Real estate agent reluctant to show offers to the seller prior to decision

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Topic Author
nss20
Posts: 24
Joined: Wed Jan 01, 2020 1:36 pm

Real estate agent reluctant to show offers to the seller prior to decision

Post by nss20 »

We are selling some real estate. The location is fantastic and it's a hot market. Our real estate agent has received many offers within a week, all of them higher than the asking price. We need to decide quickly. The agent has created a summary for us. However, it doesn't contain all of the information such as the amount of pre-approval, appraisal contingency, etc.

We asked to see the actual offer documents and it is proving difficult. We had to ask to get the initial set of offers, that we finally received. Now we are being told that offers that came later will take time to send. The agent also claims that he/she hasn't had to send this information in past dealings with other sellers.

I am looking to understand the behavior. Some possibilities:

1. Our agent thinks that by seeing the offers, we will make a biased decision based on other information that we glean.
2. Our agent thinks that we will use the names of the prospective buyers to try to contact them directly.

We are baffled by the reluctance. I am looking for insights that anybody can provide.
mhalley
Posts: 8981
Joined: Tue Nov 20, 2007 6:02 am

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by mhalley »

I am no expert, but isn’t it the realtors job to examine all the offers and present the best one to you? Why are you trying to micromanage them? I’ve never actually sold a home,only bought so I am ignorant in this area.
adamthesmythe
Posts: 4221
Joined: Mon Sep 22, 2014 4:47 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by adamthesmythe »

The guy works for you. Tell him that you will be getting the offers from him by tonight or you will be having a talk with his supervising broker.

There may be some reason he doesn't want to do this or maybe most clients don't ask for all the offers. At minimum there is a failure to communicate.
User avatar
RickBoglehead
Posts: 6729
Joined: Wed Feb 14, 2018 9:10 am
Location: In a house

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by RickBoglehead »

adamthesmythe wrote: Thu Jun 10, 2021 4:42 pm The guy works for you. Tell him that you will be getting the offers from him by tonight or you will be having a talk with his supervising broker.

There may be some reason he doesn't want to do this or maybe most clients don't ask for all the offers. At minimum there is a failure to communicate.
This ^^^.

Or fire him.
Avid user of forums on variety of interests-financial, home brewing, F-150, PHEV, home repair, etc. Enjoy learning & passing on knowledge. It's PRINCIPAL, not PRINCIPLE. I ADVISE you to seek ADVICE.
sailaway
Posts: 3279
Joined: Fri May 12, 2017 1:11 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by sailaway »

mhalley wrote: Thu Jun 10, 2021 4:40 pm I am no expert, but isn’t it the realtors job to examine all the offers and present the best one to you? Why are you trying to micromanage them? I’ve never actually sold a home,only bought so I am ignorant in this area.
In many jurisdictions the agent is required to take all offers to the seller.
123
Posts: 7412
Joined: Fri Oct 12, 2012 3:55 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by 123 »

Perhaps the agent is only showing offers where s/he is on both sides of the deal (representing seller and buyer). Or the firm s/he is with is on both sides. If you saw the complete written offers sometimes things like that stand out.
The closest helping hand is at the end of your own arm.
Broken Man 1999
Posts: 6296
Joined: Wed Apr 08, 2015 11:31 am
Location: West coast of Florida, inland on high ground!

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by Broken Man 1999 »

Do you have a lot of contingencies on the listing, maybe they are weeding some of the offers out.

Does seem odd. It seems getting the offers accepted would put money in their pocket quicker.

I might call the broker and ask what is going on.

We have never dealt with a RE agent. We bought our first house from the builder, traded it in to the builder of our current home.

Can't say I would want to ever have the RE agent experience, based on discussions here. I am sure there are many decent agents doing the right thing, not trying to condem all of them.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go." - Mark Twain
User avatar
Elric
Posts: 416
Joined: Sat Dec 08, 2018 12:23 am
Location: Virginia
Contact:

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by Elric »

mhalley wrote: Thu Jun 10, 2021 4:40 pm I am no expert, but isn’t it the realtors job to examine all the offers and present the best one to you? Why are you trying to micromanage them? I’ve never actually sold a home,only bought so I am ignorant in this area.
No, it's not. You decide which is the best offer, which can certainly be based on the recommendation of your agent. There's more to it than just price and how you weigh factors depends on your circumstances.
"the remedy to be applied is more speech, not enforced silence." Supreme Court Justice Louis Brandeis
User avatar
galawdawg
Posts: 2432
Joined: Thu Dec 14, 2017 12:59 pm
Location: Georgia

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by galawdawg »

Your agent should be presenting you with every single offer. The actual offer, not a "summary" or just the price. All of the terms in the written offer by the buyer are important. As you note, only by reviewing each of the contract terms in each offer can you decide which of the offers you wish to accept, if any. Some sellers will take a lower cash offer than a higher offer with a financing contingency. Some prefer a quick close rather than a sixty-day close at a higher price. A seller cannot truly evaluate an offer without reviewing ALL of the terms.

