I will keep it short and sweet. If you are offering cash,7 day COE,10% EMD,No seller credits, 5 Day Inspections, or zero and agree to pay your own closing costs, NHD, HOA Document fees, and your offer was beat by a lower cash offer, then you have room to complain. Now if your offer is Conventional, or FHA you could get beat out on a lower offer if they put more money down. Some asset managers take lower offers if the buyer is willing to pay all closing costs and a 30% downpayment. And I hate to say it, but some Asset Managers are sitting on multiple FHA offers waiting for a Non-FHA offer. Please tell me how your offers are written and what are your terms. Perhaps I can help you. As far as Corrupt, no more corrupt then any other American Business, Government Etc. The Real Estate Industry is thriving. Wall Street and the Government are to blame for the woes of the Economy. You need to get a good Buyers Agent that is friends with the listing agents. Best of Luck

Hi Paul,
I understand you are frustrated, but shouldn't wish ill wills on distressed homeowners.
The real estate industry isn't suffering, the economyand other frustrated buyers like you are suffering.
It wasn't the distressed home owners, appraisers or real estate agents, it was greedy 25 to 40 something financiers on Wall Street creating exoctic products (mortgages) that were attainable through every direct lender or mortgage broker. Those products were pushed to consumers and were driven by the news media. Anyone got a mortgage, even without income statements. If you know of an agent that double ended the deal eventhough your offer was higher, have your agent report them to the C.A.R.
I have dealt with unethical real estate agents, if more agents reported them, we will be in better shape with agents trying to steal clients.

Best Regards and keep on trucking,

Jes Sierra, B.Sc.
Realtor®
Chino Hills, Ca

Paul,

There are many factors involved in selecting an offer. You claim that you are offering more than what homes have been selling for. This is probably a clue that when they read your offer they are considering the appraisal. If you offer more than the property is worth and you are a FHA buyer your offer is not even in the consideration pile. Sellers right now want to close the deals not get tied up in appraisal issues. Have your agent check the comparables and not just tack a ridiculous amount onto the asking price especially if you don't have the cash to pay for the difference. Example: House is worth $150K you offer $170K can you cover the 20K difference with cash from your pocket?

This one is difficult. I do not see a question but a personal experience. So my suggestion is to seek out a BUYERS agent. This is a agent that represents the buyer ONLY! When deciding who to give your business to ask for references. Be sure you call the references and ask all the tough questions. When your due diligence is complete start looking for homes. There is no shortages of good homes available for sale so do not worry about the ones you may have lost. Chalk it up for experience.

Paul,

Simply put.....if you are dealing with short sales and foreclosures there are many factors that stand between you and a successful deal. The Seller, the bank(s), the listing agent etc.

The information is only as good as its source. This simple but accurate idea regularly places agents in a compromising situation when we pass along information that is less that on the mark.

All together too often, we as agents recieve the wrath of the buyer and are blamed for the deeds of others. Also, a reason why many agents are steering clear of these transactions.

It's unfair to blame everyone for the faults of a few. I'd be interested in your thoughts about the banking industry and if in your valued judgement, you feel home owners deserve what they are getting also...........

While it is frustrating to find out that a house later sold for less than you offered for it, most of it can be attributed to the fact that house prices have fallen a lot (33%) in Sacramento County in the past year. If you offered $350K for a house in April and it sold for $315K in August, then the 10% price difference in 6 months was less than the market rate of decline. In April you were trying to buy it for less than the perceived market value. By August, your offer would have been higher than market value, had the listing agent remembered that you were still interested at the higher price.

As far as the savings you or a seller might see on having a two-sided agent: The math tells me that it would be a small fraction of the transaction. Say you were buying a $350K house. - The total commission would be $21,000 or $10,500 for each agent. If there is no buyers representative and the listing agent splits the "savings" between the seller, buyer and him/herself, then each principal and the dual agent each benefit by $3500 which is equal to only 1% each of the dollar value of transaction. If all parties agree to this ahead of time after full disclosure of the nature of agency relationships, and no agent, buyer, or seller is misled or cheated, then there might not be an ethical violation.

