I would be careful in this situation, for one be careful for the obvious reason as that looks indeed as it could be a conflict of interest. But I too would be careful about jumping to conclusions. You also need to know who the agent is actually representing here, there is a form you probably need to read that you should have signed with your offer called the agency form. I would recommend that you ask your agent about it. Any agent with any common sense should know better than to "beat" you out of the house with their offer should they make one. I will bet if you talk to them about it, you will find a reasonable soultion to the situation. That being said if you are lowballing or not being reasonable on your offer, and it does not get accepted, and anyone makes a better offer; that should be considered fair game even to the agent. But there should be a set of ground rules established in advance here. I do a good deal of investment property buying, and I have several investors as clients. I set the ground rules several years ago, and explain them to each of my buyer clients. I also make sure they understand if they have an interst in a property that I will not compete or even think about presenting and offer for 48 hours of showing them the property, but if they do not proceed after than then its fair game. But we can't do this if we do not communicate. I have watched more than a few properties that I would have loved to own go to my investors and everyday clients too, but that is good. That is part of the business, and that is my job to help them find the good deals. So again depending on the specifics if could be a conflict, but I almost am willing to bet talking to them will resolve any issues you may have, the agent should always have your interest first, it's called fiduciary responsibility, I bet they know that term....

The agent is putting himself in a situation that could cause him a lot of problems. An attorney teaching a GRI class I attended told all of us agents that anytime we make an offer on a house like that we should pay full price. Otherwise, the seller could come back and say the agent used their experience against them and file a complaint with the state's real estate commission. Sounds like he is indeed abusing his position and certainly not working in your best interest - unless he represents the seller and he's trying to raise the price.

Momin,

It is important to have accurate information and the best way to access it, in this case, is to go directly to the source. Ask the agent what his/her intentions are and express your concerns.

The result of this conversation will create the direction you need to take. Our recommendation, is if you feel there is a definite "conflict of interest" .....cut the agent loose and find another that can represent you in the manner you deserve being represented.

Good luck,
The "Eckler Team"

Ouch! I would say that is a huge conflict of interest... if you were in a negotiating war, the agent wins, since they know what you're bidding. The problem here is I am not sure there is anything that gives guidance on how to proceed here. Technically, one might be able to argue he is not violating ANYTHING by presenting his own offer. Our local buyer agency contracts specifically say we can present offers from other buyers on the same property, so long as we do not share any information about your offer. The agreement does not address your situation. Yuk.

Ok, so just ask your agent what the deal is. It may be that he likes the house but can't try to buy it for personal reasons anyway. I have house envy all the time in this job. Just have him say he won't make an offer on the house ~ have him say it in writing (an email would be OK), and then trust him. If he plans to make an offer, then talk to the managing broker in the office and get another agent assigned to you. At that point you are already at a disadvantage, as the agent already knows your buying power, and your ideal terms. Using that, he can easily negotiate the contract to his advantage. But, since you can't pull the information out of his head, I am not sure there's anything you can do. Assuming that at the time you established the relationship, neither of you knew this would happen, I don't think he did anything wrong. It would be a bit like your best friend falling in love with your girlfriend. Not his fault.

Best of luck - and let us know how this turns out.

Things that make you go "hmmmm...."