As an attorney, it would be impossible for me to provide any meaningful advice or informed guidance to a client without seeing each actual written offer in its entirety.

Perhaps your agent is trying to be helpful by not sending you all of the offers or if you want to be cynical, perhaps they are focusing on offers from unrepresented buyers which can double their commission since it is not split. The reason doesn't matter. Tell your agent to send you ALL of the written offers and give them whatever deadline you wish. If the offers were electronically transmitted to your agent, it doesn't take more than a minute to forward it to you via email. If it is on paper, a couple of minutes to scan and email each offer. But there is really no excuse for them to hesitate or delay. If your agent pushes back or won't comply, call their broker.
lazynovice
Posts: 1513
Joined: Mon Apr 16, 2012 10:48 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by lazynovice »

We have received a copy of every offer when we sold our houses. Our last sale was a multiple offer scenario. It was not as simple as just naming a price. There were offers of extended closings, different escrow deposits and different contingencies. We have friends who got free rent from their buyers. Their realtor did not get commission on the free rent. I would not want someone who gets paid a % of sales price to ignore all other factors that matter to me.
“I didn’t want my sailboat to be in the driveway when I died.” Nomadland
BillWalters
Posts: 213
Joined: Sun Aug 11, 2019 5:21 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by BillWalters »

I remain astonished this industry hasn’t been disrupted.
mkc
Posts: 613
Joined: Wed Apr 17, 2013 2:59 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by mkc »

Unless you have provided instructions in your listing contract to the contrary, a listing realtor is required to present all offers. It's actually in the Realtor Code of Ethics, Article 1, Standards of Practice 1-6.

The REALTORS® Code of Ethics: Articles 1, Standard of Practice 1-6 - "REALTORS® shall submit written offers and counter-offers objectively and as quickly as possible."

For reference, our local MLS site has details https://www.kaarmls.com/presenting-offers-purchase

I would call the broker immediately and consider filing a complaint with NAR https://www.nar.realtor/about-nar/gover ... nformation
User avatar
ResearchMed
Posts: 11813
Joined: Fri Dec 26, 2008 11:25 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by ResearchMed »

mhalley wrote: Thu Jun 10, 2021 4:40 pm I am no expert, but isn’t it the realtors job to examine all the offers and present the best one to you? Why are you trying to micromanage them? I’ve never actually sold a home,only bought so I am ignorant in this area.
galawdawg gave a very good explanation.

But a shorter version is: How could the agent knew what YOU, the seller, consider to be the "best" offer?

Someone may prefer the highest price, even if the closing date was a few months out.
Someone else might actually prefer a closing date that is further out.
Someone else might prefer an offer without an inspection contingency, even if the price is lower.
Someone else may not want any financing contingency, only all "cash".
And someone else may prefer an offer that includes a higher amount of earnest money.

That is up to the seller to decide... what works "best" for *them*, not for an agent and not for "average other sellers".
There is no "micromanaging" involved in needing to see all of the offers to make a decision that works best for "you".

RM
This signature is a placebo. You are in the control group.
sandan
Posts: 156
Joined: Wed Apr 03, 2013 12:48 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by sandan »

Deleted.
Last edited by sandan on Thu Jun 10, 2021 7:29 pm, edited 1 time in total.
Johnny Thinwallet
Posts: 208
Joined: Wed Nov 21, 2012 6:07 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by Johnny Thinwallet »

BillWalters wrote: Thu Jun 10, 2021 5:02 pm I remain astonished this industry hasn’t been disrupted.
Yep, I feel the same way.

To the OP, you absolutely should be seeing every full, complete offer for every bid on your house. Nothing less. And if you do not them tonight then I'd be calling the main office first thing Friday morning to speak with the upper management in that brokerage office. Additionally, by that point whatever you communicate to the upper management by phone I'd also suggest sending in a written email (and possibly a certified letter, if it came to that).
demdeah26
Posts: 10
Joined: Mon Mar 29, 2021 8:26 am

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by demdeah26 »

BillWalters wrote: Thu Jun 10, 2021 5:02 pm I remain astonished this industry hasn’t been disrupted.
Are you kidding? Redfin and several other listing sites have exploded in recent years to facilitate FSBO or avoidance of realtors.