I think that it is usually preferable to have a buyers agent involved. But you can't build trust with any agent, if you think everyone is a suspect.

Paul, I am so sorry to hear about all your disappointing experiences. I, personally, haven't run into a lot of shady real estate professionals. I have heard they are out there.

I wish I knew more about your offers and what was actually accepted. Were you offering a large or a small down payment? Did you provide your credit scores/reports along with your offer? Were you pre-approved for a mortgage?

There are many factors that come into play when a seller considers the offer. The highest dollar amount isn't always the deciding factor.

I hope things go better for you and you find a great deal on the home of your dreams!

Paul,

This is just the tip of the iceberg. You would be surprised how unethical the majority of real estate agents are. This industry is perfect for con artists and crooks. They will do and say anything to get your business. The problem is that anybody can get a real estate license as long as they pass all the required testing and background checks. All new agents should be required to attend a sales training program so they know how to handle things properly. Another problem with this industry is that you are dealing with legally binding contracts when you sign them. Sneaky agents understand what this means. They will tell you whatever they have to to get you to sign contracts. As long as they don't put anything in writing themselves, you will never be able to prove that they lied to you, and they know it. I'm sure there will be plenty of people saying that I am wrong and that this doesn't happen. Those are the agents you need to be wary of.

Unfortunately, you found the greedy morons of the industry. There are good and bad people in real estate just like any other profession.

Contact friends, co-workers and family along with the local real estate reporter for recommendations of a qualified person.

Also, make sure they are a REALTOR(R), a member of the National Association of REALTORS(R), not just a real estate agent. REALTORS(R) have a code of ethics that they live by and could be punished for not following.

You bring up a couple of items that would require further investigation. If you wanted to file a complaint, Erin gave the correct way to pursue it.

As for agents saying that they could do more for you if allowed to cover both ends...while it's true that a realtor can represent both the buyer and the seller, there are clear rules on how to do this. Personally, I will only represent one side of a transaction. The reason is that I don't feel that I can give 100% to negotiate on behalf of my client, if I'm representing both sides. I'm not sure that is the problem that you're experiencing though.

I think your real issue is a matter of trust and understanding the services a realtor can provide for you. While the ultimate decision on what your offer is, the realtor can give you the information so that you understand the risk of how you structure your offer.

It isn't in the best interest of a listing agent (representing a seller) to accept an offer LESS than what's offered by you. It isn't in the interest of the buyer's agent to lose a deal when their buyer offered more. Could an offer already have been accepted prior to you submitting your offer? Could your offer have contained terms that, while at a higher price, have actually been LESS than an all cash offer with no request for seller concessions?

A seller selects the best offer that they think will actually be completed. If you offer more money but you first need to sell your own home, well then the seller may not see that as good of an offer as one that's an all cash offer, and can close in 15 days.

Review the WHOLE OFFER that you are presenting, including price, and terms. Find a realtor you trust that will negotiate the best on your behalf. This is a competitve market and the informed buyer can get a good home.

Sorry for your frustration. And hopefully you continue your search, because you'll get your home if you stick with it.

Who is representing you now?
Your own buyer's agent; or a listing agent representing the seller?
What properties are you making offers on?
Regular people selling because they want to move; or REO's, short sales, and foreclosures?
What are the other terms of your offers?
I don't understand what you mean by "many agents...said they could do more for me, if they were allowed to cover both ends of the sale." That statement just does not make sense.
Is it possible that you have misunderstood what they were saying?
Is it possible that they were trying to explain "agency" to you?
If no one has adequately explained "agency" to you, please go to my web site and read about Exclusive Buyer's Agency and the history of how it came to be as a result of consumer advocacy groups demanding representation for buyers of real estate.

I am sorry that you had bad experiences...if what you describe really is the case, you can report these agents to the Sacramento Association of Realtors if they are members - http://sacrealtor.org/about/pro_standards.asp - or even the CA Department of Real Estate - http://www.dre.ca.gov/cons_complaint.html