Inquired about a home last week and was told it is under contract, but still shows active in mid-fl mls.Seems dirty?Put in backup offer.What to do?

Asked by Gg, Sarasota County, FL Tue Jun 14, 2011

I feel I should put in a "real" offer to force the selling agent's hand. I find this very unethical and possibly illegal as I am very familiar with FL state real estate rules and regulations. Any advice would be appreciated!

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19
Gg, Home Buyer, Sarasota County, FL
Wed Jun 15, 2011
Thanks again to those of you kind enough to take the time to weigh in on my issue. This is not a distressed property and my agent has submitted a back up offer. They listing agent clearly has little confidence in the buyers for which they accepted a contract offer from as she has been communicating with my agent in an unsolicited manor. The home was inspected today and we will have to hope that the "buyers" do not qualify for financing. I hate to wish ill upon someone else for my gain, but... My broker feel that the listing agent is wrong in not changing the status of the property due to a signed and accepted offer, but I will wait until the process unfolds to issue any formal complaint. If I do, it will only be after a talk with the listing agent to hear her explanation of why she broke the rules. I hope I get the house. I love this house!! I blame myself for not stepping up and offering what I really believed it was worth and tying to get the best deal. This should be a lesson taught to all buyers. He who hesitates is lost.
2 votes
Alex Krumm, Agent, Sarasota, FL
Tue Jul 19, 2011
Hi Gg,

I'd love to hear what happened with this offer - how did this go for you? Were you able to buy the house?


Alex Krumm
Re/Max Alliance Group
Broker Associate
GRI, Certified Distressed Property Expert
Winner, Five Star® Best In Customer Satisfaction: 2010, 2011

941-234-3597 Direct
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alex.krumm@verizon.net
1 vote
Radinka Ilsi…, Agent, Lakewood Ranch, FL
Wed Jun 15, 2011
Yes, call the Listing Agent's broker for sure. They have access to both the MLS as well as the file in question.
1 vote
Gg, Home Buyer, Sarasota County, FL
Wed Jun 15, 2011
Thank you all for your input, but as previously mentioned, this is not a short sale. I am in real estate marketing and have access to the mls. The status is still "Active" with no reference of any kind to under contract with contingencies. Should I call the broker to complain?
1 vote
Radinka Ilsi…, Agent, Lakewood Ranch, FL
Tue Jun 14, 2011
correction: The status should go on PENDING, not active...
1 vote
Radinka Ilsi…, Agent, Lakewood Ranch, FL
Tue Jun 14, 2011
Hi Gg,
In our local MLS we have a new system where the home may show Active (with Contract). On your purchase agreement, it should state whether or not the Seller is allowed to accept back up offers. I agree though, once the contract is signed by all parties, the status should go on active, and in fact the Listing Realtor needs to enter in the MLS the date the offer was received and accepted as well as an anticipated closing date. If you dont want to put the address on here, you can send me a message here and I can look at what it shows in MLS from an agent's view.
1 vote
Brian McGree…, Agent, Sarasota, FL
Sun Jul 3, 2011
Where are you viewing this property as "active"? If your agent is viewing it on MLS and the listing agent says it is under contract then there may be a reporting issue. However, if you are seeingit as "active" anyplace other than MLS (Realtor.com, Trulia, etc...) it may be a site update timing issue. The non-MLS sites update periodically. Some take as long as 45 days to update which could be the reason it is still showing as "active".

My suggestion, speak with your agent. He/she is working on your behalf and should be aware of MLS rules of reporting. If there is an issue he/she can report the issue directly to the MLS system. MLS has the ability to fine agents or subject them to cancellation, for not following their rules.


BRIAN A. MCGREEVY
Broker/Owner, REALTOR, MBA, GRI, RRS, ABR, AHWD
2007, 2008, 2009, 2010 & 2011 Best in Client Satisfaction
Five Star Award Winner
Sarasota Home Realty
2100 Constitution Boulevard
Sarasota, FL 34231

Website: http://www.SarasotaHomeRealty.com
E-mail: SarasotaReal@gmail.com
Phone: (941) 544-6763 FAX: (941) 866-7588
0 votes
Alma Kee, Agent, Tampa, FL
Wed Jun 15, 2011
Hi GG,

Are you working with a Realtor?

If you do have an agent, what does she advise?

Maybe the Seller has not actually signed the other offer so that is why it is still (legally) in active status. The seller is under no obligation to accept an offer from you or any other buyer--even above the asking price. The listing agent has an obligation to present all offers to the seller.