And OP, I would politely ask (demand) all offers in full by end of night along with an explanation why they are giving any hassle about that. If your agent doesn’t produce both I would fire him, contact the brokerage, all while trying to avoid paying him anything once you accept the best offer.
Northern Flicker
Posts: 7810
Joined: Fri Apr 10, 2015 12:29 am

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by Northern Flicker »

I think it would be customary for the listing agreement to state that the listing agent is required to present all offers to the seller as a contractual obligation.
My postings are my opinion, and never should be construed as a recommendation to buy, sell, or hold any particular investment.
rascott
Posts: 2674
Joined: Wed Apr 15, 2015 10:53 am

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by rascott »

I have never heard of such nonsense. It's a Realtor violation to not present all offers to a seller.

Also it takes about 5 seconds to forward the offer, since virtually all offers are submitted via email.

Something very fishy going on here.
vfinx
Posts: 83
Joined: Thu Apr 19, 2018 9:35 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by vfinx »

I ran into this exact same situation with our recent home sale. It was honestly baffling to me why I faced so much resistance when I asked for full documentation. I had to very sternly explain that I want it all, immediately. After that they just sent me a zip file.

My best guess is that my agent felt like flooding me with all that info would lead to confusion and wanted to steer me towards a particular offer. It’s also more work for them to answer a bunch of questions from the seller about the intricacies of each offer. But that’s the darn job as far as I’m concerned.

We did not use that same agent when we had another transaction just a few months later.
congruentsea
Posts: 20
Joined: Sat Dec 15, 2018 1:01 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by congruentsea »

BillWalters wrote: Thu Jun 10, 2021 5:02 pm I remain astonished this industry hasn’t been disrupted.
Many years ago, I was slightly underwater in a house and another $15k for agent commissions was a stretch. A friend who is an agent, (he also wanted to list the house) told me if I teach you how to do FSBO you will never use an agent.... he was right
User avatar
unclescrooge
Posts: 5702
Joined: Thu Jun 07, 2012 7:00 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by unclescrooge »

123 wrote: Thu Jun 10, 2021 4:47 pm Perhaps the agent is only showing offers where s/he is on both sides of the deal (representing seller and buyer). Or the firm s/he is with is on both sides. If you saw the complete written offers sometimes things like that stand out.
This is my thought too.
stan1
Posts: 10201
Joined: Mon Oct 08, 2007 4:35 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by stan1 »

In some states realtors are going to redact personal information about the buyer (such as surname, gender(s), marriage status) to ensure compliance with federal and state fair housing laws and other statutes. There are laws, there are brokerage policies, and there are realtor preferences (often guided by having a bad experience or advice from an attorney with a horror story). Some realtors will not forward personal notes or photos provided by buyers.

The offer itself may not be provided but the summary absolutely should include information like amount of pre-approval, contingency waivers, down payment, financed or all cash. These are part of the seller picking the best offer. There is no law that says the seller has to pick the highest offer.

I asked my agent once for the occupation of the potential buyer. Reluctantly he told me one was a sales engineer and the other were husband and wife attorneys at the county prosecutor's office. Fortunately the engineer had the higher offer and the attorneys offered under asking. A third buyer asked us three times if anyone had ever died in the house (answer was no all three times) but made clear to me I would not want to be involved with her in a business deal.

Sometimes I think there are a lot of misunderstandings on these real estate agent threads that can be resolved with communication between the buyer/seller and their realtor.
Last edited by stan1 on Thu Jun 10, 2021 9:00 pm, edited 1 time in total.
Normchad
Posts: 2527
Joined: Thu Mar 03, 2011 7:20 am

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by Normchad »

stan1 wrote: Thu Jun 10, 2021 8:54 pm In some states realtors are going to redact personal information about the buyer (such as surname, gender(s), marriage status) to ensure compliance with federal and state fair housing laws and other statutes. There are laws, there are brokerage policies, and there are realtor preferences (often guided by having a bad experience or advice from an attorney with a horror story). Some realtors will not forward personal notes or photos provided by buyers.

The offer itself may not be provided but the summary absolutely should include information like amount of pre-approval, contingency waivers, down payment, financed or all cash. These are part of the seller picking the best offer. There is no law that says the seller has to pick the highest offer.

