Yikes...this agent is definately doing the wrong thing for his seller. If your offer was higher and he only showed them a lower offer, he is risking his license. I would have your agent look into this.
As far as the counter...it sounds like a true back-up offer, sounds like this is a short sale and they are not going to open escrow. Normally they would write something like "subject to cancellation of current escrow" in this case they don't seem to have an open escrow.
I certainly wouldn't sit around and wait for this one...the listing agent is not very ethical and you might run into more problems if you go through with it.....
The home seller has to consider more factors than just purchase price when choosing which offer to accept. Terms are a major factor. If two offers aren't that different in price, other factors become more important in the home sellers decision. Contigent vs. non-contingent, closing date, size of down payment, cash vs. finance and ability to close come to mind.
With all that said, if it closes for $60,000 less than your offer and the listing agent tells you there was a small flood during escrow so the seller lowered the price, you might get a little suspicious.
Realty ONE Group
Laguna Design Center
23811 Aliso Creek Rd. #181
Laguna Niguel, CA 92677
A sellers listing agent isn't going to tell you all the same details he/she might tell your buyers agent, partially because you aren't likely asking the same questions, and also because if you haven't even been to the property yet, you may not be perceived by sellers listing agent as being truly able to make an offer fast (or possibly solidly) enough so seller doesn't potentially lose a first offer that may already be in play.
There are a lot of questions we can't answer for you with the details you've given, and it isn't appropriate, or fair, for any of the agents answering your question to jump to a conclusion that the sellers listing agent actually did anything wrong, or unethical. We don't have enough data to know or answer that.
So, my best advice, get yourself a buyers agent, a good one, and I think you'll have much better success at finding a good property. Ask your friends, relatives, even your employer for referrals to good real estate agents, and interview a couple of them.
There are plenty of top notch real estate agents in every area who are looking for a good working relationship with a quality buyer who asks lots of questions, and appreciates good advice and useful help.
Prudential CA, Laguna Beach
Is perfectly correct. It is not fair but we also do not know all the facts. The business is hard and the agents are trying to the best for everyone and someone gets the home. Do not give up you are considered 1st back up in this position do not throw up your hands unless you find something you like better.
My question would be "Did that agent have an ACCEPTED OFFER with buyers and seller signatures on it at the time yours was submitted to him? Whether it was his buyer or not he legally has to present all offers! Secondly if the agents buyers offer hadn't been accepted by sellers at the time he should have given you a "Counter Offer with Multiple Counter offer box checked"
to give you and his buyers the opportunity to come in with highest and best offer.
In a short sale situation this is more difficult because the first offer is usually the one sent to the bank and some banks don't want more offers sent to them until they get to the negotiating table and have had the home appraised.
Did you hear this statement directly from the mouth of the listing agent, or from your agent? If, from your agent, did he or she hear such a statement directly from the listing agent's mouth, or POSSIBLY misinterpret something the listing agent said - such as "we already have an accepted offer" which usually means that the property is closed off from "accepting" an additional offer. ( Subsequent offers can be received, just not accepted, which is a huge difference.)
If the listing agent DID make such a statement, they would indeed be not only wrong, but, in my humble opinion, quite stupid. In today's market there are a LOT of agents who are not only limited in their experience, but limited in their knowledge. Many of these type of agents are being quickly flushed out of the system - or soon will be if they are, indeed, pulling shenanigans.
The bottom line seems to be that you now have an acceptable offer, subject to the cancelation of the prior offer, so you seem to be in a good position to secure the property.
One final word on the subject, just because the listing agent has apparently re-opened the property to you, if the original buyer satisfies any reason the seller sought to cancel, they could STILL be, and remain, in first position, so I wouldn't count your chickens until that cancelation has been completed. Good luck with your purchase.
He already represents the Seller. Representing the buyer and seller, in Georgia, is called Dual Agency. Although legal, at Metro Brokers /GMAC Real Estate we do not offer Dual Agency, since is may cause confilcts. Rather we do designated agent (refer/assign to the buyer to another agent). Or if the buyer prefers they can represent themself, and we do "ministerial acts", basically fill out the paper work, while still representing the Seller.
As a buyer you should find your own agent to represent your interests. Email me if you would like a reference to a buyer's agent in your area. firstname.lastname@example.org
Bob....since you mentioned me, when you read the question it clearly indicates that the listing agent wanted to show his buyers offer first. So on that assumption....my answer is correct. At least that's how I would handle it. But we find on this site that there are many agents out there who do things differently. That's why it's so important for the buyers and sellers to make sure they have a good understanding of their agent and how they work.
Max Allen - TRI-Group Realty, L.L.C. Georgia
Later, if that "escrow" started getting shaky, or turning sour, the listing agent might have re-opened the listing to the market, while waiting for the cancelation paperwork to process, which typically takes a few days. Technically, they cannot officially accept a subsequent buyer's offer until that cancelation paperwork has been signed by all parties. You may have been fortunate to have been still waiting in the wings.
There is nothing fishy or illegal about the sequence of events that I've just described, and I would submit that an occurance is common practice, and happens often.