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D, Home Buyer in Minnetonka, MN

Biggest & Best Offer

Asked by D, Minnetonka, MN Fri May 29, 2009

If I submit an offer on a house - and my offer is the first offer submitted. Does the listing agent have to tell me if another offer is submitted so that I have the chance to put in my biggest and best offer? My agent asked the listing agent to let us know and he said he would...but didnt and the bank took the other persons offer. Is that ethical? He outright lied to us saying there were no other offers.

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The whole situation is unfortunate, but as we say in real estate - put it in writing! I participated in a NAR webinar yesterday that dealt with Short Sales, but one of the tips, I believe, would serve well for buyers dealing with bank offers also. His tip was to write on the purchase agreement something like "Buyers contract prohibits other offers from going to the bank - the only offer that goes to the bank, etc...”

I can sense your frustration, but keep the "faith" if you will, so many of these deals fall through who knows how this deal will end. I hope things workout great with your purchase. There are some great deals out there and you chose a GREAT time to buy! Best wishes!
0 votes Thank Flag Link Fri May 29, 2009
The property is a US bank owned home. I was told that US bank always requires highest and best in a multiple offer situation and they require the selling agent to send out a multiple offer notification. We never got that. Its so unfair. The selling agent is Troy Sanders, and I think he's slimmy. I have filed a claim with the BBB of MN and I am also filing one with the MN Dept of Commerce. I am livid that he lied to us and that we were not given a fair opportunity to purchase this house. Our agent is also taking him to Ethics. I dont think I have ever been so angry in my entire life.
0 votes Thank Flag Link Fri May 29, 2009
The listing agent is the agent of the seller; your agent is the buyer representative for you. Each has a written, fiduciary contract. We don't know how he or she interpreted a pending offer. Maybe the bank required the selling representative to keep collecting offers. His listing contract may have required it. I have had offers outstanding where there were five or six offers. We don't know why banks have chosen this; we speculate and feel like screaming "injustice!" However, this remains a mystery to many. I do wish you well. If you need help, you can always call. Liz, 612-986-4105.
0 votes Thank Flag Link Fri May 29, 2009
The seller can instruct the agent not to disclose the existance of other offers but if that is the case then the agent should not have said that he would tell you. There MIGHT be an ethical issue here... way too little information to know though because there are two sides to every story.

The rule of thumb on foreclosures today is that if the house is priced well you make a strong offer because there are so many buyers out there that well-priced listings are getting 2, 5, 10, 15+ offers. Some REO listing agents do a great job with customer service, others do not. You shouldn't rely on them going the extra step for you when placing offers because you might be disappointed, as seems to be the case here.

At the same time, if you were the seller and you had one offer come in but they said: "if another offer comes in we'll increase our offer" and then a stronger offer comes in second but they don't make such a statement, you might tend to think that the 2nd buyer is more serious with their offer because they came in stronger to begin with.
Web Reference: http://www.AaronSOLD.com
0 votes Thank Flag Link Fri May 29, 2009
Hm, seems suspect to me. If the agent said there were no other offers, said he would tell you if any other offers came in. Then, another offer got accepted before you had a chance to revise, seems fishy to me. Clearly someone dropped the ball. Don't know who, but someone didn't communicate clearly about what the expectations are. One more example of why we need to have stuff in writing, even what the agents talk about. In my experience, that kind of thing is generally not a problem. Most agents do what they say they're going to do. I had the same experience last year with an agent that said they'd tell me about new offers coming in and did not do their job. It happens, but I'm not exactly sure what your recourse is.
0 votes Thank Flag Link Fri May 29, 2009
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