One agent representing two buyers who are bidding on the same house (Webster: for sale, real estate market)

[opossum]

Hi,

My husband and I were in a multiple offer/bidding war situation and we ended up losing the house to another couple. We just found out after the fact that the other couple was also represented by our agent. We feel we should have been told about this situation up front.

Does anyone out there know if it is legal in Massachusetts for one agent to represent two buyers offering on the same house without disclosing that they are doing this?

Thanks for your help!

[miu]

If you could do it over, how much more would you have paid for this house? Did this agent ever try to sway you as to how much to make your bids for? I think that an agent representing two interested parties is not a conflict of interest as all they are doing is formalizing the offers and conveying them to the seller. And that job can be done objectively. But if you find out that the other couple is close friends with the agent, maybe you would have a case. However, don't go by what I say as I'm not a professional.

I initially lost out on the bidding over my house, but we were still able to purchase the house. We paid the other couple a couple thousand dollars to allow us to buy the house for their winning bid price. Looking back, we should have just agreed to pay the asking price on the house, rather than going through two rounds of bidding with another couple. I know that for the first round of bidding, both offers were under the asking price. I think that the other couple backed out easily because this house needed so much work.

I suppose you could contact the real estate board and see if there have been any other complaints filed against this agent.

[capecodcathy]

I've had this situation. And, yes, I did tell both Buyers' that. What I told them at the time was, "make your best and final offer". Even a Buyer Agent can't tell you what to offer, even when you are the only horse in the race. I'm assuming you made an offer that was valid, within reasonable parameters, and what you could afford and not lowballing the Seller. If you WERE lowballing, you may have just shot yourself in the foot.
Regardless of your offer, it is the SELLER who decides to whom s/he is going to sell to. The Sellers' Agent should point out the positives and negatives of each offer, in a multiple offer situation. But, ultimately, it is the Sellers' decision.

[opossum]

She did say that we should make our "best and final"--which actually went for three rounds. I just wish she had been up front with us. And I know in some states agents are legally obligated to do so.

Things get a little odder because our agent told the other couple about us, and told them what house we ended up buying. We were both at a block party and the other couple approached us as if we had known about the situation. Needless to say we feel betrayed.

[capecodcathy]

If you went for three rounds, on your "BEST AND FINAL", then you weren't being up front with your Agent, now were you? Sounds like s/he had good reason not to trust you, too.

[SouthShoreDad]

C'mon Cathy give her a break. In all types of sales the golden rule is buyers have at least 2 best and last. I absolutely have done that personally when making purchases...and will continue to do it as needed.

Your agent should have disclosed this to you...on merit alone. It just leaves the door open to for this very thing. Did you have conversation with him/her about the competing offer?

Legally...???...Did you have a buyers contract or similar? If so language referring to this situation may be found in there.


Agents can and do have many clients, this is not an unusual situation. I have had this only once... disclosed it to both sides...I even asked if either would prefer I refer one side to an agent in my office (I would split with them 75-25) The offers were so apart that no-one had any issues upon acceptance of the best offer, but I was honest and open...thats the best way. I'm sure you'll never use this agent again now.

[clevedark]

Sounds cheesy to me. I like SS Dad's approach, open and honest. It just goes to show all RE brokers are not created equal.

[miu]

Originally Posted by opossum

She did say that we should make our "best and final"--which actually went for three rounds. I just wish she had been up front with us. And I know in some states agents are legally obligated to do so.

Things get a little odder because our agent told the other couple about us, and told them what house we ended up buying. We were both at a block party and the other couple approached us as if we had known about the situation. Needless to say we feel betrayed.

I feel that your agent did their job just fine. What would you have the agent do better? The agent can't control what the seller will do. The agent can't control what you and the other buyer offered. They can't predict how many bidding rounds there might be. Heck, what if there had been more bidders on the house?!? My bidding went for two rounds. Had I just met the asking price, perhaps it would have been over with in one round.

Then, there is the other aspect of how strong or weak the real estate market is. Right now, it's more of a buyers market, which means that many buyers are looking for a bargain and trying to buy the house as cheaply as possible.

But when my dad bought his current house in Berkeley, he didn't want to lose it in a bidding war, so his first offer was well above the sellers asking price and was accepted. And even then, the seller could have waited to see if there was a higher offer coming from other interested parties.

As someone that buys and sells antiques, it's the same deal. You can't control your competition or what price the seller will accept. And what an appraisal friend of mine often says... there is no fixed value on anything, and the current value is what a willing selling and willing buyer agree to make the deal on.

I buy on eBay all of the time. I limit myself to one sniped bid at the end of the auction, which prevents me from bidding higher than I wanted to. It's human nature to set a value on an item, but after seeing how other buyers are reacting to the price, then adjusting ones personal opinion higher or lower.

And some people want something more and are willing to pay more for it if it's being fought over. Shrug.

I wish you better luck on the next house you fall in love with, and I hope that it's nicer than this one that you didn't get. There are many good available properties out there. Keep looking.

[capecodcathy]

Sorry, SouthShoreDad. I say what I mean and I mean what I say. If you're making your "best and final" I'll have to take your word for it. The words "BEST" and "FINAL" do still mean BEST AND FINAL, don't they? Last I heard, Merriam's and Webster's hadn't changed the definition.

[SouthShoreDad]

Sorry Cathy someones best and final today doesn't have to be their best and final next week. Things change for better or worse. Example: I go car shopping. I don't need a new car, my car runs great no problems. I certainly play hardball with salesman on price I am willing to pay. 2 weeks later my car dies/accident/etc...am I in the same boat as I was before? No way...now I need a car. My best and last has changed.
Same goes for home buying...someones desire for a home can change from one day to the next. They can be personal or outside influences that have them reconsidering. I would never consider it untruthful or lying having someone comeback with another offer after their best and last. It doesn't mean here's my very last penny...it means here's the most I'm preprared to pay for this home at this given time.

If a buyer puts a best and last on a property are they "never" allowed to return to that property with another offer? If it remains for sale or comes back on do they need to wait 6mos, a year, 2yrs, 10yrs, or forever because as you so kindly pointed out the term final still means final.

I certainly hope you don't practice through the "Dictionary" only.