Buyers agent lying about price?

Question

Currently looking at a foreclosure condo listed at 180,000 but probably really worth 200k-220k range. My agent says their are multiple bids on the condo with the highest being at 195,000. The house has been on the market at the 180k price since November of 2018. My questions are;

1. Can the buyers agent increase the price since they know we like the property to ultimately get a higher commission?

2. Is it legal for the agent to disclose the highest offer on a foreclosure?

3. Should I go directly to the listing agent ( found on realtor.com) to find out why the property has been listed at 180k since November and why the bank hasn’t pulled the trigger on any offer?

Jay Hinrichs · Answer

it is amusing to me when folks think realtors control pricing simply to make bigger commissions but the people saying that never know or run the math.. its usually peanuts in the commish delta.. as stated no agent I know would even consider thinking they need to raise the price so they get more commish.. its just not anything that enters an agents thought process.. at least none of the agents who have ever worked for me over the years.

Account Closed · Answer

@Michael Spindler Your agent should be on your side, it doesnt appear they really have an incentive to lie to you like that. A $15k increase in price on their commission would be like $450 if theyre getting 3% assuming theyre even getting that (totally not worth it to get in trouble over). Use your agent, have her ask the listing agent on the status with the bank and also ask if she/he is familiar with an escalation clause.

Frank Wong · Answer

1. It sounds like your agent got you the information that you need to get your offer accepted and is doing a great job.2. Listing agents can disclose whatever the information the seller instructs them to. 3. Just because it been on the market doesn't mean your buyer agent is lying to you. Maybe it's on the market still bc the bank is holding out for their price. Banks do whatever they want they don't need to sell at this time. Doesn't work the same way as a normal seller which has a pressing need to get their money.4. Don't go to the listing agent. The LA represents the seller not you and you have representation already. You may just lose out on the deal by doing that.

Wayne Brooks · Answer

The buyers agent is relaying info given to them by the listing agent....they’re not making it up.

Ron S. · Answer

Thanks for the clarification. Agreed. if we own it, we look at cash way more favorably, all things being equal. Yes, at the end of the day, they are all cash transactions to us. If I have a property for sale at $200,000 that I have no intentions of rehabbing or fixing up or paying for any section 1 repairs, I won't even look at an FHA or VA offer if I have a conventional or cash offer, even if lower materially. When an offer comes in, I've already done my due diligence. I have an inspection so I know what it's gonna take to go FHA or VA. If my repairs for example say $10,000, i'll take $190,000 or even less in some cases with a fast, easy close with contingencies. I already know fair market value and I've already done the net calculations. Totally agree with you on that scenario. We like fast closes, cash, with no contingencies.

Frank Wong · Answer

haha, so true. That money is chump change. Sell your character for peanuts.

Lynnette E. · Answer

I was referring to a foreclosure where the bank actually owns the property. When the bank owns the property they want to enter into a contract that will close so less co tingencies, cash are nice to offer was the point.

Ron S. · Answer

Banks don't have any input or opinion one way or another on an open market transaction between a buyer and a seller and/or their agents.

Lynnette E. · Answer

Also with foreclosures, the banks want a house to close if they enter into a contract. Price is NOT the main concern, its that the deal will close.So, keep the price you want, but make it a cash deal, no inspection, no loan or any other contingency. That is what will be selected for the contract, not the best price.And the highest bid may have a low down, FHA financing, which the house will not qualify for, etc. You never know the whole picture.

Kristina Taylor · Answer

@Michael Spindler you could offer 180 (or whatever you feel is a fair price) and put in an escalation clause that you will pay 500 more than the highest offer up to a maximum. You’ll find out one way or the other because they’ll have to show you the highest one if you are the winning bid. It’s unlikely a realtor is lying although I find it strange they would disclose the highest current bid. I don’t believe that is legal and they could lose their license. At least in this state.