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Unproffessional behaviour by a realtor?

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mig174

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My parents want to move south from Yonge & Steeles area so that they can be closer to their work. The realtor that has been driving them around various houses has today offered to buy their house and let them live there for the duration of time that they might have to do renovations on any new house they buy. To me, this is highly suspect. There is a huge conflict of interest here and my parents are probably going to get fleeced. What motivation would a realtor have in buying their house if not seeing that its value is probably much greater than what he might pay my parents? Is this unprofessional behaviour? Should my parents cease doing business with the realtor?
 
there could be some high-rise developments around the area.

so if your parents property is very close to Y/Steeles, there is the possibility that a developer may want to buy/raze/redevelop
 
mig174 said:
There is a huge conflict of interest here and my parents are probably going to get fleeced.
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Agreed. If the realtor is going to buy their home, they're not likely to get the highest possible price for their current home. They'll end up giving it up for the lowest they'd be willing to sell it for.

If the realtor is willing to buy their house and let them live there rent free, then counter by asking the realtor to pay for the mortgage of the new house while it's being renovated instead. If the realtor is being honest, it shouldn't make a difference to him since it should cost him the same either way.
 
I can't understand how the CREA/TREB don't have specific bylaws against this. He's essentially undercutting every other buyer out there by at least 5% by bypassing the need for the client to pay commission.
 
I think your parents should get 2 or 3 other realtors to give an evaluation of what the property is worth without saying they have a realtor who wants to buy it. He may well be telling them a lower value. The other issue that would concern me is that if he/she is offering to buy the property, will he truly represent your parents when other buyers come along or will he put them off and say things to not want to buy.

I think they really need the other opinions. If you find out from the other realtors that he is grossly undervaluing the property, then I would cancel any agreement with the agent and threaten to go to his broker/the board and file a complaint and that will end any issues. On the other hand, if 2 or 3 other agents come up with a similar price, then your parents would be wise not to put up with the aggravation and let him have it. Now, if there is a developer amassing properties, as suggested above, it could be worth more but they are probably not going to tell you that. Perhaps your parents should speak to their neighbours and ask if they have been approached by buyers/realtors recently.
 
When selling a home, you want to use a realtor to represent you. The same realtor can't represent both the seller and the buyer (as in this case) since that represents a clear conflict of interest. Your parents can sell to this realtor only if they use another realtor to represent them as sellers.
 
BobBob said:
When selling a home, you want to use a realtor to represent you. The same realtor can't represent both the seller and the buyer (as in this case) since that represents a clear conflict of interest. Your parents can sell to this realtor only if they use another realtor to represent them as sellers.
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I think the rule is that they must TELL you they are representing both parties and I agree it is not a terribly good idea!
 
cdr, the house is most likely not in a future development site. It's tucked away in the centre of the yonge-steeles-clark-bathurst area, surrounded by many similar houses. Thanks for your advice, guys.
 
BobBob said:
When selling a home, you want to use a realtor to represent you. The same realtor can't represent both the seller and the buyer (as in this case) since that represents a clear conflict of interest. Your parents can sell to this realtor only if they use another realtor to represent them as sellers.
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Dual agency is quite common and perfectly legal providing they follow the rules around such agreements.

Incidentally, it's the brokerage that represents the client and not the realtor -- you learn this quickly when the realtor changes brokerages. Larger brokerages (some have 400+ realtors) regularly represent both buyer and client.
 
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I'm seeing more and more unprofessional behaviour from realtors. And yes I know they're not all like this but it's really giving the industry a bad name.

I've been trying to sell my place privately and am having to deal with agents ripping off the information sheets I've attached to the signs. Now they've resorted steeling the entire sign. And I don't buy that it's random because no one else has a vested interest in taking the information sheet off an open house sign. Simply because it says "Private Sale" on it. The private listing company I'm going through warned me off this behaviour and I find it appalling. If anyone one of them had bother to call the information on the sign they would have found out that I'm more then willing to offer full buyer's commission.

And before I get people replying saying I can't generalize, I have lots of friends who are agents who DO NOT partake in these tactics and yet *everyone one* of my friends has warned me I should expect this if I sell private. All I'm doing is trying to save a bit of money and someone has to steel signs so people can't find me. It's pathetic behaviour.
 
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stipe said:
I'm seeing more and more unprofessional behaviour from realtors. And yes I know they're not all like this but it's really giving the industry a bad name.

I've been trying to sell my place privately and am having to deal with agents ripping off the information sheets I've attached to the signs. Now they've resorted steeling the entire sign. And I don't buy that it's random because no one else has a vested interest in taking the information sheet off an open house sign. Simply because it says "Private Sale" on it. The private listing company I'm going through warned me off this behaviour and I find it appalling. If anyone one of them had bother to call the information on the sign they would have found out that I'm more then willing to offer full buyer's commission.

And before I get people replying saying I can't generalize, I have lots of friends who are agents who DO NOT partake in these tactics and yet *everyone one* of my friends has warned me I should expect this if I sell private. All I'm doing is trying to save a bit of money and someone has to steel signs so people can't find me. It's pathetic behaviour.
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Anyone who does this should lose his or her license. That's disgraceful!
 
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