REAL ESTATE WEEKLY • Wednesday, July 11, 2018 • Page RE5
DEAR MONTY
A sad real estate story
R
eader comment: We lost out on buying our dream home when we didn’t understand the significance of what you recently wrote that there are “no standardized rules in the industry” and that “the nature of the real estate transaction and how the sales develop is very fluid.” We had first made a written offer on the house we wanted for less than the asking price, which was rejected by the seller. We had our agent verbally communicate increasing offers, a practice he said was standard in the city. Meanwhile, another potential buyer wrote an offer and also started negotiating. We didn’t find out until too late that the listing agent was presenting only our competitor’s verbal increments to the sellers, and didn’t tell them we were willing to pay more. Needless to say, the seller sold to the other party. It turns out we were the unwitting victims of a boycott against our agent because he was from an Internet real estate “disruptor” company that had been robbing clients from brick-andmortar companies in the city. When we cried foul, our attorney confirmed that while agents are required to present written contracts to sellers, they are not legally obligated to follow up with the verbal give-and-take that’s needed to firm up a deal. Please share our sad story to help educate buyers and sellers. Monty’s response: Note to readers — I have redacted the city and the name of the real estate company where our reader’s agent is affiliated. I did so because this same sad story is happening today in many cities, with many real estate agents, in many sections of the country. I am sad to hear your dream home was not to be. It is likely that you will go on and find another dream home you may like even more.
On the agent’s explanation, the company he is with has been in your local market for over 10 years. Like every other type of business, real estate companies have been pilfering talent and clients for over a hundred years. The agent’s company is just one of many disruptors using new techniques and technologies fighting to expand their brand. Most real estate agents would be more interested in seeing their listing sold than they are about which real estate company brings the buyer. Richard Montgomery is the author of “House Money - An Insider’s Secrets to Saving Thousands When You Buy or Sell a Home.” He is a real estate industry veteran who advocates industry reform and offers readers unbiased real estate advice. Ask him questions at DearMonty.com.