Foreclosure in The Woodlands>Question Details

C. Carroll, Home Buyer in Houston, TX

We are reasonably sure the other people did not offer list price. We did and were going to counter any other

Asked by C. Carroll, Houston, TX Mon Jan 21, 2008

offer by offering whatever it took. We feel the seller never had the knowledge of our contract or that we would counter offer even higher. Maybe our realtor did'nt work hard enough for us but supposedly the contracts from both parties were presented at the same time. We were never asked to make a counter offer which seems strange.

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Bruce Lynn’s answer
Why would you feel this way?
I have had multiple offers at list this past year.
I've made offers on houses that had multiple offers this year and not always successful for my clients even when offers were at full price. If you know there will be multiple offers you will often need to bid list or even over list if you are in a popular area. It's normal if sellers get a good offer they think will work that they won't come back to you with specifics.
Web Reference: http://www.teamlynn.com
1 vote Thank Flag Link Wed Jan 23, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Don't think that's going to work in Texas. WE are a nondisclosure state. Also, if the buyer could do their own bidding, where would that leave the Realtor?
1 vote Thank Flag Link Mon Jan 21, 2008
Once the house closes, your Realtor can look and tell if the listing agent was also the competing contract's buyer's agent. If so, that means that the listing agent got paid double to have the other contact accepted compared to what he would have been paid to have his seller accept yours.

Unfortunately, there are a few unethical agents out there. This may not be the case in your situation, but it could be a factor. It has happened to me before.
1 vote Thank Flag Link Mon Jan 21, 2008
If both offers were presented at the same time, it's possible there was something more attractive about the other offer (if it wasn't as high a price as yours), perhaps it was a better closing for the seller, or perhaps it was a true cash deal (no mortgage contingency), perhaps they'd agreed to waive the inspection... there are a lot of variables to an offer, and purchase price is only one piece of the jig-saw puzzle.
1 vote Thank Flag Link Mon Jan 21, 2008
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
In Texas our law requires that all contracts are submitted, whether good or bad. There is a form that the agent can present with any offer -Notice of Presentation of Earnest Money Contract - that the seller signs off on showing that they were presented the offer. It is more commonplace now to be asked by other agents if there is an offer on the table currently so the agent will know. It is the listing agent's duty to inform the buyer's agent that there is another offer on the table if that is the case. It is "courtesy" to invite "BEST" offers to be submitted. I say BEST because price in this market isn't always the better of the two, especially if a fully approved buyer is writing vs a buyer that doesn't even have a lender qualification letter. I'd recommend my sellers anyday to seriously consider an approved buyer to counter/negotiate with.

Hope this helps - great question by the way!
Web Reference: http://www.michelleallen.us
0 votes Thank Flag Link Thu Apr 24, 2008
If you knew there was another offer this is the time to make your offer look as good as you can. That means NOT offering less and expecting to counter. The other offer came first, the terms may have been better than your offer, and the seller may just have worked with THAT offer to an acceptance. It happens.
0 votes Thank Flag Link Wed Jan 23, 2008
I anticipated their being issues with Realtors to my idea. The realtor is still involved in the Process. The final contract would need to be prepared by a licensed agent or a lawyer. Also a Realtor would be needed to provide access to the property and professional advice to the Buyer or Seller. A Realtor is needed to list a property on the MLS, etc.. This would not remove the need for an agent. What it does do is offer more control to the buyer or seller and more visibility into the process.

Offer prices do not need to be disclosed to the general public. Although I personally do not see an issue with full disclosure of pricing. It works well for determining true market value of a product. If it did not, Ebay would not be as successful as it is.

Disclosing pricing is not against the law. If it were, sites like Realty Bid could not disclose current bids. Check it out: http://www.realtybid.com/search/search.cfm?state=TX&coun…
0 votes Thank Flag Link Tue Jan 22, 2008
Travis, I think that would be great for us buyers! Unfortunately, this would be obviously bad for realtors but I think buyers would better understand and accept counter offers and being declined altogether.
0 votes Thank Flag Link Tue Jan 22, 2008
As others have stated, there could have been other reasons why your offer was not accepted or countered. A property being sold by children can be a messy situation. The other offer might have made the sales process alot easier to close than your offer. If it were an Estate Sale there can be delays waiting on the Probate Court to release the property for sale. This can take months.

It sounds like to me that the real issue here is lack of trust in the listing agent presenting your offer. Unfortunately the way traditional real estate transactions are handled requires us to rely on the professionalism of the agents. There is no way of knowing if and how your offer was presented. The only thing you have to go off of is the word of the Listing Agent. I personally think this traditional method is flawed and needs to be changed.

Im curious to know how many people would prefer to work with a real estate exchange that requires all offers and counter offers to be submitted and reviewed electronically? Buyers and sellers would have visibility to the number of offers currently active for a property. As buyers and sellers reviewed counter offers and offers, principals would be notified. Buyers could submit offers themselves, much like an online stock brokerage.

Thoughts?
Web Reference: http://txrex.com
0 votes Thank Flag Link Mon Jan 21, 2008
The seller's agent does NOT have to tell you anything about the accepted offer. As previously stated, there could have been a number of things that made the accepted offer more appealing than yours. The offer price could have even been lower than what you were offering but with different stipulations. Just remember, buying a home can be very stressful, but don't be too quick to blame your Realtor. If they showed you the home, wrote the offer for you and presented it to the listing Realtors all in a timely fashion, that is about all, at that point, that could be done. They can not MAKE the seller take your offer. It is strickly up to the seller which offer they accept. They are not bound to take ANY offer presented even if the offer is for full asking price. It is THEIR decission.

I DO agree with LS. This home is apparently gone. Move on with your search. This was not the home for you. There is a place out there for you and will probably be better suited to you than this one. Good Luck in your search.
0 votes Thank Flag Link Mon Jan 21, 2008
I agree with Elvis in saying there could be a number of reasons why their offer was chosen over yours. If you'll feel better just knowing- ask your realtor to contact the seller's agent to find out why theirs was selected over yours. They can give you that information. It still won't change their decision (especially if the title has already been signed) but you may feel better once you get answers. For what it's worth- it sounds like this home is no longer available to you and as hard as it may seem- it will get better. Everything happens for a reason.......Sorry for what you're going through.
0 votes Thank Flag Link Mon Jan 21, 2008
A home in The woodlands that an older lady lived in for some time. Her adult children were handling the sale. Homes in this area sell within days or weeks. This one was on the market 6 days.
0 votes Thank Flag Link Mon Jan 21, 2008
C. Carroll- what type of sale was it? (foreclosure, HUD, etc)
0 votes Thank Flag Link Mon Jan 21, 2008
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