Recently a agent showed me a house which was originally listed at the price of 840K and relisted after some time at the price of 790k. I decided to buy the house and asked the agent to write an offer. She said there must be another offer offering the same price as the listing price so we better give a offer of 800K. I agreed. The second day, the agent came to me said she talked to the listing agent and the listing agent told her he already got 2 offers. So she asked me to raise the offer to 820K. I trusted her and agreed and signed the offer letter. As expected my offer was soon accepted.

Oh, there were some detail I felt suspicious. at the time I signed the offer letter, she gave me the owner's disclosure package. I wondered where she got the package before an offer was made? I asked her where she got it and was told she got it from the listing agent.

After my office was accepted and an careful inspection of the disclosure and the house, I found the house has many problems. I felt my agent is not on my side, she only cares about the quick close of the deal so she can get her money, she gave me false information to boost the offer price so it could be accepted without doubt.

Here are my questions:

1) Dose a selling agent allow to contact the listing agent for info about bidders?

2) If I prove she lied to us (about her talking to the listing agent), can I sue her?

Your prompt help is greatly appreciated.

Have a nice day!

Eric

Eric,
At least in my area the seller disclosure's are readily available before an offer is even made.

The listing agent most likely called your agent for feedback after the showing and to say there were offers coming in on the property so if you wanted to make an offer to do it soon. Your agent upon learning this and being told you wanted to write an offer said if you really want this better make it 10K over list. You obviously agreed to this.

The sellers agent called back upon getting your offer telling your agent tthat there were already 2 offers on the property.

So whose Idea was the additional raise to 820K? Did your agent suggest that number or did the agent ask how badly you wanted the house? You obviously wanted the house cause you raised the offer to the 820K.

Did the disclosure list the problems or was it an inspection that found the problems? I find it strange that an agent would not mention unusual items listed on a disclosure because if a problem is known in advance it can be dealt with either with a repair ammendment of a price reduction. Did you notice these problems when you viewed the house? Did the inspector feel the sellers would have to have known of the issues? Exactly what false information did your agent give you?

Regarding 1. Not sure exactly what you are asking the way it is worded.
Regarding 2. Based on what you have said there is really no way you can prove your agent lied to you because it does not appear the agent did based on what you have said in your post.

Thank you Paul for the reply.

It was my agent who raised the offer to 820K one day after I agreed on 800K. It was unlikely that she really contact the listing agent to ask the number of bidders. I will ask the listing agent to find out.

There is major problem with the foundation. She didn't mention that to me before making the offer. Only when I read the disclosure package did I find the problem.

Eric

In my opinion, with a purchase of this magnatude, you should have read all of the disclosures before putting in an offer at all. I do not work with these high priced homes. I do agree the your agent should have told you to read the disclosures. But there is the saying
"Buyer Beware"

Eric,
Your agent cannot raise the offer, only you can do that as it is your offer! An agent can suggest an offer but in the end it is your decision. I never suggest an offer I always give my buyers the facts and let them decide how much they would like to offer. I will advise them if it is too low or too high and I use my CMA to show them the range.

Did your agent do a CMA on this property? If so what was the value and did you feel the comps were similiar?

Did you call your agent and ask why she failed to bring the foundation problem to your attention before you made your original offer? If not perhaps you should ask? If Yes what was her answer.

The listing agent is simply going to tell you to talk to your agent as you are not his client!

If your agent has not done the CMA, did not read the seller disclosures or worse failed to bring a major foundation problem to your attention before you made your original offer then perhaps you should speak with her broker because she is not fulfilling her duty to you.

Hi All

Thank you all for the great info.

The fact is my agent didn't give me CMA before we signed the offer. During the meeting when she asked me to sign the offer she already prepared, she bring the disclosure package to me and said "just initial the index page, and after you sign the offer you have plenty time reading the whole package."

I have not asked why she failed to bring the foundation issue to my attention.

did your agent put in a contigency of the accepted contract based on what the insoection revealed?If not that should have been in there so that upon your findings you could either renegotiate the purchase price or terminate the contract.

I would like to ask. Before you signed the offer/counter-offer. Didn't she/he have the offering price before you sign, so that you could see the what you/agent was submitting to the other side?

What I don't understand is why your agent didn't include a provision in the contract to see any competing benchmark offers to prove in fact you weren't being duped into paying more?

Why was there no escalator clause in the contract that allowed you to pay a certain number over the next highest offer. I mean, any listing agent can say what they want. Your agent should probably have done more than just BELIEVE what the listing agent said, just to get more money out of you.

Ask your agent why there was no provision in the contract stating that you wanted the right to see the next highest benchmark offer considering how much more the asking price got bumped.

It's rather too late in the day, I'm afraid, but I'm willing to bet that your agent was a sub-agent (i.e. working for the seller) rather than a Buyer Agent (i.e. working for you).
Our industry has a somewhat tarnished public reputation and small wonder when this kind of ill service is inflicted on an all too unsuspecting buyer.
You have a right to complain to the local real estate board, but the likelihood of some appropriate recompense isn't, I suspect, going to be too high.
However, given the amount of money you're talking, it might do no harm to consult with a lawyer, if only to see if he can put the fear of God into the agent and her broker. In my view, it's the very least she deserves!

Duncan

You can sue anybody you want as far as your chances to win or if you have legitimate cause you must consult an attorney .I do not think there are any here qualified to give you that advice.If I gave you legal advice ?You could probably sue me so I dare not even indicate any legal expertise.And as far as this post it means absolutly nothing and has acomplished just that.Nothing....

{In my view, it's the very least she deserves!}Ouch !!!! Duncan How can you say that you only have heard one side of it?
Quote ( But there is the saying
"Buyer Beware")Yes there is but as realtors we are held to a certain Standard of treating all parties fairly and honestly and full disclosure.However the public does need to read and ask questions as far as who is representing.I expect one day there will be a requirment for agents to read out loud a miranda style info packet explaining buyer agency and the option and the possible consequences of opting out and self representatation.As if we dont have enough regulations .But this may be a necessary one in the future.As to if it will work or not who knows.

-Some agents just plain dont know how to negotiate, period! and buyers need to be aware that you have the option of saying let's stick to the original offer price and see what comes out of it. a good agent will get in contact with the Listing Agent and negotiate on behalf of the clients to possibly try to get the home they want.
let the listing agent Counter your offer.
(from EXP, if they have less than 5 offers, they will most likely counter you, I have had offers which had like 50 other offers in which case maybe the 10 best offer will be countered.)

-communication between listing and the possible
selling agent is key to a successfull transaction.
this avoid problems..

1. Yes possible selling agent can asked how many offers the seller had received
2. How can you proved that your agent lied to you if you signed the contract? I am not a lawyer but I can pretty much say the judge will say, " isn't this your signature?" in court..
Read and ask question before you signed anything to avoid complication. if you dont understand, get third party opinion or take someone with you who may understand the ever getting complicated RE contracts.

My best bet is that you and your agent just communicated poorly.

When I find out that there are multiple offers coming in on a property that my Buyers want, then I let them make the decision on how much they want to offer. If they want to purchase it for more than the listing price then they need to decide how much more. Also, I tell them.. if it is meant to be then it will work in your favor. If not, then there are other homes out there that would be better for you.

Thank you guys for reply.

I think you guys are honest.