But this situation will continue unless you improve communications with your agent. "You were out-bid" means nothing if your agent can't explain specifically how. But here's the truth - your agent has no way of knowing the content of anyone else's offer. After the deal closes the sale price may be published in the MLS and county records, but if the buyer used non-price bidding tactics to make their offer better than everyone else's, then you may never know how you got out-bid. As a listing agent, I'll only tell buyer's agents how many written offers I have received and if any of them are at or above the asking price. I'd never disclose the specific content of one agent's offer to another agent, even after escrow closes.
If you're trying to buy in a market that favors sellers and there are a lot of buyers throwing money at the few homes for sale, your agent needs to focus on tactics other than just the price.
I would recommend you come to one of my buyer seminars.
As has been said below, the price may have been adjusted after the purchase contract was accepted. If your agent only told you that you were outbid it is possible that was all she was told by the seller's agent. Not all information is shared equally or openly. Understanding why your offer was not accepted, how important that home was to you, or what to do differently are key to a successful purchase.
Campbell home values are at http://julianalee.com/campbell/campbell-statistics.htm
Recent Campbell home sales are at http://julianalee.com/campbell/campbell-home-sales.htm
Top 2 agent nationwide at Keller Williams Realty, the nations largest
Over 20 years experience
Over 1,000 homes sold in Santa Clara County and San Mateo County
In the event of a foreclosure, it's fairly common practice for banks to accept a lesser cash offer over a financed one because they understand the borrowing process and the relatively high degree of borrowers that can't obtain "final approval" from their underwriter.
A bit more detail on my previous question - we had no contingencies, were pre-approved and can put down more than 20%. We're in no hurry to buy, and we're not looking to put the blame on anyone, just trying to understand this whole process and see what we can do better next time.
We will approach our next offer more informed and hopefully with a trusty realtor that can help us along the way.
NMLS #1056079 http://www.TheMortgageOutlet.com
Also the lender you select. If the listing agent has any issue with the lender they may sway to another offer they feel would go to closing, even if it was lower.
The are an infinite number of items that change a transaction on the way to closing, if the listing Realtor told your Realtor, that the seller accepted another offer, then your offer was out bid.
Length, cash offer, cash back, larger down payment just to name a few as to why you were " out bid".
I hope that you have purchased something since then?
Please feel free to contact me with any questions.
At your service,
I dont your Realtor has any reason to lie to you.
There can be a few reasons what could have happened:
1.) The property did not appraise after the offer was accepted and the price was reduced.
2.) After inspections, they re-negotiated the price as they found that the property needed a
lot of work.
In addition to what Juliana Lee shared, it's also possible that the accepted offer did not go through, and they accepted a back-up offer. Or that things were discovered during the escrow that resulted in a lower price.
Sometimes investors will offer a higher price-then offer to pay traditional seller closing costs to "buy down" the price. For example, say the price was $795K, the seller has about $55K in closing costs, including agent commission. If the buyer offered to pay for the seller closing costs of $55K in return for a lower sale price of $740K, you can see how both facts could be true.
I encourage you to find out more so you feel comfortable moving forward.
However, it is evident you were outplayed.
Your agent DID share with you the buying process.
Your agent also shared with you the negotiation process, the ENTIRE process.
You did not have faith in what your agent told you or trust the ability to get the price lower and lower and lower.
Now you are looking for someone else to blame.
Sorry, you are the one who choose to ignore your agents advise.
You were not lied to. You withdrew from the process before the dance even started.