Expert: Karyn Foley - 1/22/2007

Question
We put our house on the market a few weeks ago.  Our agent is not too familiar with the area... and we have been told that he may have underpriced us.  Anyway, we recieved a full price offer within a week... just 3 days before our scheduled open house.  We are now under duel representation because the buyer did not have an agent.  We are due to close the end of March, however instead of putting an "under contract" sign out, he put a "sold" sign up as soon as the contract was ratified.  He said that the sold sign kept people from coming to the open house who were not seriously interested, however that several people came in to check it out anyway.  He said that the open house provided many "backup" offers but nothing should go wrong with this contract.  My question is could he be trying to keep interest away from the house if he found that we could have done better with it?  Why have a "sold" sign in the yard for the next 2 months when we haven't sold it???  Could he not want to miss out on all the commission from the duel representation?  Any input would be greatly appreciated.
   Thank you
          Tisha

Answer
Dear Tisha:
 Congratulations on selling your home, and I hope I can help you by answering some questions and giving you insight. If your house was really very underpriced, quite frankly you probably would have receive a few offers the first few days.  Also, after three weeks, multiple offers should have been presented.  Your agent is obliged to present all offers to you until the transaction is closed, unless you say you do not wish to hear them.  
 Before you agreed upon a sales price, your agent should have given you a list of comparable properties in your area and you would have seen what was actively on the market as your competition, and the sales prices of the homes that have been sold and transaction closed.  Also, in your contract with your buyer should be a contingency about loan qualification, allowing the buyer a certain number of days in which to obtain a loan commitment from a lender, plus other inspection contingencies.
 I agree that a sold sign is very premature, and a sale pending type of rider should be placed instead at least until the buyer has officially removed any and all contingencies especially loan and inspections.  Buyers usually do not attend open houses for properties that are pending, so that may indeed be a waste of time for all parties. However, if you are listed in the multiple listing service in your area, it should have been reported as a contingent sale and that you are accepting back up offers as this time.  
 You agent is entitled to a dual representation commission if your agent generated the sale and there is no other agent involved, but your agent should put the owner's interests in front of his/her own.  Caution and due diligence beats over enthusiasm.  
 If you are still seriously concerned about selling too low, and did not receive copies of the comparable sales, then please call your agent's manager or the owner of the office and explain the situation.  Tell them that you will be obtaining an official appraisal from a licensed appraiser expecting it to be in the ballpart of the sales price you accepted.  Notice I said "ballpark".  It may come in lower, which does not necessarily mean you made out like a bandit.  Or, it may come in just a little higher, which does not mean you didn't get enough.  You can go to three different appraisers and you will no doubt receive three different figures.  You just should concern yourself if it is outrageously too out of bounds.  Then, please contact a real estate attorney who can then give you the best direction and advice.
 I feel that the price may be in line,m but you need to be reassured, and that should be the job of your agent.  Why would you have picked an agent who is not familiar with the area?  Agents have the ethical responsibility of doing business where they have adequate and reasonable knowledge of the type of real estate product they are selling and the value of the property.  If not, they could get themselves into trouble.  Who said your agent underpricedd you?  Sometimes nosy neighbors are only interested in keeping up prices nice and high for when they may be ready to sell.  Unless, of course, they have helpful information that they should share with you indicating that the price legitimately could and should have been higher.
Good luck.  Let me know what happens, and if I can answer any more questions.
 KARYN FOLEY