4 ms·

When P is $1M, as the article describes, I (putting myself in the seller's shoes) am not getting market value for the property; I'm only getting about 80% of ma

by biot 11y ago

When P is $1M, as the article describes, I (putting myself in the seller's shoes) am not getting market value for the property; I'm only getting about 80% of market value. That's the problem I see and it really has nothing to do with you or your ability to make P on the property. The selling agent should have worked harder to capture at least a portion of that $1M, particularly since that $1M came at little to no risk for the chain of assigners. Additionally it may be the case that the buyer's agent purposely withheld a buyer, hoping to low-ball the seller, assign the purchase to themselves, and then sell the property for an offer that they could have brought to the seller in the first place. The only reason this is possible is because the market is inefficient and I'd like to see more efficiency introduced into the market, whether that comes through legislation or via technical means, so that people aren't leaving $1M on the table to be scooped up by others. In reality that $5.2M property which ultimately closed at $6.2M might have sold for $5.7M, earning the family another $500K and saving the real buyer $500K.

sokoloff 11y ago
Additionally it may be the case that the buyer's agent purposely withheld a buyer, hoping to low-ball the seller, assign the purchase to themselves, and then sell the property for an offer that they could have brought to the seller in the first place. If the buyer's agent is acting on behalf of the buyer, they were under no obligation (legal certainly, nor ethical or moral, IMO) to bring that higher offer to the seller. (Real estate law and practices are hyper local; around here [MA, USA], a "buyer's agent" owes a fiduciary obligation only to the buyer and is allowed (and in fact would be required) to not disclose the presence of this other potential offer as by the "undivided loyalty" clause, they are "prohibited from advancing any interests adverse to the principal's [read: buyer's] interest or conducting the principal's business in such a way as to benefit a customer, a subagent, the agent or any other party to the detriment of the principal's interest." In other areas, that might not be the case.) In that case, it is the listing/selling agent's responsibility to advise their client (the seller) that the offer is too low and they should wait longer.

by biot 11y ago

sokoloff 11y ago

Additionally it may be the case that the buyer's agent purposely withheld a buyer, hoping to low-ball the seller, assign the purchase to themselves, and then sell the property for an offer that they could have brought to the seller in the first place. If the buyer's agent is acting on behalf of the buyer, they were under no obligation (legal certainly, nor ethical or moral, IMO) to bring that higher offer to the seller. (Real estate law and practices are hyper local; around here [MA, USA], a "buyer's agent" owes a fiduciary obligation only to the buyer and is allowed (and in fact would be required) to not disclose the presence of this other potential offer as by the "undivided loyalty" clause, they are "prohibited from advancing any interests adverse to the principal's [read: buyer's] interest or conducting the principal's business in such a way as to benefit a customer, a subagent, the agent or any other party to the detriment of the principal's interest." In other areas, that might not be the case.) In that case, it is the listing/selling agent's responsibility to advise their client (the seller) that the offer is too low and they should wait longer.