I asked my agent once for the occupation of the potential buyer. One was a sales engineer and the other was an attorney at the county prosecutors office (husband and wife both). Fortunately the engineer had the higher offer and the attorneys offered under asking.

Sometimes I think there are a lot of misunderstandings on these real estate agent threads that can be resolved with communication between the buyer/seller and their realtor.
I was thinking it was this. Or maybe a fear that the seller would try to cut a side deal directly with one of the buyers. I’m not completely sure if I’ve ever seen the actual offers when I’ve sold a house. I don’t think I’d actually be interested in seeing them, really. The summary data is good enough for me.
Freetime76
Posts: 514
Joined: Wed Jun 26, 2019 8:26 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by Freetime76 »

BillWalters wrote: Thu Jun 10, 2021 5:02 pm I remain astonished this industry hasn’t been disrupted.
Yes.
And in that market, selling is like shooting fish in a barrel, allowing this realtor to make money even with this ridiculous behavior.

OP: I can’t imagine not seeing the actual, signed offers...in pdf/scanned form via email.
How hard is it to forward an electronic document? :oops: :annoyed

I want to review the details myself, not have a less vested party - with no fiduciary responsibility and certainly less personal feelings about the sale - do it for me (supposedly- and I would be comparing the spreadsheet with the real offers, just out of curiosity). I can’t believe other clients allowed this.
User avatar
BolderBoy
Posts: 5702
Joined: Wed Apr 07, 2010 12:16 pm
Location: Colorado

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by BolderBoy »

BillWalters wrote: Thu Jun 10, 2021 5:02 pm I remain astonished this industry hasn’t been disrupted.
In the 2000s the AG of Illinois said he was going after ReMax (under the RICO statutes I think.) The billionaire owner of ReMax said that he'd spend every nickel fighting him.

Never heard anymore about it.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect
valleyrock
Posts: 225
Joined: Sun Aug 12, 2018 7:12 am

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by valleyrock »

I was astonished to learn after the fact that offers to buy a family house included letters from the people making the offers. In the midst of the negotiations, these letters might have been helpful to me in evaluating the offers and negotiating. But my agent never mentioned these letters in which people gave reasons for wanting the house.

I suspect this happened out of laziness. If the letters were passed on to me, the agent would have had to read them.

One lesson here might be to add in language to the contract with a brokerage firm that they will promptly provide all information from bidders, to include all offers, contingencies, letters, etc. Even if it's supposed to happen, having this requirement written in and in front of them might help agents know what they must do.

I mostly have done FSBO sales and purchases. All that's needed is a good real estate attorney, especially when buying, of course. Set them up in advance.

I recall learning a while back that in Madison, Wisconsin a small outfit set up a website for sellers to list their houses for a flat fee of a few hundred dollars. It became very popular. Indeed this is an "industry" ripe for disruption, for a number of reasons.
Last edited by valleyrock on Thu Jun 10, 2021 9:13 pm, edited 3 times in total.
stan1
Posts: 10201
Joined: Mon Oct 08, 2007 4:35 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by stan1 »

Normchad wrote: Thu Jun 10, 2021 8:59 pm Or maybe a fear that the seller would try to cut a side deal directly with one of the buyers.
Contract between seller and their agent would address this. If agent brings a buyer and seller negotiates a side deal with buyer within a certain amount of time commission to agent is still owed.
stan1
Posts: 10201
Joined: Mon Oct 08, 2007 4:35 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by stan1 »

valleyrock wrote: Thu Jun 10, 2021 9:09 pm I was astonished to learn after the fact that offers to buy a family house included letters from the people making the offers. In the midst of the negotiations, these letters might have been helpful to me in evaluating the offers and negotiating. But my agent never mentioned these letters in which people gave reasons for wanting the house.

I suspect this happened out of laziness. If the letters were passed on to me, the agent would have had to read them.
Nope likely not laziness, it is most likely "on advice of legal counsel" or "against my brokerage's policies" (which also is on advice of legal counsel).
valleyrock wrote: Thu Jun 10, 2021 9:09 pm One lesson here might be to add in language to the contract with an brokerage firm that they will promptly provide all information from bidders, to include all offers, contingencies, letters, etc.
Varies by states, but many states use a standard contract template with minimal changes not bespoke custom contracts.

