Katie Tan, Both Buyer and Seller in Fort Lauderdale, FL

What recourse do we as qualified buyers have against R/E Agents- Brokers whom low ball initial asking price of homes to initiate a bidding war?

Asked by Katie Tan, Fort Lauderdale, FL Mon May 13, 2013

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Debra (Debbi…, Agent, Livingston, NJ
Mon May 13, 2013
You have no "recourse" in regard to list prices, whether you deem them to be "low", high, or in a fair market range.

If a list price initiates a bidding war - so be it.

Sellers are free to strategize with their agents, and list wherever they want.
As was mentioned below, it's the sellers who decide on list price, NOT the agents.

Offer what you feel is a fair price to pay...in your comfort zone.

Best wishes..........
1 vote
Kevin Gallag…, Agent, Fort Lauderdale, FL
Sun May 19, 2013

Unfortunately, in today's market it is common practice for "listing agents" to list low in order to receive multiple offers. This tactic works quite often and will usually run the sales price considerably higher than the list price. As far as I know there really is no recourse, hopefully there will be a call for "highest and best" offers. This will be your final chance to out bid the rest. Your Realtor should be able to advise you of the fair market value.

Best of Luck
0 votes
Suzanne MacD…, Agent, Morristown, NJ
Fri May 17, 2013
None whatsoever. The seller's agent has a fiduciary duty to do the right thing for their seller, namely, to get the the best deal possible. If that means starting a bidding war, then they have done their job! If you really want the house, make your best offer and if you can't go higher than the next guy, then move on.
0 votes
Curly Sue, , Texas
Fri May 17, 2013
Why would you have any recourse? Just make your best offer.
0 votes
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Fri May 17, 2013
You can make a full price offer…

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
Web Reference:  http://jamessimms.com/
0 votes
Maria Batista, Agent, Jersey City, NJ
Fri May 17, 2013
Hi Katie. Although I am sure it's frustrating, in my opinion, you don't have any recourse. A seller is the one who decides what their home will be listed for after the Realtor provides them with comps and possibly some advice. A seller can list their property at whatever number they like. If the homes are being sold quickly and for more than the asking price, the Realtor in my opinion is doing their job as far as getting the house under contract quickly. If this tends to be the norm in Fort Lauderdale, I would do some research on what homes in the area are selling for so you don't keep getting disappointed.
0 votes
Chad Gray, Agent, Fort Lauderdale, FL
Fri May 17, 2013

For legal recourse options, you should contact an attorney.

As an experienced real estate agent, I do not see where you would have any recourse. After all, the seller can list his or her home for any price they would like. In the end, the market will determine the value of the home.

I can see where it might be frustrating to think you found a deal for your client, only to be outbid by someone else. The next time you find a deal, I suggest pulling comparable sales (comps). If the home is clearly listed below the comps, then prepare yourself for a bidding war and advise your clients accordingly.

Best of luck!

Chad Gray PA | Realtor
Luxury Living Fort Lauderdale
(at Coldwell Banker Residential Real Estate)

100% of clients rated our service as "EXCELLENT"!
0 votes
John Bourassa, , Fort Lauderdale, FL
Wed May 15, 2013
Last Friday, I listed a property East of Federal HWY in Pompano Beach. A 3 BR - 3 bathroom, 2,360 total sq. ft., 2 car garage remodeled in 2007 in 2007 with new gorgeous custom designed kitchen, hurricane impact windows and doors, new vinyl fence, pool completely redone with waterfall and outside pool patio done with sealed Travertine pavers carrying inside the new hurricane impact frame screened-in patio and tons of other improvements. I presented seller with comps based on recent sales. My seller bumped up my suggested price by $25K and I listed the property.

An identical model home, 3 houses away from my seller is very clean, with 3 bedrooms, 3 bathrooms, a plain pool, 2 car garage, but it has only a new kitchen. That house is listed $20K more than mine and it has been on the market for 5 months already and is still for sale.

My house had 15 showings in 3 days and my seller received signed 3 offers. Lets say, Katie, that if my property would have been priced $25K to $40K more that it's immediate competitor that I mentioned above, you would probably have not wanted to see my seller's house in the first place and you would have probably have been the first buyer to present an offer based on the comps that your agent would have shown you which offer would be considered by my seller a low-ball offer and reject your offer.

Barbara Easton-Irving described it best below: The seller's agents provides comps and the buyer's agent also provides the same comps (unless one of the two agents fabricated the comps).

Besides, the inventory now is very low making the selection extremely difficult for buyers which is like going to the biggest sale of the year at Macy's one weeks later. What's left on the shelves, nobody wants, anyway. The properties that don't sell now is because they are priced too high and their quality or lack of improvements are mediocre. And because of that market, it is very difficult and frustrating for buyers.
0 votes
Barbara East…, Agent, Pompano Beach, FL
Tue May 14, 2013
The Sellers, not their agents, chose the asking price after the listing agent provides comps and recommedations. The Buyers, not their agents, chose their initial asking price after the buyers agents provide comps and recommendations. Recourse = None!
0 votes

Great answer!
Flag Wed May 15, 2013
Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Tue May 14, 2013
First of all, why would you try to get these agents in trouble? I'm not the biggest fan of realtors, but if I were a seller in this market, I'd want my realtor to do just that, start a Bidding WAR!

Yes, start a Bidding WAR!!! These prices are going up fast in FL and if you're not ready willing and able to step up and pay top dollar, then step to the side because there is a line in back of you this is!

Thankfully, Obama has not been able to socialize the buying and selling of real estate yet! Its still a free market and in free markets sellers are allowed to sell for as high as they can!

However, if you are not a cash buyer, and a mortgage loan is in the mix, there is an "Equalizer" called the Appraisal.

My suggestion is get Pre-Approved, put 5% to 10% in escrow and make the offer that will secure the deal and make it subject to the appraisal.

0 votes
Mack McCoy, Agent, Seattle, WA
Mon May 13, 2013
Katie, you'd have to ask an attorney as to what your legal rights are, but I'm wondering what you feel the need to have recourse over.

When it comes to auctions, I've never heard a complaint that the starting price was much lower than the strike price; why do you feel this way about a property price?
0 votes
Marsha Umans…, Agent, Tamarac, FL
Mon May 13, 2013
Regardless of the asking price, in a Seller's market with mutipe buyers competing for the same property you shoud aways submit your 'highest and best'. You have no recourse against another qualified buyer who thinks the same property is worth more than what you think it is worth, and is able to pay the price.
0 votes
Annette Law…, Agent, Palm Harbor, FL
Mon May 13, 2013
Offer 'Fair Market Value' in your purchase agreement with minimal contingencies.
A willing and able buyer (qualified) and willing seller will establish the value of the home through their negotiations.
If, however, a willing and able buyer is UNWILLING to compete, (or negotiate) you may need a different home buying strategy. That strategy means offering above "Fair Market Value."
Be aware, the R/E Agent nor the Broker set the selling price, THE OWNER DOES!
Professionals work at the behest of the home owner or buyer. They do not set the list price just as agents do not dictate to a buyer what to offer in the purchase agreeement. Professionals provide guidance, but the decison always resides with the owner or buyer.
0 votes
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