Home Buying in Hudson>Question Details

joe, Home Buyer in Hudson, MA

We had an accepted offer, we went through 3 grueling weeks of negotiation, we lifted our contingency and finally have a signed P&S.

Asked by joe, Hudson, MA Sat Oct 29, 2011

The financial officer works for the same company, different office than the sellers broker. Our loan was approved with no problems, we gave our good faith check. A work colleague, also in the market looking for a home, coincidentally came across the house. He was talking about going to see "a" cool house this weekend, but was concerned because the broker had told him she wasn't supposed to show it, because there was an offer, but she was sure it was going to fall through. When he pulled it up on the laptop, I was shocked! He told me he was also nervous because in some sites its listed as 3800 sqft and others as 3000 - AND ITS STILL FOR RENT! (The house has been empty since April). Sure I be worried? Can the realtor show the house? Can they still accept offers?

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Joe - The listing agent can show the property until you are ready to close. She knows that deals fall through every day and is just covering her bases. However, she should not be telling people that she does not believe your deal will go through. She may be doing this to get these other potential buyers to hire her to help them look for another house. If you have a signed purchase and sale agreement you probably don't have anything to worry about but if you don't have your own attorney you should get one right away. If you do not have a buyer's agent it's probably a bit late for that on this house but if this deal falls through you should definitely get yourself one, who will protect your interests, not the seller's. Basically without a buyer's agent you don't have anyone advocating for you in the negotiating process--and it should not cost you anything since most of the time the buyer agent's fee comes from the listing agent. Good luck to you.

Ellen G. Friedman, Keller Williams Realty, ellengfriedman@comcast.net or 617-448-1542
http://www.ellenfriedman.biz
0 votes Thank Flag Link Sat Oct 29, 2011
Wow!! THANK YOU ALL! I do have a buyers agent, and as a result of Ellen and Deb Nichols, I IMMEDIATELY contacted my agent. 1) The house is STILL listed for RENT and the sellers agent even lowered the price from $3,600.00 to $3,200.00 AFTER the Offer to Purchase and the Deposit was paid. On top of that, my friend who is in the market, found the house LISTED as 3800 sf and 3000 sf, depending on the web site. And on top of that he was told that the "offer would fall through". To make matters of more concern, the house popped up on "Open Houses" in our Town for tomorrow, and the Sellers agent had CASHED a 15K "earnest" check on Friday. The P&S was signed by us last Sunday, and was overnighted to the sellers on Monday, who signed on Tuesday and overnighted back. We all had a signed copy on Thursday. So I asked my broker "whats going on"? As I got a phone call from my colleague saying - "Hey, I'm going to "your" house on Sunday - I may counter offer you and take it away!" - So my broker IMMEDIATELY called the other broker and asked. She said she'd take it off the market immediately (Closing is scheduled for the 30th, hopefully the roof which has issues won't cave in with this snow! It has "issues" that were part of the negotiation!). She also said she was going to cancel tomorrow's open house. THANK YOU ALL for your responses! No, my friend does not have a buyers agent yet, and in addition to mine, I know who I'll recommend based on these postings and who I wont recommend! The sellers agent has been very confusing, putting the sellers at panic mode, and just very cooperative. The fact that even after the P&S and cashing the check, she still had it up for rent and still posted differently in different sites, made me very nervous. And to boot, my colleague asked me - "Is it 3800 or 3000 sf? when I called to ask for details, off the bat she told me 3800? (the house is 2750 ABOVE ground, the rest of the 3000 is finished basement). I know who WONT resale the house when its up next. I'm sure she has good intentions, probably a novice, and we all have to start somewhere! THANKS TO ALL!
1 vote Thank Flag Link Sat Oct 29, 2011
(Tim- in MA the process of buying home goes through an extra step: first there is an accepted offer, then after inspections, etc, there is a Purchase and Sale contract. )

Joe, once you sign a P&S the home should not be shown and no offers can be accepted. You should tell your buyer agent, if you have one, who should report the listing agent, or at least call and ask what is going on.

It sounds like your friend doesn't have a buyer agent. I hope you have one. This is what they would help you navigate.

As far as the different sites fo, I wouldn't be concerned. The most accurate one will be Realtor.com. The rest get fed by different sources and are updated less often, so it isn't unusual for them to not match. Your agent will also have access to the local MLS, which is the official source. If you don't have an agent, let me know and I'll look it up for you. Minimally you should visit the Hudson town hall and get the field card from them to verify the information on the listing sheet.

Not sure why the agent thinks it will fall apart. If your lender gave her that hint, then you should find another lender!

Good luck!
Web Reference: http://Debn.net
1 vote Thank Flag Link Sat Oct 29, 2011
Joe, I am so glad to hear you have a buyers agent. It wasnt clear in the original post.

Unfortunately shady tactics like this plague our industry and the reasons are 99.9% tied to dual agency which is why buyers should always hire an exclusive buyers agent ... Not an agent that calls themselves a "buyers agent" but still works for a listing firm or works on a team that takes listings, but a buyer broker who works for a company that ONLY works with buyers (Never takes listings) It will keep your interests protected throughout the entire process.

It appears the seller broker was out using this listing as a bait and switch ... Another issue that plagues the real estate industry. Agents use a good listing to lure buyers or renters in, secure them as a client and then switch them to other properties they are listing. I hope your current agent wrote a formal complaint about the agent to powers that be.

We built our company Territory.com to solve all these problems. Any time you or your friends have questions / need some advice feel free to reach out to us directly. We are experts on the buy-side and how to handle the scenarios.

