Yesterday, I spoke with a listing agent in Sacramento. My client and I were speaking with her about an offer on a listing. It is a short sale and the owner must sell because a sale date is approaching. We discussed the parameters of the offer that would be forthcoming in a day or so. Everything was great. The listing agent was happy and my client believed that he would be able to get a short sale approval.
Today, I receive an email from the listing agent and she advises that her BROKER decided that she would not participate in this transaction!! WHAAAAT!!! It is a cash transaction by an investor…the widowed home owner wants and needs to get out of the house!! Where in the script does it say that the broker can decide “not to participate”. In fact, there is a strong and legally supportable argument that the broker is violating her duty to the homeowner by injecting her personal opinion into a legal and financial matter. The offer was not even going to be submitted to the owner!!
Unfortunately, this type of disdain for investors is foolish and legally actionable. NAR reports that 30% of transactions today are with investors. Agents and brokers should not be taking positions on such matters because it is rarely a good idea to inject personal or emotional feelings into a real estate transaction. Especially when it is a CASH offer and likely to be approved by the lender..AND there is a sale looming.
Naturally, I am going to go around the broker and contact the home owner and advise her of the offer and the fact that the agent’s broker was blocking the transaction. I can imagine her reaction. I will also be submitting the offer through another agent and the broker better allow it to be submitted to the owner!!
It is hard enough to complete transactions today…but such ignorance makes it much worse….and an agent will lose commission on this for NO reason other than the broker’s ignorance of her responsibilities, duties and the law.