I thought I would share an experience happening this week with another Realtor that I have had several conversations with regarding to separate properties.
Two Backup Offers with the Same Realtor
My clients have been interested in two properties that this Realtor has listed that both went under contract. The first was one we bid on but lost it to the highest offer (there were apparently 29 offers). The second if I recall correctly, went under contract as we were looking at it. It was just coincidence that two they liked were being handled by the same person.
My clients put in backup offers on both properties though at different times. As you can imagine with the offers, the fact that my clients have two offers in is fully disclosed - their names are all over both documents.
When these offers were sent, I actually emailed later to confirm that the other Realtor had received them as backups. The Realtor responded and I will paraphase…”Yes, I received them and will give you a call if either deal falls out.”
“Back on the Market” - No Reponse
Here’s the sad aspect. The second property came back on the market several days ago. My clients came across it in when the search I created for them called it out again. I didn’t receive any phone call or email contact whatsoever explaining that the previous contract fell apart and that there was an opportunity to step in. As well, the home went back under contract a couple days later. Given that the property went back on the market only to jump off again tells me that any other existing higher backup offer wouldn’t given the proper treatment either.
I had left a couple of messages for the Realtor regarding the two properties without bringing up the issue of the backup offer for either one of them as a way to gently jog their memory as to who I am and that I had submitted offers before. I thought she would recognize my name given I have had no less than 4-5 conversations with the Realtor. It took two voicemails before I got a response.
This person called me back a full day later and explained the latest status with the two properties. There was no mention of my backup offers for either property, just mention of a separate cash offer for the first one. In effect, this person has completely failed to associate the offers with her clients’ properties.
Fiduciary Breached
As such, I see this as a breach of fiduciary to the Realtor’s clients. It is absolutely in the clients’ interests to pursue a backup offer unless specifically told not to do so by the Seller. As well, to have a backup offer waiting in the wings and not take any action, especially given that the property is a short sale is a tremendous gaffe.
Now, let me acknowledge that I don’t have the signed copies back. So, one could argue that I don’t have a backup offer. However, what I have is the acknowledgement of receipt though you can imagine that I am wondering if the offers ever made it to the Sellers for review.
I will be talking with the Realtor later today. My clients decided not to move on the second property anyway here. They still want their backup in on the first property. I imagine it won’t be a pleasant conversation as I have to make clear how this should have been handled and what I expect going forward. I’m not looking to file a formal complaint but resolve it amicably between two Realtors and move forward.
It’s a Higher Level of Professionalism
There are a lot of professionals like myself who strive to give clients and their transactions the serious attention they deserve. Purchasing a home is not a small transaction - it is a huge one. I don’t treat it like going to the grocery store or going to Target. I also don’t treat it like it was buying a new car. A car is much cheaper than a house and though you can sell your car again if you aren’t happy about it. You can’t easily do the same with a home.
This is a serious business with serious potential issues for each transaction and I strive to deliver excellence and a solid commitment to my fiduciary responsibility to clients. Though I have to remind myself that others won’t do the same, am I wrong to assume that they should?
I don’t believe so.
Email this Post
{ 2 comments… read them below or add one }
What’s she doing taking 29 offers on a short sale anyway? Is she saying that each subsequent offer was better than the last? And will your back up offer be in second position or in 29th?
I think you have a right to ask for page 9 to be initialed by the seller as rejected (line 392). I think you should also bring it to the attention of her broker. Especially, since your client has an interest in property #1.
I had an agent tell me that it was unethical to disclose offers on a short sale. He forgot his ethics when we put an offer in. Immediately he called me and told me our offer was too low, that he had several at fullprice. Why didn’t he tell me that to begin with?
Anyway, good post. I enjoyed reading it.
Pat Monahan´s last blog post..New MLS Rule Regarding Photos
The 29 offers came in because the property was initially priced very low. We came in later with a backup offer after the selection occurred about a week or two later. Frustrating to say the least.
As for your incident, I totally agree. It would be so easy to just communicate with the seller’s permission what a prospective buyer should know so that no one is wasting their time. I don’t like to get a buyer or seller revved up needlessly.