I was told if I signed a contract for "X" amount of dollars, a house for sale would be mine. I paid $1000 and signed the contract for the "X" amount. However, instead of presenting my offer/contract to vendor, the Estate Agent, L J Hookers, Craigieburn, rang other people who had been at the open house, to let them know that I had put in an offer, told them the offer amount to see if they could get a better offer, which they did. Then rang me back to see if I would better that offer. So a private auction was happening. I wouldn't have minded had the vendor has asked for more, but not for the agent to go seeking higher offers before mine was presented. Do you think this is ethical? Is this the way all private sales are conducted? What are you thoughts?
Experiences with Estate Agents with Private Sales of Houses
Last edited 11/11/2015 - 21:02 by 1 other user
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Have you asked the agent to honour what was discussed:
I was told if I signed a contract for "X" amount of dollars, a house for sale would be mine. I paid $1000 and signed the contract for the "X" amount
What is the response?
The keyword agent use is "would" not "must". Did you ask the agent what is the point of putting a deposit?
Agent is vendor's, so it is correct that the agent acts on the best interest for vendor.
If you think you are misleaded in anyway, should feel comfortable to ask agent directly. Don't be shy. Money is with you,
This is interesting.
You have at least a couple potential issues here if what you have said is correct and you can prove it.
1. If the RE Agent, acting as agent for the seller, told you that your offer at $X would be accepted you may have a contract.
2. If the RE Agent made the representation you claim, either knowing it was untrue or with the intention of using it to leverage out other offers you have a good claim against the agent for M&DC.
If what you have said is true I would love you to nail these dirty bastards to the wall.When I went back at the agent, all I was told was that they have to do their best for the vendor. The agent did say it would be mine for "x" amount but I now believe my offer was his starting point to leverage other offers. Who could I complain to?
Do you have proof that he used your offer as a leverage? If not, it will be a "I said, she said" situation.
It was said to 3 of us but no proof. Next agent, beware. I will record on my phone what I am told!
@aocal: It is definitely unethical but knowing you have no proof, there is nothing more you can do. You might want to be careful and check your local laws regarding recording conversations. Falls under invasion of privacy act.
I assume that RE Agents are registered and licenced in Victoria like they are here.
Find whoever is their controlling body and lodge a complaint.
It can't hurt - even if they do nothing.Department of Fair Training is the licencing authority for real estate licence and place to ask and complain. here
To be fair, here is my thought on your experience:
What you mention re signing and deposit, you are not the only one. I have experienced many times in the past years by different agents. There was a communication gap between you and agent - either you do not understand or agent does not express clearly.
The small deposit is no legal binding, It only shows your interest to the owner and to the agent that you are serious on making an offer, so owner can start thinking. You can get your money back anytime and now.
It is the job of a selling agent to get the best price for the vendor.
Would be different "if you say I like the house so much, now I put an offer and ready to put 10%, can you ask the vendor yes or no and get back to me today." Either buyer or seller can change mind easily until 10% taken.Some owner may not be keen to sell or only 50/50 (only sell on excellent price), then this agent can go back and show confidence to the owner with your small deposit that he/she has the ability to sell "here is a real offer, will you be ready to sell (so to sign an exclusive selling contract)?"
This seems normal to me.
One thing i learn about real estate…is that you are never getting the house without making the current owners very happy…
Standard real estate agent practice! It is almost word for word what the agent who we were interviewing regarding selling our home said he would do.
the thing is, when you make an offer you never know if you are the first person to put in an offer or a third, or later person. So you don't know where you stand in the leverage stack.
I was looking at purchasing a place and it went like this:
1 open home day. Offers to be submitted by 2pm.
1pm agent calls around all interested parties and asked for their best offer. Said he would only get back in touch with the highest 4 and that I needed to increase my offer to be in the game.
4pm agent calls to say you're in the top 4. Process from there is to go to the agency by 5pm, sign a contract for the highest price i'm willing to pay, pay the 0.25% deposit on the spot and the highest contract wins.Seriously.
So for a grand total of about 5 hours work, the agent made a sale, got it at the highest price interested parties were willing to pay and cashed in his commission. It's ridiculous!
I can give you another scenario that happened in NSW, a friend of mine was told by the realestate agent that his offer had been accepted and was told to come in the next day to deposit the cheque as it was around 9pm by the time this happened. So he came in at lunch time to give the cheque for the property only to be told that the agent had just sold it off to someone
else >.<The Realestate agents in NSW seem to not have any concept of ethics including a regulating body on behalf of consumers that monitors what they do on a regular basis. Which I find is a really big concern as this is one of the biggest purchases people make in their life.
Thanks for your comments.
Subsequently, I have received a phone call from the agent full of apologies for misleading me…
It sucks but I'm pretty sure they can do it if the vendor hasn't signed yet. Just get your deposit back and tell them to stick it. Unless you really want the house but be prepared to be bent over a barrel as they try to wring every last cent out of you.