He Pressured Us To Go Lower
A MoneyMade reader writes: We listed our home at a price we were confident in, but our realtor immediately pushed us to list at a lower price “to attract buyers.” When we asked him what was going on, he insisted that the market was softening. The timing felt off, but we trusted his experience, not realizing that our decision would become part of a much bigger problem.
We Got A Suspicious Lowball Offer
The same day we lowered the price, our realtor presented an aggressively low offer from his own client. The speed of the offer alone raised red flags. Something seemed fishy, especially since no showings had occurred yet. Now we’re wondering if our realtor’s loyalty was truly with us, or with his buyer. Can we take legal action? What now?
Understand Dual Agency
Dual agency means the same realtor, or brokerage, represents both the buyer and the seller. This is legal in many states, but it is also highly regulated because it creates built-in conflicts. In dual agency, your realtor cannot advocate fully for either side, which means you risk accepting a lower price without the proper guidance.
Undisclosed Dual Agency Is Illegal
The biggest issue isn’t the dual agency itself; it’s really undisclosed dual agency. If your realtor never told you he was representing the buyer as well, he's acting in violation of state law. Sellers have to provide informed, written consent. Without disclosure, any negotiation he handles could be legally compromised.
Francisco De Legarreta C., Unsplash
Signs Your Realtor May Be Steering You
When a realtor starts pressuring you to drop your price quickly, discourages alternative strategies, or tells you an offer is “all you’re gonna get,” there could be steering going on. If the realtor’s behavior coincides with an offer from an in-house client, the pattern then becomes even more suspicious. These are all indications that your best interests may not be at the top of his list of priorities.
Why Realtors Do This
The reason why realtors do this is simple: a realtor who represents both sides earns a double commission. That creates temptation: if he can successfully push you into accepting a lower price, he still gets paid twice, but you lose equity in the process. It’s unethical to manipulate pricing for personal gain, but things like this happen more often than you may think, especially in tight real estate markets.
Check Your Listing Agreement
Your listing contract outlines whether dual agency is allowed. Some agreements quietly authorize it unless you expressly opt out. Other contracts require a separate form. Reading your contract closely will help you understand your rights and whether or not your realtor had permission to represent a buyer connected to his brokerage.
Ask Directly About The Buyer
You’re allowed to ask whether the buyer is your realtor’s client or a client of someone in the same office. You can also request written disclosure. If your realtor drags his feet, gets evasive, or downplays the importance of it, that’s a telltale sign something isn’t on the up and up.
Get A Comparative Market Analysis
Before you fly off the handle and start threatening to sue, get a CMA from another local agent. If your home really is worth more and the lower offer seems too conveniently timed, that strengthens your position. A second opinion gives you leverage and helps you figure out whether the lowball offer reflects market conditions, or your agent’s personal agenda.
Consider Backing Out Of The Price Drop
A price change isn’t cast in stone. You can reverse or adjust your asking price at any time. If you have reason to believe the lower price was suggested in bad faith, raising it back to market value may be warranted. A legitimate agent won’t try to push back on that request.
Reject The Offer Without Hesitation
You’re never under any obligation to accept a lowball offer, especially one entangled in a potential conflict. Rejecting it forces your realtor to continue marketing your home. If he appears to get impatient, or continues to pressure you after rejecting it, that behavior should be documented.
Document Everything
Keep a written record of texts, emails, phone calls, and the timeline of events. Documentation is essential if you end up filing a complaint. The more details you have on record, the stronger your case becomes if you need to prove misconduct, misrepresentation, or steering.
Anastassia Anufrieva, Unsplash
When To Contact The Brokerage
If you think your realtor acted in his own financial interest, go above his head. Broker-owners take ethical violations seriously because they risk losing their licenses. Reporting questionable behavior to the managing broker can trigger a quick intervention, a reassignment, or internal investigation.
When State Regulators Get Involved
State real estate commissions investigate conflicts of interest, deceptive practices, and agency violations. If your realtor failed to disclose dual agency or tried to hard-sell you into a disadvantageous deal for his own personal gain, regulators can impose fines, suspensions, or even strip realtors of their licenses.
Consider Firing Your Realtor
Underperforming or unethical realtors can be terminated, sometimes even during a contract period. Many listing agreements allow cancellation with notice. If you feel manipulated or misled, firing your realtor may the simplest way to protect your financial interests and sanity.
ANTONI SHKRABA production, Pexels
Hiring A New Agent For A Fresh Start
A competent realtor will give you a realistic price range, offer current and projected market data, and encourage competitive bidding. They’re not going to steer you toward a suspicious in-house offer. A new agent can relist your home, correct the pricing strategy, and rebuild momentum in the market.
Getting A Real Estate Attorney
An attorney can also review your contract, explain to you your rights, and determine whether you have grounds for taking legal action. Attorneys are handy people to have around in cases involving dual-agency deception, financial loss, or contractual disputes. If real money is at stake, expert guidance is indispensable.
Protect Yourself In The Future
Before you hire any realtor, ask about dual agency policies, commission structures, and how offers will be handled. Avoid agents who push price changes with no compelling evidence or who discourage you from seeking out second opinions. A good agent is transparent and patient, never pushy.
Move Forward With Confidence
This situation may be stressful, but you still control your own destiny. You can reject the offer, renegotiate the listing terms, or just wash your hands of the whole thing and hire someone new. By asserting your rights and staying informed, you prevent a manipulative agent from costing you thousands of dollars.
Your Best Interests Come First
What happened to you is not only unprofessional, it could even be illegal. Realtors have a fiduciary duty to act in their clients’ best interest, and anything less is unacceptable. You’re empowered to turn down shady offers, file complaints, or fire your agent in heartbeat. With the right steps, you can get your sale back on track while safeguarding your home’s true value.
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