Originally posted by @Dan H.:
Here is what I think is unethical. A few years ago I make an over ask offer ($25K over ask which was a little less than 5% over ask) on a property that I wanted (A multiplex in an area with very few multiplexes and perhaps the best school district in the state). I never got a response. My realtor informed us that the selling realtor provided the buyer. The sold price was virtually my offer price. I was willing to go up higher on the price as well as remove most contingencies and am convinced that if given the opportunity I was willing to out pay the eventual purchaser (I would have considered going up another $50K even if it could not be financed at that amount - obviously I was willing to remove the finance contingency). In this case, the seller got less than they would have and I did not get a property that I wanted enough that I was willing to pay significantly over asking price and possibly over appraisal price. Who benefited? The eventual buyer a little bit but the realtor benefitted the most and did not take the best care of the seller. I have no way to know for sure that my offer was presented to the seller but even if it was, because the sold price was basically my offer price, the realtor could easily convince the seller that the other offer was in some way superior to my initial offer. I was very surprised that we did not hear back from the seller's realtor and more surprised when I saw what the RE sold for (I could understand if it sold for $50K more than my offer that the buyer may have placed an very short time out). I view a realtor increasing his pay at the expense of the seller to be unethical.
I just had the identical problem with a RE agent in New Hampshire (NH). The Sellers agent was smug and was misinformed about the property unfortunately I made the mistake of correcting him during the open house in front of other buyers, I didn’t mean anything malicious with my comment but apparently the seller’s agent took it that way. I put in an offer $25k over list price because the RE agent mentioned in the open house that he had a “Reasonable cash offer already on the table” I was ready to negotiate and go $55k higher but he never even got back to my agent. When I asked my agent to call him, he did and the seller’s agent told mine that he didn’t want to do business with my kind, I almost took it as a racist comment but I kept my cool and let it slide. Long story short the buyer’s property sold for list price, the buyer didn’t even see my offer because of his smug agent and too boot the sellers agent just happened to have a buyer of his own (Double commission for the sellers agent)
TL:DR the sellers lost an offer with a guy with deep pockets willing to go almost $80k over ask because of his smug, and maybe a little racist, agent (mind you this property would still cashflow at my inflated offer price.)
