Expert: Dick Dennis - 4/12/2007

Question
QUESTION: My fiance' and I went through a house this evening and loved it. It needed some good elbow grease but we surely have that ability. We were ready to write a contract immediately until our agent called the other real estate agent's office. It was for sale by a fairly unknown real estate company around here. Long story short, the agent at this agency submitted the very first offer to the sellers knowingly that 9 showings were going to go on later that day. The seller accepted and it was a low ball offer. We were prepared to offer cash for the house plus 5k on the asking price. Our agent, a 18 year realtor, told us that it seemed like this other agent was semi-clueless. Regardless, our offer is on the table incase the first falls through. Is there anything we can do now so that the sellers can get out of their current contract? If we seem a bit desperate, we are. I am even thinking about writing a letter to the sellers to inform them what offer they missed out due to their realtor. We are a young family looking to find a good starter home. We were sure this was it. Just a little bit frustrated and heartbroken over here in PA.
ANSWER: While a real estate agent's office has that right to submit the first offer and even to talk the sellers into accepting the offer, it does leave tons of doubt of concern for his client. In fact, it would be suspect for jeopardizing his and the broker's license. There is nothing stopping you from sending a letter to the sellers telling them what they were missing. And it just might be worthwhile to indicate that the real estate agent is making the total commission for their office alone by having the sellers to accept a price that gives them less than what they could have had. If I was your agent I would have submitted a complaint to the local Board of Realtors (if the sellers' agent belongs to it). The sellers' agent could have his butt in a sling.

I do wish you well.

Dick Dennis

---------- FOLLOW-UP ----------

QUESTION: I guess what I am really trying to get at is there anyway for the seller to back out of the current contract? Or are there a lot of jumping through hoops for that to occur? We're just looking for some hope.Thanks!

Answer
Yes, this is not going to be an easy thing for you, Katy, if you are trying to get the house. Your real estate agent should be able to guide you, or at least your agent's broker. My concern is for the listing agent who obtained the seller, too, saw the opportunity to get "both ends" of the commission, rather than to get the highest and best price for the seller. The seller could back out of this deal if he really wanted, but I get the feeling that is not the case. I strongly suggest you consult with a REAL ESTATE attorney to make sure you are taking the right steps.

Dick Dennis