Home Buying in East New York>Question Details

Kerry James, Real Estate Pro in Brooklyn, NY

Is it standard practice for RE brokers to advertise 129K for prop, then say its 169K when approached?

Asked by Kerry James, Brooklyn, NY Thu Jan 31, 2013

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This question was asked from this property: http://www.trulia.com/property/3106299442-245-New-Jersey-Ave…

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11
Cristina Callegari’s answer
Hi, this is definitely not the standard practice. However, it might be a case of a bidding war on a property. $129K is a very low price for a home in Brooklyn NY - no matter how damaged it may be that is below land value. Often times, the marketing strategy for a property would be to list below value to incite a bidding war. The agent might have been telling you what the current price was that he/she had offers on for the property. As of 03/11/2013 Sold â–ºview detail $165,000 Public records Public records. I believe this was a case of a bidding war and not a bait/switch as others have suggested.
0 votes Thank Flag Link Thu Oct 31, 2013
Hi Kerry,

Thanks for your question. No that is not standard practice Kerry. Although, there are realtors out here that will try just about any tactic to generate interest in their property that is a dangerous one as far as ethics is concerned. I am sure that every board of realtors has their state and city specific guidlines but outside of them are the National Association of Realtor Ethics. Changing prices is just bad business practice. Under article 12 of the National Association of Realtors please read:

Article 12
REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations. REALTORS® shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing, and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional. (Amended 1/08)

Also Please refer to Standard of Practice 11-1 :

Standard of Practice 11-1

When REALTORS® prepare opinions of real property value or price, other than in pursuit of a listing or to assist a potential purchaser in formulating a purchase offer, such opinions shall include the following:


identification of the subject property

date prepared

defined value or price

limiting conditions, including statements of purpose(s) and intended user(s)

any present or contemplated interest, including the possibility of representing the seller/landlord or buyers/tenants

basis for the opinion, including applicable market data

if the opinion is not an appraisal, a statement to that effect (Amended 1/01)


I hope this was helpful to you if you need further assistance contact me direct.


Ramona Johnson, Licensed Realtor®
Coldwell Banker Mid Plaza Real Estate Office
Mobile (347)488-2606
1 vote Thank Flag Link Thu Jan 31, 2013
That is definitely unacceptable and a lot of irregularies are being tolerated in real estate because it is not reported. Report this to the State because brokers are doing these things and getting away with it.
They do it to attract buyers and then direct you to another property within that price range. The brokers are very irresponsible, and that is putting it mildly. If real estate agents are doing something that should not be done, one cannot even report it to their brokers, because they are even worse.
0 votes Thank Flag Link Tue Feb 5, 2013
Kerry,
As others have stated, not only is it NOT standard practice, it is not ethical and could prove to be illegal.

Here's the problem....
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The data you are looking at is on a aggregate real estate website - Trulia and Zillow are two.
Real estate professionals have nothing to do with the data appear here. The data does NOT come from the local MLS or any source directly related to a real estate professional. In Trulia's own words, the data comes from ListHub. These aggregate websites can and do suppress data, change data, substitute data, modify data and spindle, fold and mutilate the data at their pleasure.
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Unfortunately, citizens like yourself do not understand this and blame the only face you ever see....the real estate professional.
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If you are a serious buyer, and you appear to be, you need to promote yourself to reliable data sources. Contact a Hempstead NY agent and get connected to the most accurate, timely, comprehensive, relevant data base available. Then you can hold the agent accountable.
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Best of Success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
0 votes Thank Flag Link Fri Feb 1, 2013
No Brokers do that? There may be similar properties, so the advertised property become the switch property!!
0 votes Thank Flag Link Fri Feb 1, 2013
Kerry,

You will need to discuss with the broker/owner of this real estate company, according to the MLS, this property is listed for $129,000.

Good luck.
0 votes Thank Flag Link Thu Jan 31, 2013
No. I will say that is real estate often times people change their minds and things like this can happen. Either way, it definitely is not a "standard practice".

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Thu Jan 31, 2013
Sounds like a "bait and switch". It is possible that the agent you spoke with made an honest mistake and were thinking of another property when you spoke with them. Find out if the agent is a member of REBNY in NYC or is a Realtor. If they are and it's listed incorrectly, file a complaint. This type of thing can make all of us look bad. If you are a broker, don't let this slip by.

Good luck.

Donald Mituzas
Licensed Associate Broker
2008 Realtor of the Year
Douglas Elliman Real Estate

http://www.nyhomeseller.com
0 votes Thank Flag Link Thu Jan 31, 2013
No not "standard", in fact, it is misleading and unethical....if not illegal.

So - what did they say when you questioned the big difference in list prices?

If this was done on purpose, as a bait and switch ploy, then it should be reported.
0 votes Thank Flag Link Thu Jan 31, 2013
There must be a story behind it. Could have misunderstood or could the agent have misquoted? I have misquoted a price more than a few times when asked while I was in the car or not in front of my notes on a house. Check again, we don't do it on purpose.
0 votes Thank Flag Link Thu Jan 31, 2013
No it certainly is not. We could all write a diatribe on this matter, but it sounds as if you were confronted by this situation. Talk to the agents manager and find out why the price changed.
0 votes Thank Flag Link Thu Jan 31, 2013
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