Can a realtor use your offer information as a tool to make their own offer look good and be accepted?

Question

My husband and I made an offer on a foreclosure property. After submitting our offer the realtor told us we had been out-bid by a small amount. He discouraged us from continuing to bid. 6 months later we have come to find out that the realtor/ listing agency bought the property. This is the same exact realtor that submitted our offer and advised us to give up. They used our bid to make their look good. They are also the agency that initially set the price on the home. Is this legal? Would it be worthwhile to contact the owner of the home (a lending agency)?

Answer 1

Please document everything you can, and file complaints with the board of realtors, and commerce department or whichever agency regulates real estate in your area.

That agent can and should be fined, lose their license, etc... If nothing else, you will create a record that will show every time something else they do comes in, and eventually they'll be out of a career.

Without your help, this scumbag will continue to exploit their position and screw over the public. Don't wait, just get it done.

Answer 2

On a foreclosed property a Realtor does NOT set the price. The Dept. of Housing and Urban Development (HUD) sets the minimum price. All offers are then taken and the highest bidder gets it. The Realtor in question probably did bid just slightly above your bid but they had no way of knowing what the highest bid would be. Still, it does sound fishy to me.

Answer 3

Um, no. Contact the Real Estate Licensing Board, and the State Dept of Real Estate and file a complaint. That is unethical in so many ways.

Answer 4

Its wrong to have done what they did, definitely, but some people look at it as being a way of conducting business to only profit themselves....no its not legal and yes you should contact Dept of R.E.S. to try getting to the bottom of this.....perhaps to go trial