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House, Home Buyer in 53182

Can a broker refuse to show property that he has listed?

Asked by House, 53182 Thu Feb 4, 2010

My husband and I have been looking for a home with some acreage, recently we found a property and called the brokerage number on the sign, they refused to show the home. Stating that an offer was pending bank approval. Then after a week the house was still listed we called again, same thing. We are pre- approved for double what the house is for sale for. Can they do this? is it a tactic to start a bidding war? The broker is a private company, not well known- could this be a scam?

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Realtors have licenses issued by the Department of Real Estate. Brokers have realtors license as well as brokers license. All these licenses are over seen by the Department of Real Estate.
If I were in your shoes, and I have been. I would ask nicely the first time, then I would send a letter to the Department of Real Estate as well as the realtor and broker.
There are consumer protection laws out there for you and I against this type of false advertising, unethical business practices, etc. File a formal investigation with the DRE and let them do the job of investigating the matter. You can help get these "bad guys" out of the business. Good work!
1 vote Thank Flag Link Fri Feb 5, 2010
Thank you Hannah and everyone for your time and expertise- we appreciate it!
0 votes Thank Flag Link Sat Feb 6, 2010
It depends on the agreement with the Seller they represent. You'll also see cases where
the Seller want to continue showing the property hoping to get a backup offer in case
something goes wrong.
0 votes Thank Flag Link Fri Feb 5, 2010
Another prime example of why it is so important to have your own "Buyers Agent" representing you. And to echo the other remarks... at no expense to you! visit our website and click on Buyers Agent a Must, and see how it can possibly save you thousands $$. Driving around calling numbers on sign is not the wisest approach to purchasing Real Estate. There is no reasonable logic behind refusing to show a property to start a bidding war. Bidding wars are usually started by listing a property bellow market value so you can increase the showings on the listing. It is however very logical that the broker has suspended showings on that property because there is an offer pending bank approval. Sounds like a short sale situation, but keep in mind short sales take a long time and often go through several different buyers before the deal is done. So keep an eye on the property to become available again. Good luck!
0 votes Thank Flag Link Fri Feb 5, 2010
I am agreement with my fellow Reatlors. The listing broker can decline to show a listed property for the reasons noted.
I second Jeff's suggestion of hiring an agent to represent you and your husband in your real estate endeavors. One with local knowledge and insight. As a Buyer's agent is paid from the proceeds of the real estate purchase, there is no out-of-pocket expense to you of having a real estate professional in your corner.

Best to you in future,

Fred Wiske
Real Executives Integrity
East Troy, WI
Web Reference:
0 votes Thank Flag Link Thu Feb 4, 2010
Dear House,

Yes, the listing brokerage can refuse to show the property, but should do so only at the direction of the seller. If the seller has already accepted an offer to purchase, they might not want any other showings until the lender has completed their portion of the transaction. This would not be a wise decision on the seller's part, but it is their property, and they can make poor decisions if they like. If the listing brokerage has taken it upon themselves to not show the property, without consulting with the seller, they may be in violation of several licensing laws, depending upon the circumstances.

Do you have an agent working on your behalf (a buyer's agent)? If you don't, you might want to get one. Many times another agent can get more detailed information from the listing agent regarding a situation that will clear up all of your concerns. It probably is not a scam, but have another agent call to see what the true status of the property is.

Dave Bellovary
Broker Associate
RE/MAX Newport Realty Corp
Racine, WI
262-939-0935 (Direct)
0 votes Thank Flag Link Thu Feb 4, 2010
If haven't already done so, you may wish to speak to the broker owner of the realty company and ask to further explain the no showings--however, if there is an accepted and with possibly a back up offer(s) or the property is under contract , more often than not it will not be shown--in addition keep in mind--sometimes some sellers are confident with their accepted offer, and do ask that no more showings take place--again check with the broker owner for a broader explanation as it relates to this property.
0 votes Thank Flag Link Thu Feb 4, 2010
You may want to approach the listing Broker to see if the seller may be willing to accept secondary offers, or at the very least, get your name on the list for a call should the current offer fall through for some reason.
I am confident this is not a scam as all Realtors are bound by the "Realtors Code of Ethics". It is not uncommon for sellers to discontinue showings once an acceptable offer is in place.

Good Luck


Chris Novak
Coldwell Banker HR
0 votes Thank Flag Link Thu Feb 4, 2010
Yes, they can decline to show the property. Once there is an offer in place the seller may have directed them to not show the property anymore. It robably still shows as being available on public websites, but shows as having an offer in MLS.

The term "pending bank approval" indicates to me that it is either a short sale or a foreclosure. The bank may very well have directed the broker to suspend showings once the offer was in hand.

The best idea for you and your husband is to hire the services of an agent to represent your interests in the home purchase. This requires a contract, but the service is of no charge to the buyer since the agent is paid from the seller's proceeds.

Good luck!

Jeff Gramins
First Weber Group
Web Reference:
0 votes Thank Flag Link Thu Feb 4, 2010
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