Realtor Lying about Accepted Offer?

Question

Hello,

I noticed one property came up for sale at $40K in the morning, an amazing deal, and another two came up for $40K each later in the day as well from the same bank / same seller's agent (probably foreclosures from the same investor?). I sent an email wanting to see the property right in the morning, but I get an email late at night saying all three have accepted offers from the same person. How is this possible? The guy would have to see the properties, put in the offers, and have it accepted, all within ~6 hours before the bank closes?  It's less than a day on market; I heard from an agent I know that this is common practice, an agent lying about an accepted offer?

What should I do? I have the cash to buy one for a little over asking, and I would like to still see the place / offer on it. Do you believe the agent is lying? Because I have a hard time believing this all happened in that short of a time frame.

Please advise!

Wayne Brooks · Answer

The agent had one of their regular buyers lined up before it was listed.

Lynn Bown · Answer

I am an agent in a very competitive market for investors as well.  This happens all the time.  I am looking for new listings for a handful of investors usually at the pre-foreclosure stage and with absent owners.  My investors and I have our criteria down, financing in place, and I know the area well and have already done ARV estimates.  I actually call the companies servicing the property in pre F and find out who the agent is that will list the property.

When the Agent lists the property I have a contract already signed with my offer ready with proof of funds.  I just add the date and submit or If I can get to the agent before they list I submit and they list it, submit my offer, and take it pending all at the same time.

If your market is competitive for investment properties, this is very common.  Start looking at the pre foreclosure lists in the county records and "Stalk" the properties.  Also Absentee owners are a good source of motivated sellers, send them post cards, yellow letter, follow with formal letter.  Get a proactive investment agent.

Dont hate the player, get ahead of the game.

BTW an agent could lose his/her license for taking an property pending in the MLS with no "real" offer, so im sure it is one of the many options that could have taken place above, rather than lying about it.

Chad U. · Answer

This happens ALL the time in South Florida.  Usually banks will want to see if they get multiple offers, and then instruct the agent to ask for Highest and Best.  However, oftentimes the buyer is already lined up who's seen the property in advance and will submit his offer with no contingencies and quick cash close = bank accepts.

Karen O. · Answer

Consider contacting your own agent, not the listing agent.  My story: Came across a listing on a Sun. Called listing agent on Mon who said property was already under contract.  Another realtor called me about inquiry.  I told her what I'd already been told but didn't understand.  She said she'd check and call me back.  She calls on Tues.  Said the listing agent lied. The property is going to auction in a week. On day of auction, she calls and asks what time to meet.  I thought she'd represent me.  No. This is an on-site auction.   I ran home, grabbed a change of clothes and drove 3 hrs to get there in time. Met her and contractor to do walk thru.  An hour later I was under contract for $8.5k less than my max.

Patrick Liska · Answer

Either they are buying it, have a connection with someone that they told before you knew it was on the market and they put an offer in as soon as it hit the market, or they did just that and put an offer in right away without even seeing it, that would be someone that really knows the market there.

Adam Bartomeo · Answer

@Raimonds Lauzums

Although, there are lots of unethical realtors in this business ( this is why I got my license and I'm able to help people like yourself) I think this scenario can be explained in several ways.

1.  Real estate is more of a relationship business and most people think. Like someone stated above, there's a good likelihood that the listing agent already reached out to a buyer before the properties came on market.

2.  Personally, I have put in lots of offers and had those offers excepted without ever seeing the property. There isn't a need to see  A property as long as there is a contingency to back out. The most important thing you can do is get the house under contract and lock it up. The inspection clause is enough for you to do this.

3.  On REO properties, I have often put in back up offers even when a  property is under contract. Sometimes those contracts fall through and I am the next in line.  My offer is normally excepted in less than an hour of the property being relisted.

I hope this helps.

Karen O. · Answer

That's what the 2nd broker told me as well.

Russell Brazil · Answer

I wrote an offer this week on a property that was on market for one hour and it was already under contract.

Realtor Lying about Accepted Offer?

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