Silent Listings: offering incentives to agent; Illegal?

[Property Meister]

there is a property that is not advertised, that the owners haven't fully decided to sell it (for a lot of various reasons I don't know about), the agent has told me about it, apparently a fair bit of interest in it, obvisouly he has been telling others as well, which is fine. I know roughly what price they want

Is saying to the agent, ok, if you let me know before anyone else, I will take it at around that price, and throw you $2000 extra in comission.

Is this common? illegal? Immoral? Unethical? in any way?????

or does this happen on a day to day basis?

 

[farmilor]

my first thought is that it is unethical on behalf of the agent to take your money as they are supposed to be working for the vendor, not the buyer. Possibly not in the best interests of the vendor to sell it this way if there is as you say a fair bit of interest.

Why not just go straight to the vendor before they put it on the market and let them know you are interested at around the price you think they want. Private sale and avoid agents fees.

 

[Ausprop]

correct. an agent cannot take a fee from both sides. Thinking about it logically... if he is paid as an agent for both sides, whose agent is he?

 

[Player]

Double Agent

correct. an agent cannot take a fee from both sides. Thinking about it logically... if he is paid as an agent for both sides, whose agent is he?

He is a double agent

 

[zaph]

sounds like an agent you wouldn't mind buying off but would never want to sell through.

start the deal through the agent and then go to the vendor crying informant. cut the agent out as suggested. if the deal goes through the agent learns a lesson and you get the place for a cannary

 

[twobobsworth]

That would be like agents receiving kick backs from the advertisers. I doubt that ever happens

 

[cu@thetop]

Never get between an Agent and his/her commission. Think carefully about excluding them from the equation- they will never give another deal to you again.

As for the kickbacks- if a flip/reno job maybe offer to list it through them when you sell.

As for the cashie deals- happens every day- but I wouldnt deal with them. Warren Buffet shares my view that "we have never had satisfactory business dealings with people of lesser/questionable moral character"

 

[Piston Broke]

A REA has a "duty of care" and disclosure towards his customer that he acts in and honest way and provides the services he's paid for.
And there is such thing as deceit by omission.

from http://www.rurallaw.org.au/handbook/xml/go01.php
"duty of care:
The obligation of a person to exercise reasonable care in the conduct of an activity. Breach of a duty of care which causes damage or loss to another may give rise to an action in tort (q.v.)."

PROPERTY AGENTS AND MOTOR DEALERS ACT 2000
"139.(2) The real estate agent must not claim commission worked out on an amount more than the actual sale price of the property or the amount collected."

He is legally bound to represent the seller, taking a commission for not show the house to other buyers is clearly not in the buyer's best interest imo.
It's immoral, dishonest and illegal to offer an agent $$$ not to show the property around imo. Regardless of how often it happens.
And I would doubt any agent would take it up, as they have much more to lose than a dishonest buyer.

 

[jaycee]

sounds like an agent you wouldn't mind buying off but would never want to sell through.

start the deal through the agent and then go to the vendor crying informant. cut the agent out as suggested. if the deal goes through the agent learns a lesson and you get the place for a cannary

I dont think the agent has done except advise a property is coming up for sale which you maybe interested in (?)

 

[Jacque]

there is a property that is not advertised, that the owners haven't fully decided to sell it (for a lot of various reasons I don't know about), the agent has told me about it, apparently a fair bit of interest in it, obvisouly he has been telling others as well, which is fine. I know roughly what price they want

Is saying to the agent, ok, if you let me know before anyone else, I will take it at around that price, and throw you $2000 extra in comission.

Is this common? illegal? Immoral? Unethical? in any way?????

or does this happen on a day to day basis?

I'm surprised that you even need to clarify if this in unethical behaviour. So what you're saying is that basically you're prepared to bribe the agent into ensuring you get first dibs at the property (at "around that price") and secure it. Geez, it must be some special property to resort to this type of tactic. Why not just offer $2K more than the other highest buyer and it can all be yours legally?

Never mind real estate agents getting a bad rap for not declaring commissions or brown paper bag payments- what about buyers like yourself?

 

[Property Meister]

To those who seem to have misinterpreted, the question was does this sort of thing happen?? and is it ethical??

of course agents will choose a potential buyer who they feel is more genuine then one that is not.

Ive also heard potential buyers say to agents, if you get me that one, you'll get another sale out of me or you'll get a quick sale.

anyway, this was a simple question on how things are done, and other ways to get the best chance

P.S I have no intetion in excluding the agent at all, agent hasn't suggested any form of incentive, nor have I, in fact, all Ive said is im interested!