Home Buying in Hancock>Question Details

Cindy, Home Buyer in Denver, CO

Wondering how a listing like this is legal? I'm from Denver. Seller has instructed agent not to present any offer not providing for $1,500 bonus.

Asked by Cindy, Denver, CO Sat Aug 17, 2013

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11
The National Board of Realtors has provided a very informative article on this topic:

http://www.realtor.org/realtororg.nsf/pages/respasec8b
1 vote Thank Flag Link Mon Nov 25, 2013
I will pass this on !
Flag Mon Nov 25, 2013
Unfortunately many companies are looking for a minimum commission for taking on short sale listings, the way they get around it is to charge the minimum commission to the interested buyer.

The listing agent will have the seller sign a addendum stating that they will only take the offer if the fee is included in the offer.

An office I used to work at would charge this fee and I refused to so because our job is about helping families not hindering the sale due to fees and personal profit.

Thank you
1 vote Thank Flag Link Mon Nov 11, 2013
Hi Cindy,

Colorado is pretty country.

If you can give me the MLS number I be able t help you better. Trulia as good as it is, is not
the Official site where agent place their listings. I be glad to summit your concerns with the Board the "real estate agent" is associated with.

What you see in Trulia is a feed off the National Real Estate Multiple Listing services. I am sure you encounter, some listings on Trulia, that are no longer available to you. Agent, are not require to update their listing in Trulia, and I am not sure when Trulia does their updates.

Realtors, are require to place any status change in due time or they, and the Realtor Broker can be fine. Also if I come across any listing, as you mention, I am require to flag it as "troublesome" for investigation. I would not even mention and waste my time mentioning and showing the property to the people that place their trust in me.

Having said that, Brokers are require to review any submitted listings. Also, if in writing, the seller can give instruction to the listing agent as to what listings he wants to know about. Otherwise, the listing agent must submit all offer, even if it for 1 dollar, or otherwise agreed to, in writing from the seller.

As for the bonus, need more information about this. Sometime, a bonus is given to the buyer agent, if
he can get an offer, at a certain price. This is often seen, in the confidential part of the listing between agents, and not part of the public part. I personally, am not interest in these and I disclose this to the people that pace their trust in me. I will look into why such an offer was made, and again share this with my buyers I am working with..

If you like to get a true MLS listings of properties, or checked these out, and what they look like, please go to

http://www.realtorrongroup.com

Hope I was helpful Cindy. Have a great day.

Ronald Wolchesky
License in Florida
realtorronw@yahoo.com
239-349-4684
Web Reference: http://realtorronw.com
1 vote Thank Flag Link Sat Aug 17, 2013
Sorry Richard,
According to TRULIA what you see on comes from LISTHUB
not the MLS. LISTHUB and Trulia reserve the right to change the data...and they do.
Flag Mon Nov 25, 2013
I agree, I have been licensed in several states which would never allow this. I did write to the FREC Florida real estate commission and was first told this was illegal, but nothing ever came of it. To boot the seller was the Condo president who was foreclosing on unit owners who could not pay there dues or one was in a nursing home with dementia. Then listing them as short sales.... This is still not over the Condo bylaws state the the board members are not allowed to benefit directly or indirectly by there position on the board.... Its outright dispicable
0 votes Thank Flag Link Mon Nov 25, 2013
The unit owners were told that is why you voted us in, we had no choice in the matter, only. that was a liability to us all and not a wise decision.. And the President of the board as noted shall not benefit directly or indirectly by his position. And the 1500 dollar bonus to the President was not voted on by the unit owner as well...
Flag Wed Nov 27, 2013
no the seller was no the Condo association, as noted by the clerk of the court!
Flag Wed Nov 27, 2013
the seller were the unit owners not the Condo board!
Flag Mon Nov 25, 2013
I don't know specifically what the regulations might be in Denver--and how that directive was phrased--but the listing agent is required to present all offers unless specifically instructed to the contrary by the seller.

