Home Buying in Chattanooga>Question Details

ChattZ, Home Owner in Chattanooga, TN

Agent buys house you're interested in

Asked by ChattZ, Chattanooga, TN Wed Feb 5, 2014

Is it unethical for your agent to buy a house that you're interested in? Our agent showed us a house and it was one of our top choices. He then made an offer on it and bought it. Obviously he has a right to buy any house he wants, but this seems somewhat sketchy to me. Is it?

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As you stated, you agent has the right to buy any home they want. Unless you had asked them to submit and offer on it for you, I'm not sure you could call it unethical. Interested in and making an offer on are two different things. Had they waited until you 100% passed on it, they could have missed out on it too.
1 vote Thank Flag Link Wed Feb 5, 2014
In my mind were missing too much info to decide either way. For instance, if the client finds a home on their own they want to see, and when you, the agent, sees it and wants it, you've basically profited off the client's work. But if you're an agent and show people homes and they don't commit, the seller wants to sell...to whomever.
Flag Sat Feb 22, 2014
WOW! I don't know if it's unethical but it sure doesn't sound professional on the surface. Assuming the situation happened just as you presented it at the very least the agent should have asked you if you intended to make an offer. If you were under a Buyer's Rep Agreement with that agent I think it would be unethical but that's just my opinion.
1 vote Thank Flag Link Wed Feb 5, 2014
We are under a buyer's rep agreement, unfortunately, and it was the lack of communication about it that bothered me the most. Regardless of whether it's unethical, it's definitely not a good way to run a business, as I certainly wouldn't recommend him as an agent! thanks for the feedback.
Flag Thu Feb 6, 2014
Depending on all the circumstances surrounding the situation, a REALTOR (yes there is a difference in a REALTOR and a real estate licensee) does have a Code of Ethics to abide by. here is Article 5 of the National Association of REALTORS Code of Ethics:

Article 5
REALTORS® shall not undertake to provide professional services concerning a property or its value where they have a present or contemplated interest unless such interest is specifically disclosed to all affected parties.
0 votes Thank Flag Link Thu Feb 27, 2014
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