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Chito, Home Buyer in Colton, CA

Scenario- We bid on a standard flipper house Monday, Nov.21. The next day, late afternoon, the seller counter bid on a much higher price. Continued-

Asked by Chito, Colton, CA Sun Dec 4, 2011

Scenario- We bid on a standard flipper house Monday, Nov.21. The next day, late afternoon, the seller counter bid on a much higher price saying we have until the following day up to midnight to accept and that even if we use an outside mortgage company we have to be pre-qualified by them. The next day, we visited the home once more with our broker and right there and then accepted their counter offer and gave all our supporting papers of pre-qualifying and the DU Underwriting Findings approval of our loan. Broker submitted all requirements by 7pm the same day, well before the midnight deadline. Thanksgiving came, offices closed. Monday, we, my agent, my broker called them up. They say, Steve Rugg is not in but not to worry. Tuesday our broker called the lady who is pre-qualifying clients. Lady said, we're good to go, everything is A-OK but still waiting for this Steve Rugg who is not in office. Next day, Steve Rugg emailed my broker stating that he gave it to another buyer. Illegal?

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Answers

8
It sounds like things could have been a little kindler and gentler:
But it sounds like everything was done legally.
You cannot get emotional about it.
A lot of people are still waiting for the BOTTOM of the martket; a lot of people have stopped waiting.
1 vote Thank Flag Link Sun Dec 4, 2011
Only a real estate attorney can advise on this situation and determine if something should be brought to action, but I will say that this can happen. Yes, the sellers and their agent handled the offer-counter offer roughly and in my opinion unprofessionally, but their agent owes their client the due diligence of finding the HIGHEST AND BEST offer for the property.

Don't take it personally. Sometimes things can get nasty. At the end of the day buyers and sellers have individual interests. Good luck in your future home search!
0 votes Thank Flag Link Thu Jun 14, 2012
I know how Steves office does things. All deals are fully executed after the buyer has accepted all terms. As much as I don't agree with doing things this way, I'm sure they were in the clear. Keep this in mind when offering on a done by a major builder/hedge fund. They aren't worried about the buyer. It's about the bottom line.
0 votes Thank Flag Link Mon Dec 5, 2011
As Ron clearly stated, you can't get emotional about any RE transaction nowadays. There's so many things going on in today's Wild West Gold Rush mentality that you just have to know when to say...................NEXT! Move onto the next deal. With every offer you become a little more educated and sophisticated. Just hang in there. The right deal will come.
0 votes Thank Flag Link Sun Dec 4, 2011
Chito,
I'm afraid that Walter's answer is probably what happened. Like Walter indicated I would bet that it was a counter offer situation as is common with a lot of these types of properties. The accepted offer may have been higher or had better terms than yours. Steve Rugg is well known in the IE and I'm confident he does everything by the book, but if you are concerned that things weren't done correctly, then have your agent dig in a little deeper to see what happened so you can have peace of mind.

Best of luck to you.
Micki
0 votes Thank Flag Link Sun Dec 4, 2011
What contract did you use?
0 votes Thank Flag Link Sun Dec 4, 2011
Hi Chito,
First, I am sorry your offer did not get accepted. It is very common today to ask the buyer to cross qualify with a lender of the seller's choice especially with REO properties. Many will not even consider your offer without it. With regards to the counter offer they sent you, a couple of things come to mind. First, was the multiple counter offer box checked. If it was, the seller can chose any counter offer returned to them, regardless of the terms. If the multiple counter box was not checked, your counter would need to have been CONFIRMED RECEIVED by the seller or their agent in order to have a deal. Simply sending it does not mean they received it prior to accepting another offer. Hope that helps.
0 votes Thank Flag Link Sun Dec 4, 2011
Hi Chito,

Sometimes things look one way but actually are another. I would suggest contacting the agent's Broker or the owner of the agency to ask them to look into how the deal was handled. This may help to ease your mind. Good luck

Jodi
0 votes Thank Flag Link Sun Dec 4, 2011
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