Let us know how it all works out and what the listing agent's broker tells you.

All the best,
Alma
0 votes
Bill Eckler, Agent, Venice, FL
Wed Jun 15, 2011
Gg,

We really don't have enough factual information to cry "foul." If this is a distressed sale(foreclosure or short sale) the agents may be waiting for the lender to accept or negotiate, the final terms of the agreement. Very often, the "active" status is not changed on the MLS until all of the contingencies on the transaction have been met.

It may be helpful to have your agent contact the listing agent for an update on the status of the property. Another consideration is that the deal fell apart and the property is now available for new offers. Best to find out an be certain.

There is no reason why you can't present a back up offer to the listing agent. What would you stand to lose by expressing a willingness to serve as a back up offer?

Good luck,

Bill
0 votes
Danielle Sha…, Agent, Cape Coral, FL
Wed Jun 15, 2011
Definitely call the broker
0 votes
Jack Liebsch…, Agent, Pompano Beach, FL
Wed Jun 15, 2011
I would simply submit your offer and expect the listing agent to forward it on to the seller, unless of course the seller previously instructed the agent not to.
Web Reference:  http://www.pbagent.com
0 votes
Alma Kee, Agent, Tampa, FL
Wed Jun 15, 2011
In the MyFlorida MLS system the listing agent is required to move the status to "pending" or "active with contract" (shows up as merely active on realtor.com) within 48 hours.

A property can remain in "active" status on a regular sale that has a contract if there is a contingency on the sale of the buyer's property and a "kickout" clause in the contract. The listing public remarks must be updated to include wording to disclose the situation.

Once a Seller signs a contract with a buyer, they cannot also sign a contract with you, hence your "backup" position.

It sounds like you have an adversarial relationship with the listing agent so should the current contract not close, you may have difficulty with competing with other offers who will possibly be presented in a better light by the listing agent to the Seller. Sorry to say but people are highly emotional and may not act in the best interest of all parties if they get their feelings hurt.

So, keep looking and your agent can help you find the right home.

All the best,
Alma
0 votes
Gerard Carney, Agent, Spring Hill, FL
Wed Jun 15, 2011
Yes the property should be now listed as pending, and many pending will still take offers, such as short sales which demand that offers be taken even after you go into contract. You may have a short sale you are looking at.
0 votes
Debra B Albe…, Agent, Port St Lucie, FL
Wed Jun 15, 2011
In most MLS systems, Contingent (under contract) is an active listing until the contingencies are removed.

In a short sale, you have the bank approval contingency out there for awhile. It is still under contract. It is not a good idea (for many reasons) to make a back up offer. You could later end up with 2 contracts out there and be obligated to buy 2 homes or lose your deposit. Remember, no escrow depsit? It is not a contract.

Debbie Albert, PA
Keller Williams Treasure Coast
0 votes
Gg, Home Buyer, Sarasota County, FL
Tue Jun 14, 2011
Yes. She said that it has an inspection contingency which pretty much all contract have, but the status should change. I made a mistake of waiting 3 weeks after my first offer. I really feel that something fishy is going on though. I guess all I can do is report the ethics violation if I want to, although it will do little to help me. It just seems wrong. It keeps my wife's hope up for this home, yet deep down inside I feel that we have little chance as it will inspect well. Dirty agent though!
0 votes
Danielle Sha…, Agent, Cape Coral, FL
Tue Jun 14, 2011
The seller has the right to not accept any offers at their discretion. Situation does sound odd though. Has your agent talked to the listing agent's broker?
0 votes
Gg, Home Buyer, Sarasota County, FL
Tue Jun 14, 2011
This is not a short sale or REO.
0 votes
Gg, Home Buyer, Sarasota County, FL
Tue Jun 14, 2011
No. Just plain active. My agent is thinking about reporting the listing agent. Are they obligated to take offers if the home is still active?
0 votes
Danielle Sha…, Agent, Cape Coral, FL
Tue Jun 14, 2011
Does it show active, active contingent, active contingent short sale (or something similar)? All three are different. In Lee county our MLS dictates we mark the property ACSS once a seller accepts an offer on a short sale property but prior to lender approval. This is common practice.

Putting in a "real" offer isn't going to force the listing agent's hand if the seller has already accepted a contract and even in doing so there is no guarantee the seller's lender will ever see your offer. Smart short sale practice is to only submit one contract to the bank.

More info on this particular situation would be helpful.
Web Reference:  http://www.mysharphomes.com
0 votes
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