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Jonathon Mye…, Home Buyer in 48009

Can a listing agent place an offer on a house that he or she is listing?

Asked by Jonathon Myers, 48009 Thu May 14, 2009

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The other issue with this type of situation is when the seller begins to ask him/herself whether the agent was helping them price the home in the seller's best interests or the agent's best interest, and if a fiduciary responsibility brought about by an Agency relationship has been violated. In truth, sellers price the home, but usually with knowledge and advice from their agent.

It is very rarely a good idea for a listing agent to place an offer on a property they have listed in NYS, as it opens them up to a TON of liability. I would never do it myself.
1 vote Thank Flag Link Tue Jul 7, 2009
Of course, there is a conflict of interest, but there is nothing prohibiting it. I fall in love with at least one of my listings every year and contemplate buying. Never have though, and I would have my broker or someone else I trust represent the seller if I were going to buy one of my own listings.
Web Reference: http://mibirmingham.com
1 vote Thank Flag Link Tue Jun 30, 2009
The listing agent can place an offer on a house that he or she is listing and it is not un-ethical to do so as long as the agent:

1. Discloses the facts to the seller (That he/she has the intention to buy the property)
2. Markets the property in a fair way to and publicly where it's available to other buyers (If that's the sellers wish)

The only grey line is where there is another offer on table and the listing agent really wants the property! Then they can just go a bit over the highest offer and conclude the transaction in their own favor. This situation is inevitable and seems unfair but it can happen and it is not against law.

If I find myself in this situation, considering my fiduciary duties as an agent towards my seller and my ethical standards I will ask the buyers agent to present the offer to the sellers him/her self. This way both offers get a fair option to be looked at and the seller as well as other buyer get a better feelings of all parties clear intentions. Ultimately the seller is the one that makes the decision and if they want they still can work the deal in favor of the listing agent.
0 votes Thank Flag Link Tue Jul 7, 2009
Any agent licensed in the particular state where the home is located can submit an offer on a listed home. A listing agent has a duty to forward all offers to his seller until the seller has accepted an offer. Therefore, the listing agent can place an offer on the home so long as all other offers are provided to the seller. If the agent is trying to buy the home directly from the seller, the Code requires that it be for the listed price.
0 votes Thank Flag Link Tue Jul 7, 2009
I'm sure like most seller's right now, they won't care who brings them an offer as long as the money is green : )

As said, creates a bit of an agency dilemma, but as long as seller is ok with it, you're good.
0 votes Thank Flag Link Wed Jul 1, 2009
Although a slippery slope it is, yes that is often a possibility. However, most banks do forbid that their REO listing agents do that for obvious reasons.
Web Reference: http://DoorToDreams.com
0 votes Thank Flag Link Thu May 14, 2009
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