This doesn't sound like a "dual agency" issue... rather a "multiple offer" situation.

The listing agent's clients had an advantage over you, in that they knew there was another offer (and no incidentally... how much that offer was for, which is unethical, if not illegal).

You should have an opportunity to amend your offer, knowing now (as you do) that there is another offer on the table. And make sure that you make it your "highest and best" offer.. knowing that you're going to be competing with another offer.

You could also approach the listing agent's managing broker, and explain that you believe that the listing agent used her "inside information" to guide her buyers offer.. and you want to be assured that will not happen again this time... so you'd like to deliver "sealed bids" to the managing broker... this way.. YOU send a bid in to the broker, and the agent must do the same... the agent in this scenario will not KNOW what your new offer is, so they'll have to play fairly.

Good luck.

Valerie,

I'm not clear if this is a dual agency issue.....

Was your agent also the agent for any of the other parties involved?

Believe it or not with the permission of the seller it is legal. This is one of the problems that I see with dual agency. In Ohio the listing agent does not need to disclose if there are multiple offers but if asked if they have an another offer where they are representing the buyer they must answer truthfully.

I let my buyers know at that time that we may be in a losing battle because the seller can allow the terms and conditions of our offer to be told to the other bidders. You end up in a no win situation.

Good luck only about 10% of short sale homes close you may be able to pick it up as a REO.