We hope you have a clear to close and enjoy your new home! :)
Web Reference: http://territory.com/
0 votes Thank Flag Link Tue Nov 1, 2011
Joyce -- that was the point I was making, that both parties have to agree to dual agency before the deal is negotiated. A listing agent can sell to a buyer who does not have a buyer's agent but in that case she or he represents only the seller and the buyer has no representation.

Joe, I'm glad I could be helpful--and glad to hear you do have a buyer's agent.

Ellen G. Friedman, Keller William Realty
0 votes Thank Flag Link Sat Oct 29, 2011
Ellen I'm pretty sure in the Agency CEU we were told it is only "Disclosed Dual Agency" only if both parties agree before hand...

- j
0 votes Thank Flag Link Sat Oct 29, 2011
Just one correction to Joyce's post: the listing agent was not a dual agent unless she got permission to take that position from you, the buyer, and the seller. She might have been representing only the seller, in which case you were not represented, unless you had a buyer agent. She should have given you the Mandatory Agency Disclosure form to sign, on which she would have checked the box indicating whom she was representing. If she did not give you that form to sign she is in violation of the law.

Ellen G. Friedman, Keller Williams Realty, ellengfriedman@comcast.net or 617-448-1542
http://www.ellenfriedman.biz
0 votes Thank Flag Link Sat Oct 29, 2011
Joe - forgive me for interjecting into your thread, but I really have to say something.

Scott Nelson - you are way out of line with your statement: "At least they are disclosing that there is currently an accepted offer/contract but as a Realtor (R) they are required to be honest in their disclosures, don't know if you're confusing a sales agent or broker with a real Realtor (R), there's a difference"

As with *any* profession, there will be people who are good at the job and people who aren't, people who tow the straight and narrow and people who'll cut corners, people who will be honest and people who won't.

Your statement implies that only a REALTOR® would be honest, is not only elitist and inaccurate, but offensive.

REALTOR® is a brand, for which a Licensed Real Estate Agent or Licensed Real Estate Broker pays annual dues of +/- $600.00 to be associated with. You can't be a REALTOR® without first being a Licensed Real Estate Agent or Broker.

Up until 5 months ago, I was a REALTOR® and actively involved at the Local level, serving my 2nd year on the NCMAR BOD. I earned my CBR, GRI, e-PRO & LMC.

I resigned my position on the Board of Directors of NCMAR and resigned from the National Association of REALTORS®, over an issue that I felt was unethical, as did other REALTORS®.

I came into this job in 2005, with my own set of ethics. The REALTOR® Code of Ethics happened to match those ethics.

I do my job as a Buyer Agent no differently today, than I did 5 months ago.

Back to the regularly scheduled program -

Joe, as other's have said, hopefully you were represented by your own Buyer Agent and not the Listing Agent. If the Listing Agent represented both you and the Seller, then that would have had to be "Disclosed Dual Agency".

Bottom line, you have a signed P&S and while the Seller had the right to request the Listing Agent continue to show the house, that should have been made clear to you.

The Listing Agent did NOT have the right to disparage the viability of your transaction and in doing so behaved unethically whether they were a Licensed Real Estate Agent/Broker or a Licensed Real Estate Agent/Broker that is also a REALTOR®.

Additionally there are scams out there which lists properties that are for sale as being for rent. Craig's List and other sites have a known problem with this issue.

I would recommend your colleague find themself a reputable Buyer Agent to look out for their best interest and if for any reason your transaction does not Close, please do so yourself.

I hope this helps clarify things for you and your Agent is able to answer your specific concerns.

Respectfully,

Joyce
Web Reference: http://www.JoyceLin-RE.com
0 votes Thank Flag Link Sat Oct 29, 2011
Well a couple things:

1. Did you have a buyers agent working for you in the purchase
2. Did you have your own attorney working for you in the purchase
3. What other contingencies were part of the offer & purchase and sales contract
4. Has the purchase and sales contract been signed by all parties involved, including lenders if it's a short sale or bank owned property.
5. What info was used for the statement of living area ( find out the sources, what was advertised/represented to you in print)

You should absolutely consult with your buyers agent and/or attorney to find out the specific answers to these questions and clarify your questions with written answers. Often times there is a financing contingency where until fullfilled some listing agents will continue to show the property and also possibly solicit buyer clients to work with or solicit back up offers. Language to this effect can be in P&S agreements or by mutual agreement by buyer & seller. You'll need to look into what the listing agent/broker's policy is on this. At least they are disclosing that there is currently an accepted offer/contract but as a Realtor (R) they are required to be honest in their disclosures, don't know if you're confusing a sales agent or broker with a real Realtor (R), there's a difference. Your buyers agent/broker and/or attorney can clarify this with you.

Hope this helps,
0 votes Thank Flag Link Sat Oct 29, 2011
It was originally contingent upon the rental of our condo, but we removed that contingency - we've worked that out. We have a signed P&S. We put the original offer in late Sept. Financing has gone through, they are working on appraising the property. The P&S has been signed. Closing is scheduled for Nov 30. The sellers have to fix a couple of things. The listing agent told my colleague she would show it, even though she had an accepted offer, because she didn't think the P&S was going to go through (the sellers live in another state, and the lawyers were going back and forth). Does this help?
0 votes Thank Flag Link Sat Oct 29, 2011
I am confused, is there an offer or is there a contract? Big difference! What contingency did you have and if it was removed was it signed by sellers and buyers both? You have loan approval? Normally that takes 20-30 days and requires an appraisal, has that happened? You said the broker said it was going to fall through, which broker - buyers or sellers or mortgage broker?
0 votes Thank Flag Link Sat Oct 29, 2011
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