Many times I've had the highest offer, but not the best offer.....meaning, I may have offered the $408k figure as an example but with a 80% loan to value ratio, while the competition offered $397k cash. I don't know if that was your situation, but perhaps your offer was submitted and just didn't get excepted. I've seen offers with a loan get trumped by cash offers that were $80k lower. The lending world is scary right now and cash is king in a major way. If you were comparing apples to apples then I would be a little upset as well, but the seller still has the right to accept any offer they wish. It would be nice to know who represented the winning buyer (double-ended transaction?) and what were the terms of their deal.
Waterfront Condo in Cedar Key, Florida was foreclosed on by the bank with a mortgage in excess of $200,000.
Bank auctioned home at $120,000 with reserve. Bidding got to $86,000 cash and the bank turned it down. Went to auction a 2nd time and the bidding was less than $86,000 cash. The bank turned it down AGAIN. Went to auction a 3rd time and the bank accepted a before auction bid of $57,800.
Moral? None when dealing with a bank, just keep trying. Sign a buyer representative contract with your agent for the next bank property you try to buy. Then talk to your agent about YOU calling and bugging the banks representative. All the agents, brokers and YOU want the purchase to succeed. The banks hourly paid clerks could care less. Bug them and they might push for you just to get rid of you and a property.
Can you sue? I'm not an attorney, so take this for what it is worth: I don't think so. Say, for example, I list my home for ten dollars. I receive two offers: one for ten dollars that can close tomorrow (I really want to close tomorrow), and another for eleven dollars but they want to close next week. Since I want my money tomorrow, I select the offer for ten dollars. Can the individual who offered eleven sue? I guess he could hire an attorney, but the better question is: would he have a case?
The offer for $397K may have had stronger financing than your $408K offer.
If your Realtor came to you yesterday to ask you for a "final & best" the property has not "sold" yet, it just sounds like the highest & BEST was the $397K offer.
As you shop around for another home, you should let the listing agent know that you'd like to keep your offer ON THE TABLE as a "Back up".
If you need any further assistance please don't hesitate to email me directly as I don't look back on this same thread for answers posted after mine.
Main Street Realtors
Realtor Since 1996
Can anyone add credible information to these questions. Thanks!
Lots of great advise and insight provided by so many contributors to your question.
In the Wild, Wild, West of real estate, often referred to as short sales, anything goes!
What has not be stated is this is only the first 'price' negotiation that will take place.At some date in the future the bank will counter with what they believe to be the price best suited for their needs. They could come back with a fair market value which could be 450 or 500K. Having a buyer on board who can go higher if the negotiator is unsuccessful in getting the bank to 'see the light' has a lot to do with 'best offer.'
Best of success in finding your new home.
Please see my blog how a short sale works,
The "best offer" is what is "best" for the bank, not you. There are numerous terms besides price. It is our legal obligation to present all offers but it is up to the seller(s) to accept the one that they want. The other offer could have been a cash deal. Also, it could have been a rescue company that has their own team of negotiators. Meaning, if there are multiple leans, say a 2nd lien for $50,000 that the 1st bank would have to pay off, but the other buyer had attorney's representing them they could find a way to remove that lien effectively making their offer $50,000 higher. It's complicated.
Green Home Realty
Certified Short Sale & Foreclosure specialist
As others have mentioned sometimes the "Highest Offer" doesn't equal the "Best" offer. Maybe the other offer had more money down, higher deposit, shorter contingency time frames, the buyer was willing to wait longer for a response, maybe it was all cash, maybe there is back HOA dues the buyer was willing to pay.
Many things are taken in consideration when choosing the best offer for the seller to sign off on and have it submitted to the bank for approval. Have your agent reach out and let them know you would like to be "back up" if you really like the house.
Many times the first buyer walks and you may be able to get the house for the lower price. Good Luck.
Having said all those bad things....the area and the people are very welcoming and fantastic. Dan Mata with Century 21 is the Best Realtor we've met. And we ran through some very bad ones. Best of luck and patience.
Factors affecting the offer are financing, down payments, anything else that may complicate the process.
I understand your frustration, sometimes things just don't make sense on the surface, that'w why you want an agent representing you that will explain the process and help you package your offer to make it the best possible.