My wife contacted the listing agent for a short sale home that was listed. I think he mentioned that the house is currently in Pending. Approximately, a month later, he contacted my wife and asked if she were still interested in buying that home.
He said that since we do not have an agent, he would serve as a dual agent. For this reason, we would get the best chance of getting the house. In addition, he suggested that if we were to make an offer close to the listing price ($599,000), then he is 99% sure that the bank would accept the offer. He then said that if we were to make an offer in the amount of 10% less than the listing price ($585,000), then he is 95% sure that the bank will take it.
When we came to see the house, he voluntarily stated that this is his father’s home, and that he is listing it for his father, who bought it 2 years ago at $795,000. At the present time, the house is valued much less than that; hence, the short sales.
He told us that the commission that he gets from the home will go to his father and that he will not be making anything on it. That is why he was not willing to give us back 1% of the commission that we had asked for as other real estate agents had offered to us in the past. He also said that as a seller, his father has the legal right to submit to the bank the offer of his choice among multiple available offers. He said that it is his father’s best interest to sumbit my offer of $585,000 and not of those who have their own real estate agent making similar offer even if the offer is more than mine.
He was upfront about why he would do that since we have no agent, he would get all the commission and if he were to go with an offer who has another agent involved he would have to split the commission.
He seems to be genuine and fortwith with the facts of the situation. He also said that he does not think the bank would take an offer less than $585,000 since they already rejected the offer of $580,0000 from another buyer. The reason he suggested to us to make an offer of $585,000 is because, according to him, the bank would seriously consider accepting an offer within the range of 10% to 15% less than the listing price on short sales homes. He said this has been his experience doing real estate for the past 10 years.
BTW, the reason he also wants to go with us is because we already have an approved loan and that we will be puttting down a minimum of 40% for down payment. He said that he only has about 30-60 days to find another buyer or else the bank might foreclose on the home, something that he does not want to happen to his father. Also, after the bank rejected the offer of $580,000 from the other buyer, the bank told him to relist the home to see if he will get a better offer.
Here are my questions:
I am a little uncomfortable about his dual status, serving his father’s needs and mine. Should I be worried about this?
Is there anything that he said is plainly untrue?
Is it true that the the owner of the house can choose whichever offer among many offers to submit to the bank, even if the one that is being sent to the bank is not the highest offer?
What I want is to ask him to either help with the closing costs or give me back 1% of the commission and at the same not to offend him so that he would go with someone else. My husband and I really, really, really like the house.
Please HELP!!!