Some people are probably best off FSBO with their attorney, others don't want to do that.
valleyrock
Posts: 225
Joined: Sun Aug 12, 2018 7:12 am

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by valleyrock »

stan1 wrote: Thu Jun 10, 2021 9:13 pm
valleyrock wrote: Thu Jun 10, 2021 9:09 pm I was astonished to learn after the fact that offers to buy a family house included letters from the people making the offers. In the midst of the negotiations, these letters might have been helpful to me in evaluating the offers and negotiating. But my agent never mentioned these letters in which people gave reasons for wanting the house.

I suspect this happened out of laziness. If the letters were passed on to me, the agent would have had to read them.
Nope likely not laziness, it is most likely "on advice of legal counsel" or "against my brokerage's policies" (which also is on advice of legal counsel).
valleyrock wrote: Thu Jun 10, 2021 9:09 pm One lesson here might be to add in language to the contract with an brokerage firm that they will promptly provide all information from bidders, to include all offers, contingencies, letters, etc.
Varies by states, but many states use a standard contract template with minimal changes not bespoke custom contracts.

Some people are probably best off FSBO with their attorney, others don't want to do that.
Sure, agents all use the same contract, but there's always a place to add things at the end. If it's something they're required to do anyway, they might should be fine with it, and now it's basically underlined.

Why would it be improper or illegal for an agent to provide letters accompany offers to the sellers? Can't sellers know the names of people making the offers, anyway.. they'll see names on the offers, of course. Unless it's a corporation. Companies are snapping up real estate.
protagonist
Posts: 7146
Joined: Sun Dec 26, 2010 12:47 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by protagonist »

I sold a condo in FL FSBO in 2018....hired a company that puts your listing on MLS for a fixed price and provides you with a lock box for showings, hired a local RE photographer, hired a lawyer. I offered buyer's agents their going commission rate (i forget-2 or 3 percent). It was a bit more hassle than having a seller's agent but I saved thousands in the process. and my condo sold just as easily.
Northern Flicker
Posts: 7810
Joined: Fri Apr 10, 2015 12:29 am

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by Northern Flicker »

valleyrock wrote: Why would it be improper or illegal for an agent to provide letters accompany offers to the sellers? Can't sellers know the names of people making the offers...
It is not illegal, but it increases the risk of running afoul of fair housing laws. My view is that it is in your interest not to see the letters.
My postings are my opinion, and never should be construed as a recommendation to buy, sell, or hold any particular investment.
User avatar
celia
Posts: 12790
Joined: Sun Mar 09, 2008 6:32 am
Location: SoCal

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by celia »

nss20 wrote: Thu Jun 10, 2021 4:25 pm We are selling some real estate. The location is fantastic and it's a hot market. Our real estate agent has received many offers within a week, all of them higher than the asking price.
This is likely the key. All potential buyers were probably told all ‘x’ offers were over list price and Best and Final Offers are due at a particular time...

OR, there is a potential lawsuit out there that your agent is protecting you from...

OR, a celebrity might be bidding with the stipulation that no-one is to find out their name (since the buyer will try to wring more money out of them)...

OR there is something special about your house/property that is irrelavent to everyone else, such as the property is someone’s birthplace and the buyer wants the property back in their family...

OR, a company is bidding on several houses at the same time but with some restrictions, since they are willing to pay more...

OR someone is interested in buying it but only if they can get a zoning variance...

You won’t know if it is a reason such as one of these or maybe your agent isn’t allowed to tell you. But if you stop worrying about it, you will find out price and contingencies soon enough.

(If you don’t come back to post the outcome, we will understand...)
mhalley
Posts: 8981
Joined: Tue Nov 20, 2007 6:02 am

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by mhalley »

I think what I meant to say is that doesn’t the realtor give you all the offers, but then says, I recommend John smiths offer, followed by George jones then Jane does? Also, I would think that you would have discussed with the realtor the most important aspects an offer must meet to be considered.
hachiko
Posts: 216
Joined: Fri Mar 17, 2017 1:56 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by hachiko »

Northern Flicker wrote: Thu Jun 10, 2021 10:38 pm
valleyrock wrote: Why would it be improper or illegal for an agent to provide letters accompany offers to the sellers? Can't sellers know the names of people making the offers...
It is not illegal, but it increases the risk of running afoul of fair housing laws. My view is that it is in your interest not to see the letters.
So then the conversation should be
Agent: I don't think you should get the full offers/letters because x, y, and z. Given that, would you like me to send you the full offers?
Seller: (yes or no)
Agent: Ok. [Do whatever the seller wants (and write it into the contract - which would at least seem to me to benefit the Agent as much as the seller especially if you're talking about liability risk from a likely pretty litigious prospective buyer).]
Luckywon
Posts: 1402
Joined: Tue Mar 28, 2017 10:33 am

