My real estate agent strongly advised me on this house to buy but he and his family want to rent it from me after I buy it.

Asked by Greenbus, 21093 Mon Jul 25, 2011

I do invest in real estate, he is my agent for 2 years, his wife is the broker. How do I know this is really as good as they say? Or is it good for them? I am thinking, why don't they buy it if its so great? Is this too close for comfort? Is it legal for them to get commission and then be renters? Thinking its time to ditch them but would still appreciate any advice/opinions.

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7
Gerard Carney, Agent, Spring Hill, FL
Mon Jul 25, 2011
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I would think if it were Really a good Deal and they are both in Real Estate, they would have swooped this up themselves, and the cost would be cheaper than renting! Seems they want the commission from you buying it and then will ask for a low rent option so it will cost them near nothing, and you everything!
0 votes
Temi Akojie, Agent, Upper Marlboro, MD
Mon Jul 25, 2011
Your agent has a fiduciary duty to always look out for your best interest. Its can of hard to say whether they're acting in your best interest if they want to rent it later on. However, it may be a win win. You have to treat him like any other tenant you want renting your property. You need to see credit scores ahead of time, paystubs, W-2's and see if they can even really afford to rent the home and find out what their current rental history is for the last 2 years.
I think once you see him as a possible tenant vs your realtor things will start to clear up a lot more. If the answers come back shaky then its best he stay your Realtor and not your tenant.

Remember, a lot of people are downsizing, they got in way over their heads during the boom and he/she may have been one of them. It doesn't necessarily mean ditch them unless you are seriously uncomfortable. You have to have some level of trust with your Realtor.

Temi Akojie
Keller Williams Preferred Properties
Direct:301-337-7325 (REAL)
Office:240-737-5000
Fax: 240-296-5140
http://www.buyorsellbowiehomes.com
http://www.realhomesbytemi.com
REAL market, REAL agent, REAL results
0 votes
Bill Eckler, Agent, Venice, FL
Mon Jul 25, 2011
Green,

If you are seeing "red flags" with this opportunity, it would be advisable to go with your feelings at least to the point of seeing things more clearly.

Our advice....slow the process down without commiting to anything until you are comfortable with the direction this is going.

Good luck,

Bill
0 votes
Laura Feghali, Agent, Stamford, CT
Mon Jul 25, 2011
Hello Greenbus,
Yes, it does sound like a conflict of interest since your agent wishes to rent the property once you purchase it. It sounds as if he is working in his best interests; not yours.

And...yes, it would be legal for your agent to collect commission on the sale if he is representing you in the purchase.

Good luck!

Laura Feghali
Prudential Connecticut Realty
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Mon Jul 25, 2011
I find what I feel are good deals now and then and I can get pretty excited about a property I feel is a super deal. I don't find them everyday or every month, but I do see one now and then. Gerald, I wish I could buy them all, but I can't - maybe you can. Just because your agent doesn't buy it does not mean it's not a deal.

What bothers me more is your comment that they "strongly advised" you to buy it. I avoid that myself, I 'll show you homes, give you my comments and suggestions but it is your decision and I am not going to strongly advise. If it's a good property and they seem like good renters it could be a win win for you. but it's hard for us to say from here.
0 votes
Phil Rotondo, Agent, Melbourne, FL
Mon Jul 25, 2011
I don't think that any opinion is going to sway what you have already decided.
Go with your gut; and don't second guess it.
Web Reference:  http://www.321property.com
0 votes
Trevor Hunti…, Agent, Port ludlow, WA
Mon Jul 25, 2011
Well it would be a definite conflict of interest to be lobbying for the purchase of a specific home and then asking to be a renter as it could indeed cloud the judgement/motivation of the agent involved. That is not to say it is but clearly it has made you uncomfortable and in my opinion this is not good business practice and you may be on the right track by considering finding another agent.

Best of luck,

Trevor
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