unethical listing agent - maybe

[Don Chambers]

I frequently offer on bank owned properties in the MLS through my agent. There is one listing agent that always says the seller responds with highest and best. I used to give highest but now I just withdraw the offer. Then I'll notice the house does not sale and sometimes has a price drop lower than my offer. This happens over and over, but not nearly as often with other agents.

I think it's either a lie, or he tells his investor to offer and it's a legitimate highest and best.  Then his investor just offers a little over my highest.

If I'm right, is this illegal or unethical?

I'm tempted to just offer through the listing agent who does this.  I hate to do that because it rewards his deceit and hurts my agent.


I have no proof.  Is there anything I can do?
I wish I could find out who the other offerers are.  It would be meaningful if it's the same person each time.  It's probably easy to show a pattern if I saw the data - or to see that I'm wrong.

[Russell Brazil]

When a property is an REO...if there are 2 offers, standard operating procedure is to request highest and best....this is a policy almost every bank has or govt entity has in place, not the agent. Just because there are 2 offers, and they are offering their highest and best does not mean that the price meets the price that the bank asset manager is looking for.

REO agents have almost no decision making ability on a property. They are really just glorified property managers. Most of them list these properties for a flat fee, or a highly reduced commission. They also can not collect a commission from the other side for most banks.

Many times with REOs the asset manager will even change half way through, and the new asset manager might order a new BPO and start from scratch...so a property that could have been had at X last week, will now require $25k more later on.