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by Luckywon »

celia wrote: Thu Jun 10, 2021 11:01 pm
OR, a celebrity might be bidding with the stipulation that no-one is to find out their name (since the buyer will try to wring more money out of them)...
I would think the seller, not the seller's agent, would be the one whose agreement to this stipulation would be necessary.
hachiko
Posts: 216
Joined: Fri Mar 17, 2017 1:56 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by hachiko »

celia wrote: Thu Jun 10, 2021 11:01 pm
nss20 wrote: Thu Jun 10, 2021 4:25 pm We are selling some real estate. The location is fantastic and it's a hot market. Our real estate agent has received many offers within a week, all of them higher than the asking price.
This is likely the key. All potential buyers were probably told all ‘x’ offers were over list price and Best and Final Offers are due at a particular time...

OR, there is a potential lawsuit out there that your agent is protecting you from...

OR, a celebrity might be bidding with the stipulation that no-one is to find out their name (since the buyer will try to wring more money out of them)...

OR there is something special about your house/property that is irrelavent to everyone else, such as the property is someone’s birthplace and the buyer wants the property back in their family...

OR, a company is bidding on several houses at the same time but with some restrictions, since they are willing to pay more...

OR someone is interested in buying it but only if they can get a zoning variance...

You won’t know if it is a reason such as one of these or maybe your agent isn’t allowed to tell you. But if you stop worrying about it, you will find out price and contingencies soon enough.

(If you don’t come back to post the outcome, we will understand...)
Your agent would not be permitted to enter into a contract on your behalf to not disclose the name to you unless you explicitly granted that authority. And if they aren't an attorney, that's getting dangerously close to the unauthorized practice of law.

If your agent has information that would allow you to sell the property for more, not only are they most certainly obligated to tell you, they are incentived to tell you.

And if a celebrity doesn't want it known who is buying the house, why do you think they would trust a listing agent to keep that secret? Why wouldn't they just buy through an agent/ lawyer/ trust/ entity?
momvesting
Posts: 324
Joined: Tue Apr 12, 2016 9:18 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by momvesting »

I would ask the agent to sit down in person and review ALL offers with you. They are making a decent chunk of change off you and this is the least they can do while they are handling something this important. This will also give them the benefit of explaining any circumstances surrounding the offers. For example, some buyers may be completely flexible on dates and just put something on the offer because they cannot leave it blank while other buyers may have a strict timeline. Some may have unresponsive agents and prove difficult to close. Others may have outdated preapproval letters and are unable to get them updated. Some may have a home to sell but didn’t disclose that because if it doesn’t sell they can use the finance contingency to walk away. These are circumstances that your agent should sit and discuss with you so you can make the absolute best choice of buyer.
Northern Flicker
Posts: 7810
Joined: Fri Apr 10, 2015 12:29 am

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by Northern Flicker »

hachiko wrote: Thu Jun 10, 2021 11:09 pm
Northern Flicker wrote: Thu Jun 10, 2021 10:38 pm
valleyrock wrote: Why would it be improper or illegal for an agent to provide letters accompany offers to the sellers? Can't sellers know the names of people making the offers...
It is not illegal, but it increases the risk of running afoul of fair housing laws. My view is that it is in your interest not to see the letters.
So then the conversation should be
Agent: I don't think you should get the full offers/letters because x, y, and z. Given that, would you like me to send you the full offers?
Seller: (yes or no)
Agent: Ok. [Do whatever the seller wants (and write it into the contract - which would at least seem to me to benefit the Agent as much as the seller especially if you're talking about liability risk from a likely pretty litigious prospective buyer).]
The letters are not part of the offer nor should they be referenced in the contract. The listing agent could ask the buyer's agent(s) not to send letters.
My postings are my opinion, and never should be construed as a recommendation to buy, sell, or hold any particular investment.
User avatar
celia
Posts: 12790
Joined: Sun Mar 09, 2008 6:32 am
Location: SoCal