Example: A house is listed for $300,000. A seller could legitimately instruct the listing agent not to present any offers under $260,000. Now, a seller can't require anything illegal, such as instructing that no offers from a minority group be presented. But if a seller wants to say that all offers must include a $1,500 bonus, then (unless a Denver agent can cite something to the contrary) I suspect that the listing agent would be expected to honor his/her client's request.

The request strikes me as somewhat odd. And I'm guessing that most buyers would simply reduce an offer by $1,500 in order to provide that $1,500 bonus...so it's difficult to see how the seller is benefiting. But sellers aren't always logical.

Hope that helps.
0 votes Thank Flag Link Sat Aug 17, 2013
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Thank you for your answers. It was the listing agent, it's listed that way on Trulia. I've seen negotiator fees for $2500 for a short sale in Naples even though the bank had already agreed to the sale price. The negotiator was the husband of the listing agent and an attorney! This wouldn't be legal in Colorado, it would be a total conflict of interest.
0 votes Thank Flag Link Sat Aug 17, 2013
If its disclosed upfront in writing to all parties it is legal. Ethical? Fine, fine line so small I have a hard time seeing it. Like Israel said, these agents are only doing a disservice to their seller, particularly short sale sellers who have a hardship.
0 votes Thank Flag Link Sat Aug 17, 2013
Agents are required to present all offers and I seriously doubt the seller gave instructions otherwise. I specialize in short sales and have had to get around these ridiculous comments in MLS before. Give me a call at 239-707-4575 and I will be more than happy to discuss this with you.
0 votes Thank Flag Link Sat Aug 17, 2013
Cindy, there is so much we don't know, and possible NEVER will know. Just so we are on the same page..."Who gets the bonus? Seller? Buyers Agent? Listing Agent? (Let's assume listing agent.)
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Lets imagine the home owner advertised for an agent who would sell their home for $5.
Some desperate agent responds, but advises the owner..."I must have a minimal compensation of $$$." The seller says, "Get it from the buyer." Isn't it great! Sellers and buyers have options. Remember, everything is negotiable. It is now possible the buyer is supplementing the $5 paid by the seller with the bonus dollars. For a seller, this sounds like a GREAT IDEA!
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The buyer must evaluate the value the property being considered, the 'bonus' cost and make a decision.
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I've written many times. the costs a buyer will incurr is dependant on the real estate they select. There exists today, many real estate sales with similar requirments. You can thank the big banks for the evolution of these practices. It's been my position that homeowner should have EXACTLY the same options available to them that the big banks when the home owner wants to sell their home.
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Buyers AND Seller have demanded more options in the buying and selling process. With more options comes greater complexity. I applaud the development of more options. Unfortuneately, such developments is not in the best interests of the majority of buyers and sellers.
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More information is needed regarding the specific offer you describe.
0 votes Thank Flag Link Sat Aug 17, 2013
Its more than that. The buyer also has to pay a $750 negotiator fee too. Sometimes the bonus is $2500. You can challenge it and ask to see it in writing from the seller. You probably won't get the deal, however. The agents are advised by their broker to do this.
0 votes Thank Flag Link Sat Aug 17, 2013
I have wondered the same thing for a while. I don't know the legality of it. Most agents will not even show their buyers these types of listings. So the seller's agent is doing their seller a bug disservice.

Israel Emory
MarketWatchRealEstate.com
IsraelEmory@gmail.com
239-292-2499
0 votes Thank Flag Link Sat Aug 17, 2013
Thank you for your answer. It was the listing agent, it's listed that way on Trulia. I've seen negotiator fees for $2500 for a short sale in Naples even though the bank had already agreed to the sale price. The negotiator was the husband of the listing agent and an attorney! This wouldn't be legal in Colorado, it would be a total conflict of interest.
Flag Sat Aug 17, 2013
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