Once upon a time in the ever fascinating...always changing...world of real estate....there was an agent with a buyer agency contract who had a buyer looking for condos. The buyer was most interested in a particular complex which suited his needs for amenities and location. His instruction to his agent was to show him ALL the units that fit his criteria.
The buyer believed that the agent had done that....and bought a condominium....closed and one always hopes, lives happily ever after...oh not. The buyer learned after closing that a unit that was more updated and in the complex of his choice was a short sale that he was not shown...no listing sent...no heads up for the many open houses held.
Whoops ! The buyer is now suing both the brokerage and the agent ....so you "don't want to show a short sale".....? You want higher commission NOW.....maybe what you want and what the buyer wants are not quite the same....and the consequences can be drastic, dramatic and devastating....stay tuned we will have this on our legal radar screen and updates furnished as they become available.
Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS
Those who are not willing to put the customer first should get out of the business or never get in it.
That's crazy! I can't imagine not showing a property because it's a short sale, or based on commission for that matter.
I like to give buyers access to MLS listings so that they choose which homes to see - and I can't get in trouble.
An example of not having a real relationship with the buyer. With a real relationship one would have shown everything and explained the problems involved with a "short sale" such as not necessarily being able to close on the unit during the buyer's time frame. This might just be the defense that the realtor takes as that would have excluded the problem based on the agent's experience. It will probably be settled by the insurance company of the agency rather than ever reaching trial as one never knows how a jury will react without any past cases in such a matter. We can only wish the individual(s) involved our complete support.
I'm with Mark here...
Agents MUST put their customer's needs first.
Showing/Selling agents that act as though Short Sales are "too much trouble/work" have no clue...they are not doing any more work than they ever did with the possible exception of one more piece of paper to sign....stay tuned !
Interesting scenario! I'm curious, are we sure the buyers criteria didn't include a closing date? Just playing devil's advocated here - what if the agent didn't include the property not because it was a short sale, but because the buyer's criteria included closing and taking possession of the home in 30-45 days?
-Karin :)
We ARE sure....and that is why there is room for a law suit.....whether there was or not...it would appear to this non-legal mind that you give the buyer ALL the information and tens of thousands of dollars in savings COULD be a reason to change the closing date !
Oh oh. That agent needs a spanking with a kitchen utensil. If he/she keeps their license after losing a breach of fiduciary obligations complaint lawsuit.
I don't see any difference with SS, REO, HUD or a nonconforming property, yadayadayada.
Just inform the client that that's what it is, here's how the process changes, does that fit your timeline and qualifications, do you want the added responsibility or reduction of rights and then
the decision is theirs.
This business is often complicated and messy, and no easy money. Deal with it or get a real job.
I always educate my buyers on short sale delimas and let them make the decision to look or not. If they have the time so do I.
Short Sales don't need to go on for a zillion months....and some of the bad PR is from agents who have not had success because they are clueless when it comes to the process....stay tuned for more adventures from the legal side of short sales !
Sounds like a real interesting case..... could be a practice changing one for many agents. I wonder how Judge Judy would rule? lol
I look forward to the updates...while it is true it is hard work working short sales, any transaction today is harder than it was,right? With so many out there, they are hard to ignore!
Wouldn't you love Judge Judge to make a guest appearance on AR in a webinar ?
YIKES!! Agents really need to make sure they are explaining short sales to their buyers. Let the buyer decide if they want to look at them or not. Or course in some markets, like mine, they don't have much of a choice any more. In fact the short sale could be their best opportunity to get a property. That's good for my sellers.
Yes Brian...Florida is sort of a different country...and more attuned the realities of the economy,,,,here....hiding your head in the MLS listing and choosing what to show still looks like an option to some agents who afraid of the not closing...waiting ,etc.
Sally & David - Unless short sales were excluded by buyer broker agreement or otherwise per that buyer's instructions, that broker is in big trouble.
You got it Wendy....trouble is brewing in this market and I hope it hits the media BIG TIME...I may even give it a little nudge !
Sally, that will be a less well learned. We provide a service and it's not up to us to pick and choose what a Buyer wants to look at....this Agent definately crossed a line that he shouldn't and I'm sure he's kicking himself now or doing a good back stroke! Pathetic, it is.
They be doing some kicking...and I would bet screaming....all the way to their lawyers' office....and that is exactly what they deserve !