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by celia »

hachiko wrote: Thu Jun 10, 2021 11:15 pm Your agent would not be permitted to enter into a contract on your behalf to not disclose the name to you unless you explicitly granted that authority. And if they aren't an attorney, that's getting dangerously close to the unauthorized practice of law.
I recently sold a property in another state while I didn't live there. I never saw the buyer's name until we both had to sign the same closing escrow papers and I had to sign the deed.
And if a celebrity doesn't want it known who is buying the house, why do you think they would trust a listing agent to keep that secret? Why wouldn't they just buy through an agent/ lawyer/ trust/ entity?
Maybe that's what one bidder is doing.
TN_Boy
Posts: 2265
Joined: Sat Jan 17, 2009 12:51 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by TN_Boy »

Northern Flicker wrote: Thu Jun 10, 2021 11:37 pm
hachiko wrote: Thu Jun 10, 2021 11:09 pm
Northern Flicker wrote: Thu Jun 10, 2021 10:38 pm
valleyrock wrote: Why would it be improper or illegal for an agent to provide letters accompany offers to the sellers? Can't sellers know the names of people making the offers...
It is not illegal, but it increases the risk of running afoul of fair housing laws. My view is that it is in your interest not to see the letters.
So then the conversation should be
Agent: I don't think you should get the full offers/letters because x, y, and z. Given that, would you like me to send you the full offers?
Seller: (yes or no)
Agent: Ok. [Do whatever the seller wants (and write it into the contract - which would at least seem to me to benefit the Agent as much as the seller especially if you're talking about liability risk from a likely pretty litigious prospective buyer).]
The letters are not part of the offer nor should they be referenced in the contract. The listing agent could ask the buyer's agent(s) not to send letters.
The letters might give the seller information about the buyer's race or other demographic information. That is why, I think, some people suggest you do not look at such letters. The seller is safer from possible bias allegations knowing only the financial details of the offers. And this is a business transaction -- financial details are all the information you need.

That said, we had a situation a few years ago when our agent said "you got an offer, but I'm not sure I want to show it to you." This was on the phone, so I wasn't able to reach over, grab the agent by the shirt and say "You ARE going to show us the offer." The spouse and I politely expressed our opinion that we wanted to see the offer pronto. The agent said he would "check with his broker."

Fortunately for the agent, after checking with the front office he promptly gave us the offer details. It was unusual, but we had bought and sold houses before, and were perfectly capable of evaluating a buyer offer. The agent should provide, as this one did shortly thereafter as they came in, a summary of all offers, including obviously the price, whether the buyer was pre-qualified for a loan, and a few other financial details. Providing this summary, along with the agent's opinion on the merits of each offer, is part of what the agent is getting paid for. He/she provides all the relevant information, the buyers make an informed decision.

It is actually state law, I believe, where I live that the agent show us all offers. This was an experienced agent, so I'm still not sure what was going through his mind. I should note that this agent did an excellent job helping us price the house, using several different metrics. So I think he provided value upfront. We got several good offers and sold the house easily.
humbledinvestor
Posts: 208
Joined: Mon Jul 14, 2014 3:37 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by humbledinvestor »

BillWalters wrote: Thu Jun 10, 2021 5:02 pm I remain astonished this industry hasn’t been disrupted.
Same. I have sold two places through a realtor and the third FSBO. In this hot market, are realtors even needed? Buyer look at homes on Zillow and tell the agent what they want to see. Hope someone figures out to disrupt this industry. Biggest scam with low bar of entry.
michaeljc70
Posts: 7767
Joined: Thu Oct 15, 2015 3:53 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by michaeljc70 »

demdeah26 wrote: Thu Jun 10, 2021 7:21 pm
BillWalters wrote: Thu Jun 10, 2021 5:02 pm I remain astonished this industry hasn’t been disrupted.
Are you kidding? Redfin and several other listing sites have exploded in recent years to facilitate FSBO or avoidance of realtors.

And OP, I would politely ask (demand) all offers in full by end of night along with an explanation why they are giving any hassle about that. If your agent doesn’t produce both I would fire him, contact the brokerage, all while trying to avoid paying him anything once you accept the best offer.
Redfin is not FSBO. They have agents and you pay them a commission when selling. They rebate some of the commission in many states (where allowed by law).
2 bits
Posts: 97
Joined: Fri Jun 27, 2014 9:42 am

