08/30/2021
Buyer Beware!
Your visiting and open house and the agent states "If you want a chance to purchase this house you need me to write the offer"
Well, what do you do now? Run for the Hills? No, run to the agent you've been working with! Why, according to the Department of Real Estate attorney I posed this question to said the following.
It is a Code of Ethics Violation to say that or anything similar. Now what can an agent holding an open house say to encourage you to write the offer through them? This depends upon the following:
If and only if, the listing is a "Variable Rate Commission" listing. This is a listing agreement that allows for the option of a discounted commission to the Seller if the office represents both Buyer and Seller.
So, if it's a "Variable Rate Commission" listing, what can the agent say? And, is there really an advantage to using the open house agent to write the offer?
First, the agent can only state that it's a "Variable Rate Commission Agreement" and that if the Seller may possibly see your offer more favorable if the commission is discounted because the listing office will represent both parties.
The Key word is "May". No agent can guarantee this.
Another very important factor to consider is that all offers have to be presented to the Sellers, unless Sellers requests it not be presented or the offer was submitted after the deadline for the offer presentation date
I am not an attorney and am only stating what I was told by a DRE attorney. Having access to these attorneys is a huge plus with the membership.
I can't give legal advice, but with over 30 years experience I can answer your real estate questions and have extensive knowledge on real estate investment both here in California and in other areas of the country