Pat, Home Buyer in Rixeyville, VA

What is the proper procedure when a realtor receives an offer on a house from another realtor?

Asked by Pat, Rixeyville, VA Sun Mar 31, 2013

I found a foreclosed house online and later had a foreclosure specialist contact me. I inquired about this property, whether it was available or what the status was on it. This realtor checked into it for me and checked to see if this property was occupied. I told him I was interested in this home even though it would take a lot of work to fix up. He then contacted the lender/bank that had ownership of this home who then told him the name of the realtor in charge of putting this house on the market. My realtor told this realtor that he had an interested client and wanted to write up a contract. We prepared the contract and my realtor gave it to the listing agent. When the house went on the market, the listing agent waited until there was another offer on the property before he presented my contract to the lender. The other buyer is someone who wants to flip the home, I wanted to make it my home. Was this fair?

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Yes, this was fair and Cindy is correct. The agent representing the bank (or Realtor if it was a Realtor) is responsible to the seller, not buyers.There are often bid periods on these homes that are dictated by the seller but the bottom line is that they have the right to sell to whomever they want if it means a larger net or an easier sale for them. If the property seemed to need a lot of work to fix it up, as you mentioned, then possible it would require a 203k or investor type loan or cash to purchase. Real estate isn't like buying an item off a store shelf, - it's a product that is put out there to procure the highest offer at the best possible terms for the seller/owner.

Stay connected with an agent/Realtor who can represent you and have the process explained to you upfront and go over a few scenarios with your agent on how the whole thing can play out. Good luck and I hope you find what you need!
0 votes Thank Flag Link Mon Apr 1, 2013
You need to have your agent talk to the listing agent regarding the specific lender procedures for the property you were interested in. Some lenders require a property to be on the market for a certain number of days before they will review offers. Others give preference for owner occupants over investors. But for the most part lenders care about one thing....the bottom line!
0 votes Thank Flag Link Sun Mar 31, 2013
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