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by 2 bits »

momvesting wrote: Thu Jun 10, 2021 11:18 pm I would ask the agent to sit down in person and review ALL offers with you. They are making a decent chunk of change off you and this is the least they can do while they are handling something this important. This will also give them the benefit of explaining any circumstances surrounding the offers. For example, some buyers may be completely flexible on dates and just put something on the offer because they cannot leave it blank while other buyers may have a strict timeline. Some may have unresponsive agents and prove difficult to close. Others may have outdated preapproval letters and are unable to get them updated. Some may have a home to sell but didn’t disclose that because if it doesn’t sell they can use the finance contingency to walk away. These are circumstances that your agent should sit and discuss with you so you can make the absolute best choice of buyer.
^ This
Several suggestions to contact the broker. Good idea, considering it may be the broker forcing this policy.
I sometimes think that I am living the life of which my immigrant ancestors dreamed.
michaeljc70
Posts: 7767
Joined: Thu Oct 15, 2015 3:53 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by michaeljc70 »

This is unacceptable. You should be getting the signed contract and information on their preapproval status. Agents want to get their commission and move on to the next deal. They often don't care if you get an extra $10k because that typically means only a few hundred bucks for them. They could be presenting you with the offers that close the quickest or have the highest likelihood of closing rather than the best offers.

I don't understand the delay. An agent should be emailing (or faxing) you the offer ASAP after it is received.
J295
Posts: 2945
Joined: Sun Jan 01, 2012 11:40 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by J295 »

You asked why the agent might be doing this, and noted two possibilities.

A reasonable guess based on limited facts is that the agent is inefficient, overwhelmed, or perhaps not customer oriented. A less charitable description would be lazy.

You are wise to want to see the full offers. Terms other than price can be material.
Nowizard
Posts: 3385
Joined: Tue Oct 23, 2007 5:33 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by Nowizard »

The market is also hot for realtors who understandably want to sell and move on. That does not change the relationship between the customer and service provider, however, unless you agree to it. There is a very low probability that those making an offer will move on, and if they do, you have other offers. Expect your realtor to earn their substantial payment by recognizing that each customer may have different expectations. The realtor is certainly not going to move on and leave you.

Tim
ajr22
Posts: 20
Joined: Wed Feb 11, 2015 2:57 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by ajr22 »

123 wrote: Thu Jun 10, 2021 4:47 pm Perhaps the agent is only showing offers where s/he is on both sides of the deal (representing seller and buyer). Or the firm s/he is with is on both sides. If you saw the complete written offers sometimes things like that stand out.
90% chance this is the reason you are not getting transparency. Like others have said, if you want to see them it is a quick forwarding of an email. Realtor is being greedy and not acting as your fiduciary (as they are legally obligated to).
User avatar
Shackleton
Posts: 560
Joined: Mon Dec 29, 2014 6:20 pm

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by Shackleton »

Another data point, I’ve only sold 2 houses, both in CO, and both times we were emailed the full offers. This allowed us to accept, reject, or counter directly in the docusign-type application. I would never accept a summary from my real estate agent.

Also, people should remember that Realtor is a registered trademark and only RE agents that are licensed and are members of NAR are required to follow the Realtor ethics. So all Realtors are RE agents, but not all RE agents are Realtors. https://www.realtor.com/advice/buy/what ... on-broker/

There may be local laws that a RE agent must follow and you can look those up by your state.
“Superhuman effort isn't worth a damn unless it achieves results.” ~Ernest Shackleton
bsteiner
Posts: 5862
Joined: Sat Oct 20, 2012 9:39 pm
Location: NYC/NJ/FL

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by bsteiner »

celia wrote: Fri Jun 11, 2021 6:34 am
hachiko wrote: Thu Jun 10, 2021 11:15 pm Your agent would not be permitted to enter into a contract on your behalf to not disclose the name to you unless you explicitly granted that authority. And if they aren't an attorney, that's getting dangerously close to the unauthorized practice of law.
I recently sold a property in another state while I didn't live there. I never saw the buyer's name until we both had to sign the same closing escrow papers and I had to sign the deed.
And if a celebrity doesn't want it known who is buying the house, why do you think they would trust a listing agent to keep that secret? Why wouldn't they just buy through an agent/ lawyer/ trust/ entity?
Maybe that's what one bidder is doing.
How did you sign the contract without seeing the name of the other party to the contract?

A celebrity could buy through an LLC or a trust of which someone else is the trustee, though most celebrities don't seem to care that (or perhaps are happy that) their names are in the public records.
bsteiner
Posts: 5862
Joined: Sat Oct 20, 2012 9:39 pm
Location: NYC/NJ/FL

Re: Real estate agent reluctant to show offers to the seller prior to decision

Post by bsteiner »

In New York, the offer would be oral. Once the parties have reached an oral understanding, the lawyers then negotiate the contract.
Post Reply