is due to the volume of these happening every day.

Again this is my opinion based on lots of experience.

[scaredyclassic]

what if you told the agent, look, get my lowball short sale offer through, and I’ll give you an envelope with $10,000 in small unmarked bills after the transaction? is that kosher?

[scaredyclassic]

what if you told the agent, look, get my lowball short sale offer through, and I’ll give you an envelope with $10,000 in small unmarked bills after the transaction? is that kosher?

[scaredyclassic]

what if you told the agent, look, get my lowball short sale offer through, and I’ll give you an envelope with $10,000 in small unmarked bills after the transaction? is that kosher?

[scaredyclassic]

what if you told the agent, look, get my lowball short sale offer through, and I’ll give you an envelope with $10,000 in small unmarked bills after the transaction? is that kosher?

[Author]

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