patrick.net

I've heard rumors this happens every day. Agent hides offer from the bank REO department, then the agent claims the place can't sell, then agent buys it themselves (or through a straw buyer) for a big discount.

Potential buyers always find that the price escalates beyond what they're willing to pay, because they are actually competing against the agent himself!

Where the hell are the cops?

I can't believe what is going on. This is 100 times worse than the S&L scandal and almost nobody is being prosecuted.

Bankers, real estate professionals, they're all robbing banks in broad daylight.

It is in the nature of our current real estate agent system that all bids are secret, not known even to the seller! (Which is the bank in this case.) And asking prices are not binding. They can change even if you meet the asking price.

Both buyers and sellers are forced to trust real estate agents, which is about the worst idea ever.

The fix for this is PUBLIC and BINDING asks and bids on all real estate.

A-friggin-MEN Patrick

It happens all the time. The agents not only hide offers from the bank. They also make properties unavailable for showing.

I was interested in a $60K house in West Sacramento. Over the agent made excuses that he just didn't have time to show the place and it had no lockbox, so he was the only one who could show it. After two weeks of this he then told me the owner was out of town for a month. At the end of the month I called again. He then told me the owner was going to be out of town till the end of the month again and that there were multiple offers (on a house that was never shown). I called another agent to inquire about it. The listing agent gave her the run around. That evening the listing agent changed the MLS status to "pending sale." It has remained in that status since the last week of January.

I talked to the neighbor about the neighborhood. One of the neighbors mentioned the owner being there. So the owner being out of town is a made up story to not show the house.

http://www.redfin.com/CA/West-Sacramento/1048-Hobson-Ave-95605/home/19477005

A scrumbag Florida cracker who SELLS USED CARS and REAL ESTATE!

Sounds like a perfect candidate for the United States Congress.

Maybe agents should not be allowed to represent themselves anymore. They must use a proxy agent, unless they are a Realtor(R), where they are held to the highest of ethical standards. Listing agents should never be allowed to purchase the property. If they're interested, they must refuse the listing.

This realtor should be in jail. The comments at article site are good as well.

MarkInSF says

Where the hell are the cops?
I can’t believe what is going on. This is 100 times worse than the S&L scandal and almost nobody is being prosecuted.
Bankers, real estate professionals, they’re all robbing banks in broad daylight.

The system is rigged for this to happen, and the agents are incentivized to do this. It's totally fucked up and should be highly illegal, but there's nothing that will be done about it. Shady, selfish, lying asshole realtors are only in the game to better themselves. Even if only 10% are like that (really it's more lik 98%), that's inexcusable.

It is in the nature of our current real estate agent system that all bids are secret, not known even to the seller! (Which is the bank in this case.) And asking prices are not binding. They can change even if you meet the asking price.
Both buyers and sellers are forced to trust real estate agents, which is about the worst idea ever.
The fix for this is PUBLIC and BINDING asks and bids on all real estate.

The best fix would be to shut down NAr (legally this should not be hard, procedurally a nightmare) and have local REB's set up a hub for offers. But I'm just daydreaming; your idea is much more realistic.

I make it a point now to anybody I know who has made a rejected offer on a house - especially an REO - that they express mail a copy of the offer to the owners. Include a note explaining why they were doing it, but not arguing about the actual rejection (if it happened) or trying to change seller's mind. That would take away from the good-natured intention of making sure their agent isn't screwing them more than they already know they're being screwed.

vain says

Maybe agents should not be allowed to represent themselves anymore. They must use a proxy agent, unless they are a Realtor(R), where they are held to the highest of ethical standards.

You're funny.