Homeowner Distraught Over Low Sale Price

  Question:  My wife and I listed our Peoria home for $130,000 based on the valuation from our real estate agent who lives across the street.  We had four offers to buy our home for full price the next day.  We accepted one of the $130,000 offers.  A week later, however, two of our neighbors told us at an HOA meeting that they were upset because we were selling our home too low.  In other words, the $130,000 sale price was lowering the values of their homes.  Their “guess” was that our home was worth at least $170,000.  I immediately called our real estate agent and said that, either he pays us the difference in the value of the home and the $130,000 sale price, or we would file a complaint with the Arizona Department of Real Estate.  Our real estate agent said that was extortion and hung up on us.  Two days later, however, our real estate agent contacted us and said that he wanted to settle.  He would pay us $15,000 cash, and he would waive his real estate commission on the sale; but we would have to agree not to file a complaint with the Arizona Department of Real Estate.  Although we want to accept this settlement, we are so angry that we may still want to file a complaint with the Arizona Department of Real Estate.  If we agree to this settlement, can we still file a complaint with the Arizona Department of Real Estate?

  Answer: Public policy does not allow any restriction on a citizen’s right to report a crime or other misconduct to the police, or to a regulatory body like the Arizona Department of Real Estate.  Therefore, if you agree to this settlement you can still file a complaint with the Arizona Department of Real Estate.  You may be liable for damages, e.g., return of the $15,000, to your real estate agent for your breach of this settlement agreement.