Foreclosure in Belleville>Question Details

Mark Eye, Home Buyer in Potosi, MO

is it unethical for real estate agents to bid on foreclosures before it is offered to the public by mls?

Asked by Mark Eye, Potosi, MO Mon Oct 6, 2008

I am trying to buy a foreclosure. Everytime I go to make an offer I am told there are 5 offers on the table over the asking price from real estate agents. I have started scoping before they are listed on the mls and have called my real agent to inquire and have been told that there are multiple offers on the property over list price. I think some impropriety is occuring here with the foreclosure listing agents.

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Mark,

I can assure you that there's no improprieties going on.

Last year I went into Home Depot because I wanted to buy 10 sheets of drywall. I was told they were out and to come back the next day. The next day I went in, they were sold out again. I found out later that they were selling in bulk to their big contractors early in the morning. The benefit was being a contractor.

The MLS is just another way to market property for sale. It's not the "only" way.

I'm just wondering how you get information that the offers are from Realtors. I'm a Realtor and even I don't always know who made the other offers. Nobody would disclose that.
1 vote Thank Flag Link Tue Oct 7, 2008
you can never trust people
0 votes Thank Flag Link Fri Apr 22, 2011
could be that it's a perk of the job (if you work at circuit city, you get a better price than the end-user). could also be that you need to re-think your strategy so that you can find the deals & make offers earlier.

ultimately if the properties are priced significantly below market, the offers will ALWAYS be above list price...that doesn't mean that paying above list price is a bad deal if the list price is already below market. Put your offer in. If your offer is highest, you get the house. Ultimately, that's all you can do. I wouldn't suggest letting the presence of other offers dissuade you from making your own.

For example - if a house is listed at $50,000 but is truly worth $100,000 and there are offers of 75,000 on it...is it a bad deal for you to offer $80,000? It's worth $100,000...only way to do it is to know your market, know your comps, and make offers based on market value...not based on list prices.

Hope this was helpful!

Thanks,

-Josh
0 votes Thank Flag Link Mon Oct 6, 2008
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